Saudi Gazette report
RIYADH — A schedule of the Labor Law, classifying violations of regulations governing the landlord-tenant relationship, stipulates escalating fines for landlords who violate the regulations.

Among the major violations is increasing the total rent for residential, commercial, or vacant properties in contravention of the regulations. The penalty begins with a fine equivalent to two months' rent for the first offense, rising to six months' rent, and then to 12months' rent for repeated violations. It also stipulates that the landlord must rectify the violations.

The schedule also includes penalties for failing to register rental contracts on the electronic rental services network Ejar. These penalties begin with a warning and require the violation to be rectified, followed by fines of up to three months' rent for a second offense, increasing to six months' rent for a third offense. Similar fines will be imposed on landlords in Riyadh if they refuse to renew rent contracts or forcing tenants to vacate without legal justification.

The decision emphasizes that the application of these penalties does not prejudice the right of the affected party to claim compensation. This comes as an extension of the Cabinet’s approval of the provisions regulating the rental relationship, which included suspending the annual increase in the total rent value for residential and commercial rental contracts in the city of Riyadh for a period of five years.