During the last years, Saudi Arabia made a great development in the rental property market, aiming to create the balance between owners and tenants. Vacant property rental value in Saudi Arabia came as the solution to achieve this aim.
Let’s discover in this article all the details about this regulation and how it works to serve both rental process parties.
Regulations for Vacant Property Rental Value in Saudi Arabia
At the beginning, we should understand the meaning of “Vacant property rental value”. It is defined as an estimated value calculated based on the rent of a comparable property to the vacant one subject to fees.
This in terms of location, area, use and structural condition, within the same urban area and during the same time period. Also, here are the prominent regulations:
Last Approved Rental Value
When a previously occupied property is rented again, the rental value of vacant properties in Saudi Arabia is calculated based on the value recorded in the most recent lease contract registered on the Ejar platform.
This approach aims to protect tenants from unjustified rent increases for vacant properties without an economic basis.
Mutual Agreement for New Properties of Vacant Property Rental Value in Saudi Arabia
If a property has never been leased before, the landlord and tenant may mutually agree on the rental value, provided it is registered on the Ejar platform and aligned with prevailing market conditions.
How to Object about the Value?
First, we have to notice that there are certain cases should be exist, such as:
- Major renovations.
- Significant increase in property value.
- If the last lease dates back to a time prior to 2024.
Here, the landlord has the right to file an objection with the Real Estate General Authority via Ejar Platform. Also, it should be within a specified timeframe. Required documents, such as a certified property appraisal report and construction permits, must be submitted.
Correcting Violations in the Landlord Tenant Relationship in Saudi Arabia
In addition to organizing the vacant property value, the landlord tenant regulations also came with strict guidelines to achieve justice. Here are more details about these corrections to some violations:
Common Types of Violations
Among the violations that require correction are:
- Increasing the rent or imposing unlawful conditions that conflict with regulatories.
- Failing to register the lease contract through the Ejar Platform as required by law.
- Refusing to renew the lease in cases where refusal is not permitted under regulations that define renewal and termination.
Correcting Violations Mechanisms
Acceding to vacant property rental value in Saudi Arabia ,When a violation is confirmed, the regulatory authority gives a while to correct the violations and get back to the legal frame. For example:
- Readjusting the rental value of vacant properties in Saudi Arabia to the correct amount or registering the lease on the Ejar platform,
Authorities also preserve the affected party’s right to seek compensation through the courts if necessary.
What is the Importance of These Regulations in Real Estate Stability?
Setting up clear regulations of the vacant property rental value and creating correcting violations mechanisms achieve some strategic ambitions. Such as:
- Achieving balance between the tenant and landlord rights.
- Reducing the conflict between both parties.
- Preventing unjustified rental inflations.
- Enhancing the competition and transparency through registering on the platform.
- Protecting social stability through keeping the rents at an affordable level.
(FAQ)
Here are the most frequently asked questions about this topic:
What are the Vacant Properties?
It means the ready for use buildings, whether they are residential or commercial or administrative. Also, they are within urban areas, but remain unoccupied or unused for an extended period without an acceptable legal justification.
How Can We Object to the Determined Rental Value?
By submitting a request through the Ejar network within the specified timeframe. The Real Estate General Authority reviews the request and issues a decision.
Within 10 working days from the date all required documents are submitted the authority will notify the applicant of the reasoned decision through the platform.
In the end, the vacant property rental value in Saudi Arabia exceeds being just a regulation that keeps on both parties right. It is also a great plan for a brighter future that you can discover through Bayut Blog and check all related subjects with the real estate industry.
