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Saudi Arabia – Property Letting

Letting Process in Saudi Arabia

Income Requirements

Typically, landlords require tenants to prove a stable income, often by providing recent pay stubs or bank statements. This ensures the tenant’s ability to pay the rent.

Rules and Regulations

Saudi Arabia’s rental laws favor the landlord to some extent but still provide protection for tenants. Both parties must adhere to the terms set in the rental agreement.


A written contract is generally required, outlining the terms of the lease, including rent, duration, responsibilities for repairs, and other specific conditions. It must be written in Arabic to be legally binding.


Rent rates vary depending on the location, size, and condition of the property. Rent is usually paid quarterly or yearly in advance.


Properties can be rented furnished or unfurnished. Furnished apartments are more common in expat compounds and may include all necessary appliances and furniture.


Real estate agents can assist in finding suitable properties. They usually charge a commission, typically equivalent to one month’s rent.

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A security deposit is often required, typically equal to one or two months’ rent, refundable at the end of the lease if there are no damages.


Maintenance responsibilities should be clearly stated in the contract. Usually, minor maintenance is the tenant’s responsibility, while major repairs are the landlord’s responsibility.


Cleaning arrangements may vary. In some cases, landlords provide cleaning services, especially in compounds catering to expatriates.

Licensing for Letting Property

Requirement of a License

For individuals, letting a property usually does not require a license. However, if you are operating as a real estate business, specific licensing and registrations might be required.

Procedure for Obtaining a License

If you are engaging in commercial property letting, the following procedure may apply:

  1. Registration with the Ministry of Commerce: You must register your business with the Ministry of Commerce in Saudi Arabia.
  2. Obtaining Municipal Approvals: Depending on the location, municipal approvals might be necessary.
  3. Adhering to Real Estate Regulations: Compliance with all real estate regulations is essential, ensuring that the property meets all safety and legal standards.
  4. Finalizing the License: Once all approvals are obtained and fees are paid, the license will be issued.


Property letting in Saudi Arabia is a well-structured process, involving clear rules and guidelines. Understanding the nuances of contracts, deposits, maintenance, and other aspects of renting is vital for both landlords and tenants. While individuals do not usually require a license to let property, commercial entities must comply with specific regulations and licensing requirements. Engaging with knowledgeable real estate agents and legal experts can smooth the process and ensure compliance with all local laws and regulations.

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