The Saudi ‘Ejar’ platform has implemented a new policy that requires tenants to make a one-time payment towards the rental property’s guarantee at the time of signing the contract. This guarantee is designed to ensure that the property is returned without damage. The Rental Services E-Network or Ejar platform has made it possible to reserve the value of the guarantee from the tenant’s wallet upon contract documentation. The guarantee amount will be held by the Ejar portal as a neutral party. Upon the expiration or cancellation of the contract, a form will be issued for the return of the housing unit to the landlord after approval from both parties, and the amounts due to each party will be automatically returned as a balance in their electronic wallets.
This new process is aimed at monitoring the rental process, providing effective governance, safeguarding the rights of both parties, promoting transparency and trust, simplifying rental procedures, documenting them electronically, and reducing disputes related to the safety of the residential unit. The value of any damages can be deducted from the security amount deposited by the tenant in Ejar or returned to the tenant after agreement by both parties. The guarantee amount is recorded when the contract is registered by a licensed real estate broker, and a notification appears to the tenant to pay the guarantee value from their wallet. Before agreeing to the contract, the tenant must ensure there is enough balance in their wallet for the guarantee amount to be automatically kept in the Ejar portal.
If the contract is approved and documented on the network, the system confirms the reservation process and displays the reserved security amount in the tenant’s wallet. If the contract is not documented, the security amount reservation is released and returned to the tenant as a balance. The guarantee amount is defined as the security paid by the tenant to compensate the property owner for any damage. If no amount is specified for the guarantee, it will not impact the contract documentation process, but if an amount is specified, it must be registered and held with Ejar. The Real Estate General Authority in Saudi Arabia has confirmed that all financial transactions related to rent payments must be conducted through the Ejar platform starting from January 15, 2024. Currently, electronic rent payments are only applicable to residential contracts, not commercial ones, and approved payment channels include Mada or SADAD using the biller number 153.
In conclusion, the implementation of the Ejar platform’s new guarantee payment policy for tenants is a positive step towards enhancing the rental process in Saudi Arabia. By requiring tenants to make a one-time payment towards the property’s guarantee, the platform aims to ensure the property’s return without damage, promote transparency and trust, simplify rental procedures, and reduce disputes. The process for keeping the guarantee amount is clearly outlined, with the value recorded at the time of contract registration and reserved from the tenant’s wallet upon agreement by both parties. This new policy is expected to improve the overall rental experience for both tenants and landlords and streamline the rental process in the Kingdom.
