JEDDAH: From Jan. 15, all financial transactions related to payment of rent must take place through the online Ejar platform, Saudi Arabia’s Real Estate General Authority has confirmed. Digital payments can be made through Ejar’s Mada or SADAD channels using the postpaid number 153, it added.
The decision affects all residential rent payments, and after Jan. 15 proof of payment outside these approved digital channels will not be accepted, the Saudi Press Agency reported. The decision does not currently affect commercial rent contracts.
The authority said it will begin to phase out receipts for payments because they will be settled automatically through the digital channels, with no need for a separate receipt.
The change reflects a decision by the Saudi Cabinet calling for the development of a streamlined electronic service for rent payments to improve efficiency and better serve the interests of the rental sector by making it easier for tenants to send payments to their landlords.
The authority said all contracts between landlords and tenants will be documented on the Ejar platform by a licensed real estate broker, after which digital payments can begin within five working days.
Officials said that Ejar aims to preserve the rights of tenants throughout the rental process, from the initial inspection of the property to the signing of the contract with the landlord, who is then obliged to perform regular maintenance and is responsible for the safety of the building.
They added that digital payments through Ejar offer a number of advantages and benefits in the rental process, including safeguarding the rights of all parties, proper documentation of all payments, improved transparency in the sector, and the reduction of real estate fraud.
The new system prompted a wave of inquiries from residents about the changes and Ejar, through its official account on social media platform X, offered advice and information about the new rules for rental contracts and payments.
“If the contract is deemed valid and payment is made prior to the mandatory due date via the Ejar platform, the tenant has the option to complete the payment through a bank transfer to either the intermediary or the landlord,” it said. “Alternatively, cash payment is accepted, contingent upon the submission of a request for the issuance of an electronic receipt.”
Abdullah Shaheen, a Saudi resident of Jeddah, told Arab News: “I absolutely appreciate the shift toward digitizing financial transactions, especially in the realm of rent payments through the online Ejar platform.”
He said that such progressive decisions to automate financial processes help to increase confidence in the security of the system and provide more control over landlords’ compliance with statutory regulations relating to property management, taxes and other fees.
“This move ensures transparency and facilitates a more thorough analysis of rental costs relative to property types. It’s a significant step that enables the government to closely monitor and understand market dynamics in the property-leasing sector,” he added.
