Saudi rent payment system switches to Ejar from Jan 15

Image credit: Getty Images

If you rent your residence in Saudi Arabia then you should know about this major change to the way payments are made come the second week of January.

The country’s Real Estate General Authority (REGA) has mandated that all monetary transactions or rent payments will have to be made through the newly launched ‘Ejar’ platform. This change goes into effect from January 15.

#خبر | #هيئة_العقار: حصر دفع الإيجار للعقود السكنية من خلال القنوات الرقمية في #إيجار بدءًا من 15 ينايرhttps://t.co/fkRXDVDBwX pic.twitter.com/gx2ilJ4krs

— الهيئة العامة للعقار (@REGA_KSA) January 2, 2024

What does it mean?

This means that all residential rent payments, and proof of payment outside the approved digital channels will not be accepted, the Saudi Press Agency reported.“After January 15, any proof of rent payment operations outside the framework of digital channels of Mada and SADAD on Ejar, using the number 153, will not be counted. As of now, this directive does not include commercial rent contracts,” it said.

The authority said that payment of rent through Ejar includes all new residential rental contracts.

The change comes into effect after a decision by the Saudi Cabinet which called for a streamlined electronic service for rent payments to improve efficiency, transparency and ease of access for tenants and their landlords.

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.

How does it work?

Digital payments can be made through Ejar’s Mada or SADAD channels, or using the postpaid number 153.

The step begins with the landlord and tenant documenting the contract on Ejar through a real estate broker licensed by the authority, and then using the digital payment channels on Ejar to conduct payment operations, where the rental payment, after being paid through the digital channels, reaches the bank account of the landlord registered in the rental contract within five working days.

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 authority clarified on social media platform X, that, “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.”

تطبيقًا لقرار مجلس الوزراء رقم (131) بوضع الترتيبات اللازمة لتوفير خدمة السداد الإلكتروني لمدفوعات عقود الإيجار، تعرّف على قنوات الدفع الرقمية في #إيجار pic.twitter.com/IRpVz0IldY

— إيجار (@ejar_sa) December 22, 2023

Benefits of Ejar platform

REGA added that digital payments through Ejar offer a number of advantages and benefits in the rental process:

• It safeguards the rights of all parties,
• Proper documentation of all payments,
• Improved transparency in the sector,
• The reduction of real estate fraud

Also read: Saudi wealth fund PIF splashes $31.6bn in 2023