In a progressive move, the Real Estate General Authority in Saudi Arabia has mandated that residential rental payments must be conducted exclusively through the Ejar digital platform starting from 15th January 2024.

Ejar has officially endorsed Mada and SADAD as approved digital payment channels. Users are required to input biller number 153 for seamless transactions. The Ejar platform emphasized that integrating digital payment methods aligns with the decision of the Council of Ministers.

According to the authority, this directive applies strictly to new residential rental contracts. Any rent payments made outside the digital channels of Mada and SADAD on Ejar, using the designated number 153, will not be recognized after January 15. It's important to note that this directive currently excludes commercial lease agreements.

The authorities announced a gradual discontinuation of electronic receipt vouchers for new residential contracts. This is a result of direct settlement through digital channels, eliminating the need for physical vouchers.

Aligned with a Cabinet decision to establish an online payment service for rent contract transactions, the Real Estate Authority aims to simplify the process for tenants to pay bills online, depositing funds directly into the landlord's bank account as specified in the lease.

The Ejar platform emphasizes the initial step of signing the rental agreement on Ejar through a licensed real estate broker. Subsequently, both the landlord and tenant can leverage the digital payment channels on Ejar for transactions. Payments made through these channels are credited to the landlord's registered bank account within 5 working days.

The primary objective of the Ejar platform is to safeguard tenants' rights throughout the rental process. This includes pre-rental inspections, ensuring the apartment's condition, and enforcing regular maintenance by landlords to ensure building safety. Ejar aims to simplify the rental process for tenants.

Highlighting the advantages of digital payment, Ejar emphasizes the protection of both parties' rights, transparent payment tracking, and the elimination of the need for physical receipts. The move towards digital transactions not only enhances efficiency but also combats real estate fraud, making it more convenient for tenants to make partial payments when agreed upon by both parties.