The Saudi Credit Bureau (SIMAH) is set to introduce a new rental law seeking to curb non-payment of rent, designed to protect the rights of both tenants and landlords.
The new legislation, which requires landlords to enrol in a system that keeps a history of tenants’ rent payment, enables property owners to run background checks and identify tenants with bad rental histories.
Landlords may opt to enrol in the new system, which also requires them to charge tenants monthly instead of the current common practice of having tenants pay quarterly, semi-annually or annually. 
According to the proposed law, if a tenant fails to pay rent for a certain month, this information will be entered into the system. Tenants who continue to fail to pay the rent will face strict measures by SIMAH including difficulty in obtaining personal loans and credit cards.
