Tenants are required by the Saudi “Ejar” platform to pay a one-time amount toward the rental property’s guarantee at the time the contract is signed. The purpose of this guarantee is to guarantee the property’s return undamaged.
When the contract is documented, the Rental Services E-Network, also known as the Ejar platform, allows the value of the guarantee to be reserved from the tenant’s wallet. The Ejar portal, acting as an impartial third party, will retain the guarantee amount. When the contract expires or is canceled, both parties must approve the form that will be used to return the housing unit to the landlord. The money owed to each party will be automatically refunded as a balance in their respective electronic wallets.
In addition to reducing disputes regarding the safety of the residential unit, this step aims to monitor the rental process, provide effective governance for its operations, protect the parties’ rights, and consolidate the values of transparency and trust. It also facilitates the rental procedures and documents them electronically.
According to information obtained by Okaz/Saudi Gazette, the tenant’s security deposit in Ejar may have the value of the damages subtracted from it, or the tenant may receive their money back following mutual agreement. As soon as the contract is registered by the licensed real estate broker and the guarantee amount’s value is recorded, the guarantee amount is kept.
A notification stating that the tenant’s wallet must be used to pay the guarantee value appears during the process. For the guarantee amount to be automatically maintained in the Ejar portal and only the contract approval process to be finished, the tenant must first credit the wallet if there is not enough balance before agreeing to the terms of the lease.
Following both parties’ approval and the contract’s network documentation, the system verifies the reservation process and displays the security amount that has been reserved in the tenant’s wallet. If there is no written contract, the security deposit is released and given back to the tenant as a balance.
According to the Ejar platform, the guarantee amount is the sum that the tenant pays as security to make up for any harm that may be done to the property and to hold the utility or the owner of the property accountable. The process of documenting the contract is unaffected if the guarantee’s amount is left blank; however, if it is, it needs to be registered and maintained with Ejar.
