Saudi Arabia’s New Short-Term Rental Rules: What Property Owners Need to Know Before the 29-Day Limit Hits

Riyadh Moves to Tighten Grip on Booming Short-Term Rental Market

RIYADH — The Saudi government has officially signaled a major shift for the Kingdom’s private tourism sector. A new draft regulation, currently circulating for review, aims to rewrite the rulebook for anyone renting out private residential units for short stays.

If this passes—and the smart money says it will—it’s going to be a lot harder to play the "casual landlord" in cities like Riyadh or Jeddah. The proposal is clearly designed to professionalize the market, ensuring that everything from a spare apartment to a guest house meets strict licensing and security standards.

Look, the tourism surge here is undeniable. But the government is clearly worried about the Wild West nature of some of these online listings. They want oversight, and they want it yesterday.

The 29-Day Hard Stop

One of the most immediate changes is the proposed 29-day limit on consecutive stays.

The logic here is pretty straightforward: the authorities want to draw a bright line between a hotel guest and a long-term tenant. If you’re renting to the same person for a month, you’re essentially a landlord, not a tourism operator. This is going to force a lot of boutique rental firms to rethink their booking calendars. If you’re currently selling monthly "executive stays," you’ll need to adjust your business model or pivot to traditional leasing contracts.

Licensing and Who Can Actually Play

You can forget about operating under the radar. The draft makes it illegal to offer short-term stays without a valid, one-year renewable license.

Who qualifies?

• Saudi citizens.
• Foreign property owners (provided they have the right paperwork).
• Holders of the Kingdom's "Premium Residency."

The property itself matters, too. You can’t just turn any shack into a tourist hub; it has to be zoned as residential, agricultural, or mixed-use. You’ll also need to have your insurance and security systems in place before you even think about listing on a platform like Airbnb.

Advertising and the "Truth in Listing" Push

Here’s the thing: the government is tired of guests booking a palace online and showing up to a broom closet.

The proposed rules mandate that all advertising must be 100% accurate. If you say there’s a pool, there better be a pool. If you say it sleeps four, you better not be cramming in six. For the big operators—anyone holding more than four licenses—there’s an added headache: you’ll be legally required to provide formal maintenance and cleaning contracts.

It’s an expensive move for some, but honestly? It’s probably long overdue for the industry.

The Privacy Tightrope

This is where it gets a bit tricky for operators. The draft is aggressive about data privacy. You have to verify a guest’s ID, but you aren’t allowed to hold onto copies of their documents.

Simultaneously, you’re required to plug into the Shomoos security system to report who is staying in your unit. You’re essentially acting as a mini-police station. You have to monitor for unregistered guests, report them to the authorities, and yet somehow keep the guest's data under lock and key. It’s a delicate balance, and I suspect a lot of small-time hosts are going to struggle with the compliance costs here.

What You Should Do Right Now

The truth is, even though this is a draft, waiting until the ink is dry to prepare is a recipe for disaster. If you're running a portfolio of units:

• Audit your locations: Check your zoning status now.
• Fix your ads: Scrub your listings for anything that could be interpreted as "misleading."
• Talk to your lawyer: If you don't have a solid handle on the Shomoos system, get one.
• Look at your contracts: If you manage more than four properties, start scouting for reliable cleaning and maintenance vendors today.

The government isn't just making suggestions; they’re building an infrastructure for a multi-billion dollar tourism machine. Whether you’re a premium resident with one villa or a firm managing dozens of units, the era of "set it and forget it" hosting is effectively over. Keep your eyes on the official gazette—once the final version drops, the grace period is likely to be very short.