When considering renting a commercial property in Saudi Arabia, whether it's a retail store, office, or showroom, a first impression isn't enough to make a sound decision. A property might hide signs of landlord neglect behind its elegant facade, which could later impact your experience as a tenant, both in terms of maintenance costs and the stability of your business within the premises.

With the diversity of Saudi real estate and the expansion of its commercial market, it's become essential to check for certain signs that may indicate poor property management or a lack of follow-up from the owner. In this guide, we provide you with 7 clear warning signs to pay attention to before signing a lease agreement, ensuring you invest in the right place without unpleasant surprises later on.

Warning Signs Before Renting a Commercial or Residential Property

Here are the most prominent signs to look out for before renting a property in Saudi Arabia, whether it's a retail store, office, or showroom:

1. Condition of the Property's Surroundings The external condition surrounding the property is an important indicator of the landlord's overall attentiveness. Facilities such as the building entrance, parking, elevators, and common areas clearly reflect the level of care and management.

If these elements are clean and organized, it often indicates the landlord's commitment to regular maintenance, even if the property is old. However, if they appear neglected or dilapidated, it could be a sign of poor general maintenance, which affects the work environment and the appearance of the business to customers.

2. Interior Condition and Neglected Maintenance Ignoring regular maintenance in commercial properties is a serious indicator of landlord neglect and can lead to real operational losses for the tenant. When recurring problems arise, such as water leaks, electrical malfunctions, or damaged air conditioning and ventilation systems, it not only reflects poor maintenance but also reveals a lack of seriousness in managing the property as a sustainable commercial environment.

Therefore, before signing the lease agreement, it's crucial to ensure that all property facilities are working efficiently and that there are no deferred problems or chronic malfunctions. It is among the tenant's rights in Saudi Arabia to receive a property suitable for commercial use without the need for major repairs. Thus, thoroughly checking the property's condition is an essential step that protects your investment and ensures the stability of your business.

3. Landlord Delay or Disregard in Responding to Your Inquiries When a landlord stalls in responding to your calls or messages or avoids answering your inquiries about the property, it may indicate a lack of commitment and disinterest in resolving tenant issues, which is a significant warning sign before signing the lease agreement.

4. Negative Comments from Previous Tenants If you manage to contact previous or current tenants and hear repeated complaints about maintenance delays or poor landlord dealings, this is a clear indication of administrative neglect within the property. Evaluating others' experiences can be an important guide to what you can expect during your rental period.

5. Frequent Advertisements with Below-Market Prices If you notice that the property is frequently re-listed for rent, often at prices below the market average, this could be evidence of ongoing problems that cause tenants to leave quickly. This suggests the likelihood of landlord neglect in maintaining the property or a lack of commitment to providing a suitable environment for businesses.

6. Landlord Refusal to Repair Defects Before Signing When you inform the landlord of any obvious defects in the property and they refuse to carry out repairs before signing the lease agreement, it is an indicator of their neglect and lack of responsibility towards the property's quality and the tenant's comfort. This type of disregard may recur during the lease period, exposing your business to continuous problems.

7. Unclear or Ambiguous Lease Agreement To ensure avoidance of any future disputes or unexpected additional costs, it is essential that the commercial property lease agreement includes all details clearly and accurately, in addition to the rent value and payment mechanism. Important clauses such as: contract termination conditions, responsibilities related to maintenance and repairs, and property use within the agreed commercial activity, must be specified.

It is also advisable to document the condition of the commercial property at the time of handover and clarify who bears the costs of renovation or modifications if they arise later. Before signing, you must read the contract carefully, paying attention to any vague clauses or unjustified additional fees, so you don't fall victim to landlord neglect or misunderstanding.

8. When a Non-Refundable Deposit is Required A security deposit is paid to ensure compliance with the agreed-upon terms in the contract and is supposed to be fully refunded to the tenant at the end of the lease term, unless there is property damage or a breach of contract clauses, such as early departure without notice.

However, if the landlord refuses to refund the amount without legal justification, it is a negative indicator of their conduct and may be considered landlord neglect or bad faith, which infringes upon the tenant's rights in Saudi Arabia.

You can also read:

Fundamentals of Project Site Selection in Saudi Arabia and Influencing Factors

Residential or Commercial? Your Guide to Choosing the Best Property for Investment in Saudi Arabia