Settling Up at the End of a Tenancy: A Worked Example in SAR

Deposit, arrears, cleaning and damage, worked through on an illustrative tenancy so the arithmetic and the evidence requirements are both visible.

The end of a tenancy is where a year of informality becomes a number, and the number is usually argued about. A settlement that holds up is built the same way every time: the contracted sums, the evidenced deductions, the depreciation of what was damaged and a written statement the tenant can check. This example works one through so the method is clear.

The situation

A one-year tenancy on an unfurnished apartment is ending. The tenant has paid rent quarterly, one payment is partly outstanding, and the final inspection has found damage and cleaning items. All figures below are illustrative assumptions used to demonstrate the arithmetic, and what may actually be deducted depends on your contract and on the applicable rules.

Assumptions (illustrative)

• Annual rent: SAR 60,000, paid in four quarterly instalments of SAR 15,000.
• Security deposit held: SAR 5,000.
• Final instalment paid: SAR 9,000 of the SAR 15,000 due.
• Damaged items found: an internal door and a bedroom wardrobe door.
• Assumed replacement cost of the two items when new: SAR 2,400 in total.
• Assumed professional cleaning and a final utility balance: SAR 900 and SAR 350.

Step 1: Establish the contracted arrears first

SAR 15,000 due less SAR 9,000 paid equals SAR 6,000 outstanding.

Arrears are the clearest item because they are arithmetic against a schedule rather than a judgement about condition. Dealing with them first keeps the condition discussion separate, which matters because a tenant disputing a cleaning charge often concedes the rent position immediately.

Step 2: Value the damage against age rather than as new

Items with an assumed useful life of eight years, used for one year: 2,400 multiplied by seven eighths equals SAR 2,100.

Charging the full replacement cost of a part-worn item is the most common reason a deduction is rejected, because it puts the landlord in a better position than before the tenancy. Applying a straightforward age adjustment produces a figure that is both fairer and far easier to defend.

Step 3: Add the cleaning and the utility balance

SAR 900 for cleaning plus SAR 350 for the final utility balance equals SAR 1,250.

Both only stand up if the contract allocated them and the evidence exists: an invoice for the cleaning and a closing statement for the utility account. A cleaning charge with no invoice and no condition schedule is an opinion about tidiness.

Step 4: Total the deductions and compare with the deposit

SAR 6,000 plus SAR 2,100 plus SAR 1,250 equals SAR 9,350, against a deposit of SAR 5,000.

The deposit covers a little over half of what is owed, which is a common outcome and the reason a deposit is not a substitute for managing arrears during the tenancy. The remaining SAR 4,350 has to be pursued separately, and the chance of recovering it falls sharply once the tenant has left.

Step 5: Test the same settlement without a condition schedule

Without an agreed inventory, the SAR 2,100 damage claim and the SAR 900 cleaning charge are both open to dispute, leaving SAR 6,350 of defensible claim.

Three thousand riyals of the position depended entirely on ten minutes of photography at the start of the tenancy. This is the clearest argument for an inventory, and it costs nothing but attention.

Step 6: Issue a written settlement statement

Deposit SAR 5,000 applied against SAR 9,350 of deductions, leaving SAR 4,350 claimed, with invoices and the inventory attached.

A statement the tenant can check item by item either produces payment or narrows the dispute to one line. A withheld deposit with no explanation produces a complaint about the whole amount, including the parts that were never in question.

What changes the answer

• A longer tenancy increases the age adjustment, so the recoverable share of damage falls.
• Annual rent paid in advance changes the arrears position entirely and usually improves it.
• Items that were already marked at handover drop out of the claim if the inventory records them.
• A contract silent on cleaning makes that deduction difficult to sustain.
• What may lawfully be deducted depends on the contract and the applicable rules, which are updated over time.

What the numbers tell you

• Deal with arrears during the tenancy rather than hoping the deposit will absorb them.
• Apply an age adjustment to damaged items instead of claiming replacement cost as new.
• Keep an invoice for every charge you intend to deduct.
• The condition schedule is what converts an opinion into an evidenced claim.
• Issue a written, itemised statement so the dispute narrows to a line rather than the total.

Limits of this example

Every figure above is an illustrative assumption used to show the method, not a quote, valuation or market rate. Costs, rates, fees and regulations change and must be confirmed with the relevant authority, lender or supplier before you commit.

Domira handles the property side of a Saudi transaction end to end: inspecting the unit, reading the documents, valuing what is in front of you and managing the asset after handover. Tell Domira what you are buying, selling or letting and you will get a plain answer on what it is worth doing.