Holiday Home and Private Unit Permits: The Conditions, and When You Need a Licensed Manager

If you rent out your apartment, holiday home or chalet by the night, you are providing overnight accommodation to visitors, and that activity is governed by a special permit from the Ministry of Tourism called the private tourism hospitality facility permit.

This article explains the conditions and obligations of the permit, and the threshold beyond which contracting with an establishment licensed to manage hospitality facilities becomes a requirement rather than an option. The reference here is the Private Tourism Hospitality Facility Regulation (لائحة مرفق الضيافة السياحي الخاص; Ministerial Decision 2295), in the version published on the Ministry's website; always check the version in force.

What is a private tourism hospitality facility?

The regulation defines it as a furnished, self-contained property unit, owned by an individual and permitted by the Ministry, that provides nightly overnight accommodation to tourists for a fee.

The key words here are: self-contained unit, furnished, owned by an individual, nightly stays. If you are an establishment operating a whole building, your route is a hospitality facility licence, not a private facility permit; compare the two routes in Licensing furnished and serviced apartments.

Who is eligible for the permit?

According to the text of the regulation:

• The applicant must be a Saudi national.
• The unit must be owned by the applicant or leased to them under an electronic contract.
• It must be within a property designated for residential or agricultural use.
• In a jointly owned property: the other owners must not object to daily renting.

How many permits can you obtain?

These are the two most important provisions for an owner with more than one unit:

Situation	What the regulation provides
In a single property	The total number of permits issued to one person may not exceed three
Your total permits	If they exceed eight, a valid contract with an establishment licensed to manage tourism hospitality facilities, covering the term of the permit, must be submitted

The Minister or his delegate may temporarily suspend the issuance of permits in a specific geographic area.

What does “an establishment licensed to manage hospitality facilities” mean?

It is an establishment that holds a licence from the Ministry of Tourism to carry out the activity of managing tourism hospitality facilities; the Regulations for the Management of Tourism Hospitality Facilities (لائحة إدارة مرافق الضيافة السياحية) provide that the activity may not be carried out without a licence, and divide licences into categories. When choosing a management company, ask for its licence number and make sure its category covers the type of your units.

Permit term

A permit is valid for no more than one year. Put the expiry date in a follow-up schedule, especially if you have several units with different dates.

Your obligations after obtaining the permit

The regulation sets out operating obligations in detail, most notably:

General

• Not enabling others to use the permit.
• Enabling the inspector to carry out their duties, and responding to the Ministry.
• Not using the Ministry's name or logo in marketing without approval.

Quality

• Displaying the permit details and usage instructions inside the unit.
• Cleanliness, maintenance and readiness of the unit before the guest arrives.
• Using Arabic and English and both the Hijri and Gregorian calendars.
• Not refusing the service when there is a confirmed booking without an acceptable reason.
• Updating details as soon as they change.

Prices

• A price list in both languages that includes the statutory fees and taxes.

Security and safety

• Protecting the privacy of guest data.
• Providing a fire extinguisher, a smoke detector and a first-aid kit.
• Reporting incidents immediately to the competent authorities.
• Verifying the guest's identity by viewing the original document without taking a copy.

Booking and payment

• Restricting bookings and marketing to travel and tourism service providers.
• Not requesting or receiving any amount except through them.
• Not providing additional services that were not announced in advance.
• Removing the listing from booking platforms when the service stops.

When does contracting with a management company become a practical option before the regulatory threshold?

Even before reaching eight permits, you may find that managing several units yourself is difficult:

• Housekeeping and readiness between one stay and the next.
• Responding to guests at any time, and following up on reviews.
• Renewing permits on different dates.
• Pricing and availability across more than one platform.

If these tasks are consuming your time or affecting reviews, compare the cost of a management company with the cost of your time and the revenue you are missing. The list of questions in How to choose an operator for your hotel may help, as most of them apply to managing private units.

Frequently asked questions

Can a non-Saudi obtain a private facility permit?

The published version of the regulation requires the applicant to be a Saudi national. Check the current requirements with the Ministry.

Does the permit cover chalets and rest houses?

It covers a self-contained furnished unit owned by an individual within a residential or agricultural property and rented out by the night. Check with the Ministry whether this applies to your specific unit.

How many permits can I obtain in one building?

The total number of permits for one person in a single property may not exceed three.

When do I need a contract with a licensed management establishment?

When the number of your permits exceeds eight, according to the text of the regulation.

Can I receive payment directly from the guest?

The regulation provides that no amount may be requested or received except through a travel and tourism service provider.

Next step

If you own several units and are considering options for managing them, you can contact the Mirada team with your questions.