Kuwait’s parliament enacted a major tenancy update in 2025 that reshapes rent adjustments, deposits, maintenance duties, and dispute resolution for residential leases.
If you are an expatriate tenant or an HR manager placing staff, understanding these rules helps prevent surprise changes, rushed move‑outs, and avoidable lease conflicts.
Who is covered
Tip: If the contract references a hospitality or tourism license, it follows hospitality rules rather than residential tenancy rules.
Key changes at a glance
Result: Tenants gain predictability on adjustments and deposit handling, clearer timelines for repairs, and a structured resolution path before any eviction action.
Rent‑adjustment mechanics (how the cap works—non‑numerical)
Applies after the first full year of tenancy.
Landlord must issue formal written notice with the new amount and effective date in advance of renewal.
Adjustments are cumulative over time; ensure your lease specifies how the cap is applied year‑to‑year.
Some high‑demand zones may be designated for a slightly different adjustment framework; confirm current status before signing or renewing.
Practical step: Add a rent‑adjustment clause in the lease that mirrors the statute’s language to prevent disputes if ownership changes.
Deposits and refund timelines (no amounts)
Security deposits are statutorily limited and must be handled transparently.
Refunds must be processed within a defined timeframe after keys are returned.
Permitted deductions are limited to specific categories, such as documented arrears and verified damage beyond normal wear.
Landlords must provide a signed statement listing any deductions with supporting documentation.
Practical step: Use a photo‑backed condition report at move‑in and move‑out so refund decisions are evidence‑based.
Maintenance obligations and temporary reductions
Structural, plumbing, and electrical issues fall on the landlord within a defined completion window once notified in writing.
If repairs are not completed on time, tenants may arrange a compliant remedy and adjust the next payment accordingly or request a temporary reduction authorized by law.
Tenant‑caused damage and minor consumables remain outside the landlord’s duty.
Practical step: Report issues in writing (email or approved messaging) and keep timestamps, photos, and technician notes.
Eviction and dispute resolution flow
Practical step: Always attend mediation. Most residential disputes resolve at this stage, saving time and avoiding extended proceedings.
Common scenarios and how to respond
Mid‑contract rent increase before the first year ends
Response: The statutory adjustment framework generally applies after the first full year. Acknowledge the notice and request alignment with the renewal date and the law’s timing rules.Deposit not returned after handover
Response: Send a formal reminder referencing the statutory refund timeline and request the itemized statement with supporting documentation. If not received, submit an e‑complaint through the designated government channel.Urgent plumbing leak with no action
Response: Notify the landlord in writing and follow the law’s timeframes. If not resolved, arrange a compliant repair and adjust the next payment or request a temporary reduction as permitted; keep receipts and a technician report.
Corporate leases and HR considerations
Corporate leases may include additional operational terms while still respecting core tenant protections.
Ensure the lease specifies the rent‑adjustment cap, deposit handling, notice periods, and maintenance responsibilities in plain language.
Align the lease address and resident data with identity records to avoid delays in utility setup or address verification.
Practical step: Use a standardized addendum that mirrors the statute’s terms, so every placement follows the same rules.
Documentation checklist (copy‑paste)
Lease with rent‑adjustment clause mirroring statute language
Photo‑backed condition report at move‑in and move‑out
Access inventory: keys, fobs, parking remotes, mailbox key
Written maintenance requests with timestamps and photos
Formal notices (sent and received), saved as PDFs
Mediation booking and outcome documents (if any)
FAQs (non‑financial)
Does the cap apply to serviced apartments?
No. Hospitality‑licensed properties follow hospitality regulations rather than residential tenancy rules.Can a landlord request post‑dated cheques for the year?
Landlords can specify payment methods in line with law and banking standards, but deposit handling must comply with statutory limits and documentation rules.What if a landlord ignores mediation?
Courts proceed based on the mediation record. Failure to engage may affect the court’s view of the dispute and subsequent timelines.Can a new owner change terms mid‑lease?
Successor landlords step into the existing lease; statutory protections and agreed terms continue until renewal unless both parties sign an amendment.
Action plan for expatriate tenants
Review the lease for alignment with the new law before signing or renewing.
Keep all communications in writing and store evidence systematically.
Register for relevant government e‑services to file or track housing‑related requests.
Attend mediation with a clear evidence file if a dispute arises.
Conclusion
Kuwait’s 2025 rental update strengthens predictability for expatriate tenants: adjustments are regulated, deposits are standardized, maintenance timelines are enforceable, and mediation is mandatory before court.
By mirroring the statute in your lease, documenting every handover and repair, and using the mediation route when disputes surface, you safeguard housing stability and minimize disruptions to daily life and work.
