Renting

Although foreigners have recently been given the legal right to purchase property on certain developments in Oman, renting remains the main option for accommodation. In Oman, rent is usually paid annually and not monthly. This is good news for the landlord, but bad news for tenants who often have to come up with a sizeable lump sum to cover their rent for the whole year. If your company provides you with an annual accommodation allowance, then they will usually cover your rent upfront. If not, it’s worth negotiating for your employer to pay the upfront sum, which you can then pay back on a monthly basis through salary deductions.


There remains a steady demand in the rental market (especially for better quality properties). The golden rule is that if you see a house you love, sign on the dotted line as soon as possible or someone else will snap it up.


Rents vary considerably depending on the size and location. As of 2012, the average rent for a two-bedroom apartment in Muscat ranges between $1,000 and $1,500 (RO 385 and RO 578) per month. Sharing accommodation provides a cost-effective way of living, if you don’t mind giving up some of your privacy, but be aware that mixed cohabitation is illegal unless you are related to your housemates.


Apart from your rent (paid annually), you will face additional costs when moving into a new house. These might include:
 

• A 3% municipality tax


• A security deposit (refundable when you vacate the premises, minus any damages)


• A deposit for your water and electricity accounts


If you are renting a villa with a garden, your water costs will be higher since the grass and plants will need watering every day in Oman’s hot climate.


The Lease


Your lease is an important document and will state, in addition to the financial terms, what you are liable for in terms of maintenance and what your landlord’s responsibilities are. It is important that you (or your company PRO, who may have more knowledge about the pitfalls of rental contracts) read through the lease and discuss any points of contention before you sign it. You may be able to negotiate on certain clauses in your contract, such as how many cheques you can use to pay your annual rent, who is responsible for maintenance, and how much security deposit you should pay.


The entire leasing process in Muscat is governed by well-drafted legislation and the lease is prepared on a standard municipality form. The standard lease, which can have minor changes made to it, is normally for one year (which is automatically renewable unless three months’ notice is given before expiry by either the landlord or the tenant). Annual rent for villas is often requested in advance in one cheque, although it is sometimes possible to agree with the landlord that six months’ rent is paid upon signing of the lease and the remainder of the amount by post-dated cheque. 


To take out a personal lease (in your name, not your employer’s name), you need to be a resident. The landlord will need a copy of your passport (with visa page), a no objection letter (NOC) from your employer, a copy of your salary certificate, a signed rent cheque and up to three post-dated cheques covering the remainder of the annual rent (the number of cheques depends on your landlord). If the rented property will be in your employer’s name, then the landlord needs a copy of the company’s trade licence, a passport copy of the person signing the rent cheque, and the rent cheque itself.


It is the landlord’s responsibility to register the lease with the relevant municipality. The registering of leases showing rental at less than the real amount is against the law, and it is also a big risk for tenants, who will have no protection in the event of a dispute.


The landlord must ensure that the house is in good condition before you move in, so don’t sign the lease until he has made the improvements you think need to be done (like painting, filling in wall holes, regrouting bathrooms and servicing the air conditioning units).


Rent Disputes


It goes without saying that there are distinct advantages to keeping friendly relations with your landlord. There are no hard-and-fast laws protecting the tenant and therefore it pays to stay on your landlord’s good side. If you have a disagreement with him that reaches a stalemate, the Ministry of Justice (24 697 699 / 800 77 777) will assist.

 

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