Wednesday, September 19, 2007

15% rent cap announced

Good news on rent, but only for those whose rents still haven't been increased yet.
The Council of Ministers Decision on Properties Rent Rise

Muscat, Sept 18 (ONA)---The Council of Ministers today decided that properties rent amount should not be increased by more than 15% of the current rent value during the next two years.

The Council of Ministers today issued a statement in this regard, text of which reads as follows:

“The Council of Ministers thoroughly reviewed at its session held on Tuesday 6th of Ramadhan 1428 AH corresponding to 18th September, 2007, the issue of organizing the relationship between the landlords and tenants of residences, shops and industrial sites and registration of their tenancy agreement registration on the light of the considerable increase in the properties rent level in the Sultanate.

As this issue has direct effect on all development, economic and social sectors, and in order to safeguard both the lessants and lessees interests, as an urgent solution to the issue, the Council of Ministers has decided that properties rent amount should not be increased by more than 15%, of its current rent value during the next two years. The municipality concerned will monitor implementation of this ratio as per stipulated regulations.

The government will also conduct a comprehensive study to regularize the relationship between landlord and tenants which fulfill all parties interests and contribute positively in promoting the urbanization renaissance in the Sultanate.
So if a landlord increases rent by 15% this year he can't increase it again next year? The landlord for the office we rent for the ESO increased the rent on us 50% and we just signed the new lease agreement a couple days ago!

4 comments:

Anonymous said...

I have never seen someone as greedy as the owner of Muscat Oasis residence. During my stay in the compound, he increased the rent first year 15%, and for the second year, he is asking now 50% increase.

Now that the law was passed about 15% increase, he sent a notice to some tenants asking them to evacuate the apartments cause he needs to do some refurbishment for the apartments (The apartments are less than 2 years old).

Won't the government move to protect tenants?

Per Your Request said...

Makes sense that the owner is "refurbishing" now.

Anonymous said...

Despite the government capping of 15%, owners of the properties do find out other ways to increase their rents in exhorbitant manners. Most common "Refurbishment of property" or "Rebuiliding the Structure" or "Emergency Repairs". Hope the government intervenes and takes some effective measures to curb this. We are facing this increases every six months now since last two years. Every Renewal is with an increase. This is just Plundering or Looting resorted by the Property owners. They are well aware that once setup, tenants are at their mercy. This calls for an urgent attention from autorities. Though interim relief has been provided by the Government announcement of 15% capping, still persons resorting to things mentoned above need to be brought in line.

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