Published on and written by Cyril Jarnias
Moving to Oman for several years, whether for work, an investment project, or a lifestyle change, almost always involves long-term rental housing. The market is attractive, rents remain generally more affordable than in other Gulf countries, and the legal framework protects both owners and tenants. However, the rules are specific, and a poorly managed (or unregistered) rental can quickly turn into a headache.
This guide explains in clear terms the steps to rent a property long-term in Oman, the budget to plan for, and the legal aspects to protect yourself.
Understanding the Rental Market in Oman
The rental market in Oman is both dynamic and regulated. Prices vary significantly depending on the city, neighborhood, type of property, and services offered, but the country remains one of the most affordable in the Gulf Cooperation Council for housing.
The sector saw a rental decline of around 10 to 15% per year between 2019 and 2022, followed by a clear recovery from 2023 onward, with annual increases ranging from 5 to 17% depending on the segment. In Muscat, apartment rents even rose by about 17% in 2025. Projections indicate further increases of 3 to 7% per year in the coming years before stabilizing.
Average occupancy rate for housing in Oman, across all property types.
Muscat, Salalah, Sohar… Where to Rent Based on Your Profile
Muscat concentrates the bulk of rental demand, especially in its city center and in upscale residential compounds. It is also the most expensive city in the country, but remains, on average, less costly than major Gulf metropolises like Dubai, Abu Dhabi, or Doha for comparable quality.
Other major cities in Oman, such as Salalah, Sohar, Nizwa, Sur, and Barka, generally offer lower rents than the capital. However, this real estate market is sometimes less liquid and offers a more limited selection of high-end properties.
Several tenant profiles are well identified:
– Expatriates (executives, diplomats, employees of international organizations) dominate the market in central Muscat neighborhoods and in integrated compounds designed for foreigners (Integrated Tourism Complexes).
– Omanis tend to prefer villas and townhouses on the outskirts.
– Young professionals and students opt for studios and shared apartments.
– Families typically look for two- to three-bedroom apartments and villas near schools.
How Much Does a Long-Term Rental Cost in Oman?
Figures vary by source and period, but the following ranges provide a realistic overview of the long-term residential market.
Rental Ranges by Property Type and Location
The amounts below are monthly and expressed in Omani Rials (OMR).
Muscat: City Center and Suburbs
| Property Type | Area | Monthly Rent Range (OMR) |
|---|---|---|
| Studio | Desirable neighborhoods | 180 – 335 |
| 1 bedroom | City center | 197 – 400 (up to 350 – 600) |
| 1 bedroom | Suburbs / out of center | 134 – 300 |
| 2 bedrooms | Muscat (overall) | 300 – 650 |
| 3 bedrooms | Desirable neighborhoods | 359 – 650 |
| 3 bedrooms | Suburbs | 250 – 500 |
| Townhouse | Muscat | 450 – 800 |
| Villa 3–5 bedrooms | Muscat | 900 – 2,000 |
| Shared room (co-living) | Muscat | 60 – 120 |
National averages confirm these ranges: around 220 OMR for a 1-bedroom apartment in the city center and 147 OMR outside the center, around 403 OMR for a 3-bedroom in the city center and 257 OMR on the outskirts.
Other Major Cities (Salalah, Sohar, Nizwa, Secondary Cities)
| City / Area | Property Type | Monthly Rent Range (OMR) |
|---|---|---|
| Salalah – city center | 1-bedroom apartment | 150 – 300 |
| Nizwa / Sohar | 1-bedroom apartment | 150 – 250 |
| Salalah / Sohar (outside center) | 1 bedroom | 250 – 450 |
| Secondary cities | Shared room | 30 – 80 |
Nationally, a single person spends on average around 626 OMR per month in Muscat (including housing) and a family of four around 1,321 OMR. Rent is the largest part of the budget.
Comparison with Buying: When Renting Remains More Rational
Mortgage rates are around 4 to 6% per year, averaging about 5.25% for a fixed-rate loan over 20 years. For a property worth 100,000 OMR financed at 5.5% over 20 years, the monthly payment is around 690 OMR, which is higher than most rents for 1- to 3-bedroom apartments in most neighborhoods.
Given that the average net monthly salary after tax is estimated at around 678 OMR in Muscat (and just over 900 OMR nationally), renting is often more affordable and flexible for an expatriate or newcomer than buying immediately.
Additional Costs Beyond Rent
Renting in Oman is not just about the listed rent in the advertisement. Several expense items add up and must be anticipated in the budget.
Agency Fees, Security Deposit, and Advance Payments
Agencies typically charge the equivalent of one month’s rent as a rental placement fee, sometimes as a flat fee. The payer may be the owner or the tenant depending on the local agreement: this should be clarified from the start.
The security deposit – or guarantee deposit – is not strictly regulated by law, leaving considerable contractual freedom. In practice, the following patterns are common:
| Type of guarantee requested | Typical amount / arrangement |
|---|---|
| Simple deposit | 1 month’s rent |
| Advance payment | 3 months to 1 year’s rent |
| Post-dated checks | 1 check per rent due date |
| Promissory note | Total lease amount |
In the absence of specific rules on deposits, some parties agree to place the deposit in an escrow account, possibly earning interest for the tenant, with written conditions for its return. This practice is still a minority but is growing.
These common practices require sufficient cash on hand at the time of signing the agreement, as the funds need to be available upon commitment, not at the time of actual disbursement.
Utilities, Services, and Taxes
The following are typically the tenant’s responsibility, unless stated otherwise in the contract:
– Electricity, water, air conditioning (often via the electricity bill), gas (bottles or tank)
– Internet and telephone
– Sewage, wastewater management, septic tank emptying
– Possible municipal or service fees (excluding the municipal tax on rents, which is paid by the landlord)
For an 85 m² apartment in Oman, the monthly combined bill for electricity, water, and air conditioning typically ranges between 30 and 80 OMR.
Rentals in integrated complexes (Integrated Tourism Complexes) or upscale residences often include common service fees, ranging roughly from 40 to 200 OMR per month. These cover maintenance of common areas, pools, gardens, security, etc.
On the tax side, residential rentals are exempt from the 5% VAT, but rental income is subject to a 3% municipal tax, payable by the owner. The landlord may sometimes try to pass this cost on: it is important to check this point in the contract.
The Legal Framework for Long-Term Rentals
One of Oman’s advantages for a foreign tenant is a relatively clear and protective legal framework. Provided the lease is properly drafted and registered.
Laws Governing Rentals
The relationship between landlords and tenants is mainly governed by: the lease agreement, applicable laws, and the rights and obligations of each party.
– Royal Decree No. 6/1989, often called the “Tenancy Law,” which organizes the rental of residential, commercial, and industrial premises.
– Its subsequent amendments, notably Decrees 72/2008 and 107/2010, and a more recent decree adopted in early 2025.
– The Civil Transactions Code (Decree 29/2013).
– The rules of civil and commercial procedure (Decree 29/2002).
– Ministerial decisions regarding registration fees (e.g., Decision 20/2016 for the Muscat Municipality).
The stated objective is twofold: to enable the population (including those with average or modest incomes) to access suitable housing, and to ensure a certain balance between owners and tenants.
The Lease Agreement: Form, Duration, and Registration
Residential leases generally use a standard one-page form issued by the competent municipality (Muscat Municipality for the capital). The general terms are printed on the back, and the specific clauses (rent amount, duration, payment terms, etc.) are filled in on the front. For commercial or industrial premises, a detailed addendum is often added.
The article outlines some key rules to follow. For instance, it is essential to structure your content well, use clear language adapted to the target audience, and always verify the accuracy of information before publication. These basic principles ensure the quality and effectiveness of communication.
– There is no legal minimum duration: the lease can be for a few months or several years.
– A lease registered with a municipality cannot exceed 7 years.
– Beyond 7 years, the contract must be registered with the Ministry of Housing and Urban Planning (MOHUP).
– The maximum total duration of a lease (or a usufruct-type contract) is 50 years.
Registration of the lease is mandatory. The owner is generally responsible for this step, but the tenant has the right to do it themselves if the landlord does not do so within one month of signing. Failure to register within this timeframe – and to pay the corresponding fees – can render the contract null and void in the eyes of the authorities, leaving the tenant without legal protection in the event of a dispute or eviction.
In Muscat, lease registration fees vary by duration. For a contract under 7 years, they amount to 5% of the total rent due. For a lease over 7 years registered with the ministry, the rate is reduced to 0.5% of the total rent. These fees constitute a tax debt owed to the state. By default, the owner is responsible, although the lease agreement may specify a different allocation.
A registered and duly notarized lease has the force of an “enforceable instrument”: in case of a dispute, it facilitates the execution of decisions (e.g., an eviction or payment judgment).
Access Conditions for Foreigners
To rent as an individual, a foreigner must have: a valid residency permit.
– A valid residence permit (residence card issued by the Royal Oman Police)
– A valid visa
– Proof of income (salary certificate)
– Often, a letter of non-objection (NOC) from the employer
If these conditions are not met or to simplify procedures, it is common for the lease to be signed in the name of the tenant’s Omani employer. In this case, the company usually provides its trade license and the passport of the authorized signatory. However, GCC companies do not have access to all the facilities provided for companies registered in Oman.
Without residency rights or work authorization, it is not possible to register a lease in one’s own name. This is a crucial point for newly arrived expatriates.
Rights and Duties of Tenant and Landlord
The balance of the lease rests on a clear allocation of responsibilities and strictly regulated rules for termination and renewal.
Tenant’s Obligations and Rights
The tenant is entitled to:
– The right to a habitable home: safety, sanitation, access to water and electricity.
– The right to peaceful enjoyment of the premises: the landlord cannot disturb or enter without notice, except in an emergency.
– The right to a written contract detailing the rent, payment dates, duration, each party’s obligations, and renewal and termination conditions.
– The right to contest an unjustified eviction or rent increase before the competent authorities.
In return, they must:
– Pay the rent according to the agreed terms (often via post-dated checks).
– Ensure routine maintenance of the property.
– Use the premises as intended (residential, family use) and refrain from illegal or disruptive activities.
– Pay utilities (electricity, water, gas, internet, sanitation fees, etc.), unless otherwise stipulated.
– Return the property at the end of the lease in its original condition, normal wear and tear excepted, which may involve touch-up or restoration work.
Landlord’s Obligations and Rights
The landlord retains:
Main legal rights held by the landlord in a rental agreement.
Right to collect rent under the terms of the lease.
Right to visit for inspection or repairs, subject to reasonable notice (except in emergencies).
Right to take legal action in case of non-payment, abnormal damage, or unauthorized use of the property.
They must: be present at the meeting, finish the report by the deadline, and follow the established guidelines.
– Deliver the property in good working order at the start of the lease.
– Carry out major repairs and work necessary to maintain habitability.
– Respect the tenant’s privacy and not enter the premises without authorization (except in emergencies).
– Comply with the legal timeframes and conditions if they wish to reclaim the property for personal use or redevelopment.
If the property is sold during the lease, the new owner is bound by the terms of the existing contract and cannot increase the rent or unilaterally terminate, except as provided by law.
Rent Increases: What Is Allowed and How Often
The initial rent is freely negotiated between the parties. Subsequently:
Rent cannot be increased before the end of the agreed lease period unless the tenant explicitly agrees. For leases longer than three years, an increase is possible every three years. If the parties disagree on the amount, the municipality decides, taking into account economic and social conditions. Historically, the law may have capped annual increases at 7% after three years; this cap has been relaxed, but authorities monitor excessive hikes.
A landlord may also request a mid-lease increase if the tenant requests substantial improvement work (e.g., installation of a more efficient air conditioning system or expansion), with the increase proportional to the cost of the work.
Termination, Renewal, and Evictions
Leases in Oman generally renew automatically for a period equivalent to the initial term, unless one party notifies their intention not to renew.
Rules to know:
The tenant must notify their departure at least three months before the lease expires, otherwise the contract is automatically renewed. This notice cannot be given at just any time: it must be given before the end of the agreed period. The landlord can only terminate the lease early for specific reasons (non-payment, non-compliant use, etc.). For a primary residence, the tenant is protected from eviction for the first four years of the rental relationship, and this period extends to seven years for commercial or industrial premises.
The landlord may reclaim the property for personal use or to house an immediate family member, provided:
– No other suitable housing is available to them, and
– They give the tenant at least six months’ notice.
If they do not actually occupy the property within three months of the tenant’s departure, or occupy it for less than a year without a valid reason, the tenant may claim the right to re-enter the premises at the previous rent.
Eviction procedures for non-payment, serious damage, or illegal activity follow a strict framework, with notice (generally 15 days for late rent) and the possibility to rectify. If the tenant pays the debt before judgment, including costs incurred by the landlord, eviction is generally not ordered.
Disputes are first often handled by a specialized municipal committee, whose decisions have the force of a judgment, and then, if necessary, before the courts of first instance, with avenues of appeal.
How to Search for and Choose a Home in Oman
Finding suitable accommodation involves several channels, some very standard, others more informal.
Real Estate Portals, Agents, and Networking
For a long-term stay, the most common approach is to combine:
– Listing portals: local specialized platforms (Dubizzle Oman, OpenSooq, OLX, Property Finder, JustProperty, Bayut);
– Reputable real estate agencies, often registered with the Ministry of Housing and Urban Planning (e.g., First Choice LLC, Savills Oman);
– Word of mouth, through colleagues, expatriate groups, social media (“expats in Oman”, etc.);
– “To Let” signs visible on facades.
For a formal long-term rental, it is highly recommended to use the services of a licensed agent. This professional ensures the landlord’s credibility, drafts the lease using the official municipal form, and handles essential administrative tasks such as contract registration and the move-in inspection report.
Vacation rental platforms (Airbnb, Vrbo, Stayz, Expedia, KAYAK) are very useful for temporary accommodation upon arrival, but they do not replace a registered long-term lease. They can serve as a transitional solution during the first few weeks while you find a standard rental.
Viewings, Move-in Inspection, and Inventory
Before signing, it is crucial to:
Before renting a property, it is crucial to inspect it physically or via a detailed video tour. This includes testing the fixtures (air conditioning, electricity, plumbing, kitchen appliances), checking the condition of structural elements (walls, floors, windows, doors, sanitary ware), and clearly specifying the level of furniture provided: unfurnished, semi-furnished (with fitted kitchen and light fixtures), or fully furnished (including furniture, linens, and dishes).
On moving day, a detailed move-in inspection report, ideally accompanied by photos, must be signed by both parties. This document will serve as a reference for returning the security deposit at the end of the lease. In practice, it is often prepared by the real estate agent.
Furnished, Unfurnished, Villa, or Apartment: Making the Right Choice
The rental stock in Oman is diverse: modern apartment buildings, detached villas, townhouses, duplexes, residential complexes with pools and gyms…
Furnished or Unfurnished
The majority of properties intended for long-term occupation are offered unfurnished or semi-furnished:
– Unfurnished: walls, floors, sometimes a basic kitchen and lighting. The tenant is responsible for buying all furniture and appliances.
– Semi-furnished: fitted kitchen, air conditioners, light fixtures, sometimes some built-in closets.
– Furnished: complete furniture (beds, sofas, tables, chairs), linens, dishes, and utensils.
Furnished properties generally have higher rents for the equivalent space but avoid an initial investment in furnishings. They are suitable for short-term contracts or expatriates with a mission of uncertain duration. For a long, stable stay, an unfurnished or semi-furnished property can be more cost-effective, especially if its rent is several tens of OMR lower per month.
Villa or Apartment: Impact on Budget and Daily Life
Apartments are the most affordable option. Villas, often with a garden and sometimes a private pool, typically cost two to four times more than similarly sized apartments in the same neighborhood. Townhouses fall in between.
An often underestimated factor is the maintenance cost for villas. While most apartment leases include the bulk of maintenance in the rent, villa tenants frequently contribute to garden, pool, and minor maintenance costs, ranging from 50 to 200 OMR per month depending on size and amenities.
For a controlled budget, a 2- or 3-bedroom apartment in a well-served neighborhood with possible amenities (parking, small gym, shared pool) is a practical compromise.
Managing Your Overall Living Budget in Oman
Housing must be considered within a broader budget. For a single expatriate in Muscat, an allotment of 300 to 500 OMR per month (excluding rent) is often necessary to live comfortably, while a family of four typically counts on 700 to 1,500 OMR excluding rent, depending on their lifestyle.
The main expense items, besides rent and the utilities described above, are:
Main monthly expense categories for an expatriate, with price ranges in OMR (Omani Rial).
Estimated monthly budget between 50 and 150 OMR per person, varying with the frequency of restaurant meals.
Fuel is affordable (~0.23 OMR/L). A car is often essential. Monthly cost varies by usage.
Doctor’s visit: 10-25 OMR. Private health insurance for expatriates: between 40 and 100 OMR per month.
Annual tuition fees at international schools: from 1,000 to 7,000 OMR per child.
Average budget of 20 to 50 OMR per month. May increase with domestic travel.
The good news for a tenant: there is no personal income tax on salaries and no annual property tax on residential properties. The absence of a housing tax, combined with rents still competitive compared to other Gulf capitals, eases the financial pressure.
Practical Steps: From Lease Signing to Setting Up Utilities
Once the property is chosen and the lease negotiated, several administrative steps remain essential.
Signing, Initial Payments, and Registration
The process typically proceeds as follows:
Renting a property in Dubai follows a structured process. It includes: signing an agreement detailing rent, duration, payments, and responsibilities; paying a security deposit (often one month’s rent) and post-dated checks; signing the standard municipal contract, potentially supplemented by an addendum; a joint move-in inspection; and finally, registering the lease with the municipality (or the ministry for over 7 years), with payment of the corresponding fees (5% or 0.5%).
The tenant should keep copies of all documents: signed contract, payment receipts, move-in inspection report, and any requests for work or repairs. In case of a dispute, these documents will be crucial.
Opening and Managing Utility Accounts
For electricity and water, the tenant (or landlord, depending on the case) must submit an application typically including:
– The registered lease.
– A copy of the ID (or residence card).
– The approved building plans and title deed (often provided by the landlord).
– A letter of non-objection from the municipality for certain connections.
Electricity and water services are provided by public or regional companies, such as Nama for electricity and Oman Water and Wastewater Services Company for water. Bills are paid through intermediaries like Oman Investment and Finance Company, either in person or via mobile apps.
Internet and telephone services are offered by operators like Omantel, Ooredoo, or Vodafone, with bundle offers (internet + mobile + TV) often being more attractive.
For properties not connected to the water network, tanker trucks fill the reservoirs every two or three days at a cost of around 25 OMR per month.
Septic tanks need to be emptied about once a year at a cost of 10 to 14 OMR per service. Again, the lease should specify who bears these costs, the owner or the tenant.
Investing to Rent in Oman: What You Need to Know If You Become a Landlord
Although this guide primarily addresses tenants, many expatriates or investors are interested in rental yields in Oman.
Gross yields generally range between 5 and 8%, with differences by segment:
| Property type / location | Approximate gross rental yield |
|---|---|
| Studio | 7 – 8% |
| 1-bedroom apartment | 6.5 – 7.5% |
| 2-bedroom apartment | 5.5 – 7% |
| 3-bedroom apartment | 4.5 – 6% |
| Villas and townhouses | 4 – 6% |
| Luxury villas | 4 – 5.5% |
| Apartments in Muscat (overall) | 6 – 9% |
| Cities outside Muscat (Salalah, Sohar, etc.) | 5 – 7% |
Integrated Tourism Complexes (Al Mouj, Muscat Hills, Muscat Bay, Jebel Sifah, etc.) particularly attract expatriates and are open to full foreign ownership, with condominium and service fees ranging from 0.40 to 1.50 OMR per square meter per year, plus a reserve fund (0.10 to 0.40 OMR per m²). These fees must be factored into profitability calculations.
Oman offers a favorable tax framework for rental property investment: no VAT on most residential sales, no annual property tax, and no capital gains tax. However, gross rental income is subject to a 3% municipal tax.
For a tenant, these elements explain why some landlords are sensitive to periodic rent increases and stability of occupancy: a good, reliable, and solvent tenant profile is often appreciated and can be an argument for negotiation.
Renting with Peace of Mind: Best Practices to Adopt
Without turning the tenant into a lawyer, a few reflexes can significantly reduce risks.
Before signing:
Before signing a lease, it is crucial to: verify the landlord’s identity and title (or the agent’s mandate); confirm the real estate agent’s registration with the Ministry of Housing; carefully read all clauses, especially regarding rent increases, termination, deposit, and maintenance fees; and request a translation if necessary, never signing a document you do not understand.
During the lease:
– Keep all invoices, rent receipts, and written exchanges (emails, messages) with the landlord or agent.
– Report serious problems (leaks, major breakdowns, AC failure) promptly in writing, and give the landlord a reasonable time to intervene.
– Avoid any substantial modification to the property (removing partitions, heavy renovation) without written consent.
– Never sublet or share the property for compensation without the landlord’s written permission, as this may violate the law.
As the end of the lease approaches:
For a smooth end of lease, officially notify your intention to vacate or renegotiate at least three months before the expiry date. Then arrange a preliminary inspection with the landlord to identify any abnormal damage and foresee necessary repairs. Finally, ensure the disconnection or transfer of utilities (electricity, water, internet) to avoid being billed after your departure.
In case of serious disagreement over rent, repairs, or the return of the security deposit, it is possible to refer the matter to the municipal committees or competent courts. The committees’ decisions are enforceable and can be issued relatively quickly.
Conclusion
Renting a property long-term in Oman is, as long as you respect the legal and administrative framework, a relatively safe and structured operation. The country offers a diverse rental market, rents still competitive regionally, and significant legal protection for both tenants and landlords.
The key is to:
For a worry-free rental, it is essential to: understand the rough range of rents by city and property type; anticipate all costs (rent, utilities, services, agency fees, possible advance payments); ensure the contract is correctly drafted, signed, and registered according to legal requirements; and know your rights and obligations, particularly regarding increases, renewal, and termination.
With these guidelines, renting a long-term home in Oman becomes a manageable project, allowing you to fully enjoy the lifestyle, professional opportunities, and local hospitality, without unpleasant legal or financial surprises.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
