The estate market is still striving in Yangon compared with the other countries and cities in Asia. There is an oversupply of properties on the demand from foreign clients. The number of rental market properties that conform to internationals standards has a limited supply. This situation is expected to change, however, there is a need to improve the quality of construction standards and enhance the awareness of local owners to adhere to the international standards to address the challenge of finding suitable accommodation.
Commissions – Any person can act as a broker for apartments in Myanmar because the real estate market is not regulated yet. Brokers charge one-month commission on the property being rented which is the market practice regarding real estate commissions. But there are also agents that offer other commission schemes which make the market competitive.
Contract periods – The common and longest contract period recognized by law for foreigners is one year. Renewal of the contract can be negotiated.
Payments of rent – It is a standard practice for rent of apartments in Myanmar to pay the owner in advance of the entire rental for the period. The risk after paying the entire rent is the possibility for the landlords to be unresponsive to the issues that may arise in the future.
Corporate payments are quite challenging because most often, the landlords will only accept cash payments in American dollars, but they rarely have a bank account to accept payments in US dollars by bank transfers. However, there is already a change in landscape as more owners already accept more adaptable payment terms using its own exchange.
Cancellations and deposits – The usual practice is the payment of a one-month deposit to reserve the property. A pre-lease contract is also signed. Early termination of the contract is generally not acceptable, and the rent paid for the remaining months of the contract is forfeited.
Furnishings and appliances – Most properties already have furnishings, however, for those not furnished, negotiations may be made to have the property furnished.
Appliances depend on the level of rental you choose. Negotiations can be made with the landlords on this matter.
Utilities and other conditions – These are not included as practiced except for Serviced Apartment. Other conditions in the contract can be negotiated with the property owner.
It is important to know the different practices in renting an apartment in Myanmar. A contract of lease is essential to support all the agreements on the lease.