With more than half of the population in Mongolia’s capital and largest city Ulaanbaatar living in traditional ger dwellings, supply of modern rental accommodation is limited, though ongoing development is starting to change this. Available rental properties in Mongolia tend to be apartments, though it is increasingly possible to find villas and townhouses to rent. On the other hand, if you’re interested in a deep dive into the traditional culture of Mongolia it is also possible for foreigners to find short-term accommodation within a traditional ger dwelling.

Regions in brief
Ulaanbaatar is split into nine administrative districts called düüregs, each with their own local governor and support staff.

The largest district is Bayanzurkh, covering an area of 1,236 sqkm on the city’s east. Rental prices in Bayanzurkh tend to be lower than other comparable districts, though fewer expats can be found here, compared to Sukhbaatar and Khan-Uul districts. 

The Sukhbaatar District, a 211 sqkm area in the centre of the city, and its 92 sqkm neighbour Chingeltei District, are popular with both locals and expats alike, drawn to the central location, entertainment options, work spaces and eateries as well as government offices.

The Khan-Uul district, to the south, is known for its high-end properties, particularly those near the Stadium and Zaisan areas. Detached houses, international schools and the clear air and activities of the Bogd Khan National Park make this area popular with families. 

Agencies
Though it is possible to find a rental property directly, there are a number of reasons that using the resources of a reputable real estate agency might be worth your while. Most real estate agencies do not charge buyers or tenants. In most transactions, the lessor or the seller pays commissions and/or fees. English is less widely spoken than in other countries in Asia, so a local agent can help bridge any language gap as well as provide a bilingual copy of the tenancy agreement. If your apartment is not fully furnished, you can ask your agency for help buying or renting furniture, and they can help with utilities accounts and trade people. 

Tenancy agreement
Rents are quoted in MNT and are payable monthly in advance. A typical lease term is between 1 and 3 years long, with 4–10 years for larger tenants. Typically a rent deposit of three months gross rent is payable by the tenant in advance.  Security of tenure only applies for the duration of the tenancy, with no guarantee beyond the original lease term. Unless an option to renew is agreed by the landlord or specified in the lease, tenants do not usually have statutory rights to renewal. Increases in rates or rent reviews are based on open market rental value and generally occur at lease renewal, though rates may be reviewed at any time if market rents have substantially increased or decreased. 

Service charges, operating costs, repairs and insurance 
Responsibility for utilities is generally open to negotiation, but the landlord is responsible for fees such as heating, water and apartment owners’ association. Usually the apartment owners’ association or landlord is responsible for internal repairs. Building insurance is rarely required, but is the landlord’s responsibility.

Electricity, communication and Internet consumption are payable by each tenant. Where parking is available, it is held under a separate monthly lease for an additional rent, though if you have a car, consider whether you want to park outside in temperatures that can hit minus 30-40 Celsius at night in winter!

Disposal of leases 
Early termination by the tenant is subject to the landlord’s approval, with one month’s written notice and subject to penalty payment. Subletting by tenants is usually not permitted. At lease end tenants should leave the property in original condition, allowing for wear and tear – major damage cost will be deducted from the deposit.

Short-term rentals
With only 21% of Mongolians using the Internet according to World Bank data, websites such as Airbnb have only a small presence in the country. However, this is changing, and short-term rentals for apartments, studios or even ger accommodation can be found online. Serviced apartments are also available, usually connected to a travel company such as Tsolmon. 

Source: Mongolian Properties Real Estate Guide 2017
Jones Lang Lasalle Mongolia Property Investment Guide
World Bank

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