Mongolia Rental Laws: Pro-landlord, Neutral or Pro-tenant?
Mongolia landlord and tenant laws are judged by the Global Property Guide to be slightly Pro-Tenant between landlord and tenant. While Mongolia’s system is designed to be fair, the combination of judicial caution, procedural requirements, and tenant protections means it can be seen as somewhat pro-tenant, especially in urban residential contexts. However, this can vary depending on the specifics of the lease, the parties involved, and whether the property is residential or commercial.
Rents: Can landlord and tenant freely agree rents in Mongolia?
In Mongolia, landlords and tenants have the freedom to negotiate and agree on rent without any legal restrictions on the amount. The Civil Code permits parties to set rental terms independently, with Article 319.1 stating that rent may be paid “in cash or in another agreed form,” underscoring this flexibility. While the law supports broad contractual freedom, it is advisable to clearly define key terms in the lease—such as payment schedules, currency, and conditions for rent adjustments—to help prevent future disputes.
Deposits
There is no legal limit on how much a landlord can ask for as a deposit. The amount is generally based on what both parties agree to in the lease contract, which is governed by the country’s Civil Code. In practice, most landlords typically request a deposit equal to one to three months’ rent. However, in certain situations—especially when renting furnished apartments or leasing to expatriates—landlords may ask for six months to a full year of rent in advance. This is not uncommon, particularly in high-demand areas or for short-term leases.
What rights do landlords and tenants have in Mongolia, especially as to duration of contract, and eviction?
Lease agreements can be set for either a fixed term or an indefinite period. If the lease expires and the tenant continues to occupy the property without objection from the landlord, the lease is considered automatically extended under the same conditions.
Termination of a lease requires proper legal grounds and advance notice. Typically, either party must give at least three months’ notice before ending the lease unless the contract states otherwise. Acceptable reasons for termination include non-payment of rent, repeated violations of the lease terms, the landlord’s personal need for the property, or refusal by the tenant to accept a reasonable rent adjustment.
Eviction is only legal with proper justification. Common reasons include unpaid rent or serious breaches of the lease. However, landlords cannot evict tenants on their own—they must first obtain a court order. If the court grants eviction, a bailiff enforces the order, and a formal notice with a date and time must be provided to the tenant. If the tenant does not comply, their property may be removed.
Legislation
In Mongolia, landlord-tenant relations are primarily governed by the Civil Code of Mongolia, specifically the sections dealing with lease agreements and property rights.
How effective is the legal system in Mongolia?
While the legal framework exists and generally functions, in practice, the eviction process can be slow and unpredictable. Court dockets, particularly in major cities like Ulaanbaatar, are often overloaded, and it can take weeks or even months for a case to move forward. Even after a favorable ruling, landlords may face additional delays waiting for the bailiff to act. Enforcement can be inconsistent, especially when vulnerable individuals, such as children or elderly tenants, are involved. In such cases, bailiffs may hesitate to enforce eviction orders strictly or without additional negotiation.
History: Recent changes in landlord and tenant law in Mongolia
In December 2023, Parliament enacted several important amendments to the Land Law, with many of these provisions taking effect in mid-March 2024. These changes expanded the definition of “land for special needs,” giving the government greater flexibility to reallocate land for public purposes. Additionally, a national electronic system for land management was introduced, which makes information on land ownership, boundaries, and lease terms accessible to the public. To further improve the handling of land disputes, especially those related to redevelopment projects, a Land Dispute Resolution Board was established in Ulaanbaatar to resolve local conflicts more efficiently.
In early 2025, the Cabinet approved a draft revision of Mongolia’s 2006 Leasing Law. The proposed reforms seek to clarify the legal definitions and responsibilities within lease contracts, simplify the procedures for transferring rights and obligations, and improve overall regulatory clarity. Additionally, the changes aim to increase flexibility in leasing arrangements to better support the expanding rental market.
