MUSCAT: Even as the authorities have eased the lockdown measures, a growing chorus of voices in Muscat --from both commercial and residential -- is the non-availability of funds to pay rents.
Due to the lockdown, most businesses were closed, jobs affected and financial transactions coming to a near halt. As a result many tenants have been left without any livelihood.
“The debt resulting from non-payment of rent is mounting. In the first month of the lockdown, I had managed to pay from the balance cash that I had. Now I am struggling to empty even to feed my workers", said Abdul Rahman, owner of a textile shop in Ruwi. He is one among many small-time businessmen in the capital city who are struggling to pay rent after their businesses remained closed as part of the measures put in place to prevent the spread of COVID-19.
The situation is no different with residential tenants; several of them are not able to pay as their paying capacity has exhausted.
"How will I pay the rent when I am not getting a salary from the company", asks Cyril Mathew who works as a supervisor for a construction company. “To go a month without salaries would be very stressful as we have to pay rent and other bills. Fortunately, my landlord is sympathetic, allowing me to pay in later months. But how can I when my job itself is at stake".
For small businesses that haven't found ways to sell products and services through online channels or other means, paying the rent is difficult in the current situation.
“Even if the lockdown is fully lifted, the customer flow will not be the same as it was before the outbreak of the coronavirus. Chances of business recovery in the near future look grim", said Martin Gomez, who runs a tailoring shop.
Meanwhile, following an appeal from the Oman Chamber of Commerce and Industry, a few owners of commercial centres, landlords and real estate companies agreed to waive, reduce or defer rents.
“My house owner, understanding my situation, gave me a one-month waiver for May. But I do not know how I will pay this month", said Haris Mohammed, who runs a mobile shop.
Experts familiar with the situation say this is a nightmare for both landlords and tenants alike.
“This is an exceptional situation that we are witnessing. The vast majority of private landlords own one or two properties, many with mortgages and they too will be facing the same challenges of job losses", said Hamed al Lawati, a real estate investor.
He said that there are high net worth landlords who can reduce or write off rentals, but most landlords rely on the rental income to survive.
Still he advised that the situation may not be used as an excuse to avoid paying rent.
According to Hamed, for tenants with a history of accumulated arrears or delayed payment, it is better to accept the situation and work with the landlords to chalk out a plan for the payment till things return to normal.
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