Understanding Security Deposit Refund Rules in Dubai
Question:
I am planning to move out of my Dubai apartment soon. I wish to understand the rules around the security deposit I had given when I moved in. Does the owner have the right to deduct anything from that amount? If so, what are the reasons for which he can do so?
Answer:
In Dubai, landlords are required to return the security deposit collected from tenants when they vacate the property. This is governed by Article 20 of Law No. 26 of 2007 Regulating the Relationship Between Landlords and Tenants in the Emirate of Dubai, which states:
“When signing a rental contract, a landlord may collect a security deposit from the tenant for the purpose of property maintenance upon the contract’s expiration. This deposit, or any remaining balance, must be refunded to the tenant at the end of the lease.”
Additionally, Article 21 of the Dubai Rent Law specifies that tenants must return the property in the same condition as received, except for normal wear and tear or damage beyond their control. The law states:
“Upon expiry of the rental contract, the tenant must return the property in the same condition as when it was received, except for ordinary wear and tear or any damage caused by factors beyond the tenant’s control.”
However, if the tenant has caused damage beyond reasonable wear and tear, the landlord has the right to retain part or all of the security deposit to cover repair costs.
If no such damage is found, the landlord must refund the security deposit in full as per the terms of the tenancy agreement.
