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Comparison

Furnished vs Unfurnished Tenancy in Dubai: Key Legal Differences

Whether your Dubai tenancy is furnished or unfurnished has practical implications for your deposit, your handover obligations, and the scope of maintenance disputes. Understanding these differences before signing is essential.

A

Furnished Tenancy

A tenancy where the property is let with furniture, appliances, and fittings included as part of the lease.

B

Unfurnished Tenancy

A tenancy where the property is let without furniture — the tenant provides all moveable items.

Feature-by-Feature Comparison

Feature
A — Furnished Tenancy
B — Unfurnished Tenancy
Security Deposit Limit
Up to 10% of annual rent (market convention for furnished, reflecting higher value at risk)
Up to 5% of annual rent (market convention for unfurnished)
Handover Report Complexity
More complex — must document furniture condition, appliance functionality, inventory items
Simpler — covers building fabric, fixed fittings, and installed systems only
Tenant Maintenance of Furniture
Tenant responsible for reasonable care of furniture; landlord responsible for structural items
No furniture to maintain — simpler division of responsibilities
Dispute Frequency
Higher — furniture damage and appliance condition disputes are common at move-out
Lower — disputes focused on building fabric wear and tear
RERA Index
Some RERA Index categories distinguish furnished from unfurnished; verify correct category
RERA Index has specific unfurnished unit categories — use the correct one
Maintenance Responsibilities
Landlord responsible for structural/mechanical items; furniture maintenance split between parties
Landlord responsible for all structural/mechanical items; simpler split
Typical Rent Premium
15–30% premium over equivalent unfurnished unit
Base rent without furniture premium

Which to Choose — By Scenario

Short-term (1-year) tenancy for expat arriving in Dubai

Furnished tenancies suit shorter stays — lower upfront cost despite higher rent, as the tenant avoids furniture purchases.

A wins

Long-term tenancy (3+ years) for established resident

Unfurnished tenancies typically have lower rent, lower deposit, and simpler exit — better for long-term residents with their own furniture.

B wins

Minimising deposit dispute risk

Unfurnished tenancies have a simpler handover scope — fewer items to dispute at move-out.

B wins

Verdict

Neither furnished nor unfurnished tenancies are inherently better — it depends on the tenant's circumstances, length of stay, and priorities. What matters most from a legal perspective is that the handover report at move-in is comprehensive (more so for furnished units), the deposit is proportionate to the convention for the furnishing type, and both parties understand the maintenance division from the outset.

Frequently Asked Questions

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