Security Deposit (Dubai)
A security deposit in Dubai is a sum of money — typically 5% of annual rent for unfurnished properties and up to 10% for furnished properties — paid by the tenant to the landlord at the start of the tenancy. The deposit is held as a safeguard against unpaid rent or property damage beyond normal wear and tear. At the end of the tenancy, the landlord must return the deposit or provide an itemised list of deductions within a reasonable period.
Law No. 26 of 2007, Article 20; RERA Circular on Security Deposits
“The tenant shall return the property to the landlord upon expiry in the condition it was received, allowing for normal wear and tear.”
In Depth
Dubai's tenancy law does not specify a single mandatory maximum for security deposits, but the market convention established by RERA guidance is 5% of annual rent for unfurnished properties and up to 10% for furnished ones. Landlords who demand more than these amounts may be challenged at the RDSC.
The security deposit may only be used by a landlord to offset: unpaid rent owed at the end of the tenancy; documented repair costs for damage to the property that goes beyond normal wear and tear; and cleaning costs if the property is returned in a significantly dirtier condition than it was handed over.
Normal wear and tear — the gradual deterioration expected from ordinary use — cannot be charged against the deposit. This includes minor scuffs on walls, faded paintwork after a multi-year tenancy, and worn carpets. Contested items (e.g. whether a wall needs repainting) frequently become the subject of RDSC disputes.
A property handover report — signed by both parties at the start and end of the tenancy — is the most important document in any deposit dispute. A report confirming the condition at check-in establishes a baseline; if the landlord cannot prove the damage existed at check-out (not check-in), the deposit deduction is likely to fail at the RDSC.
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