In the Dubai rental market, the security deposit—typically 5% of the annual rent for unfurnished properties and 10% for furnished ones—is a frequent point of contention. While the law is clear that this amount should be refunded upon the expiry of the lease, many tenants find themselves facing unfair deductions or outright refusals.
The Legal Framework for Refunds
According to Article 20 of Law No. 26 of 2007, the landlord may obtain a security deposit to ensure the maintenance of the property, but they are legally obligated to refund it (or the remainder) upon the expiry of the lease. The most common dispute arises from the definition of “Wear and Tear” versus “Damage.”
- Normal Wear and Tear: Faded paint, minor scuffs on the floor, or aging of appliances are part of the natural life cycle of a property. A landlord cannot legally deduct for these.
- Actual Damage: Broken windows, holes in the wall from heavy shelving, or deep stains in the carpet are considered damage, and the cost of repair can be deducted.
The “Move-In” and “Move-Out” Report
The best way to secure your deposit is through documentation. In 2026, the Dubai REST App allows for digital check-in reports. Always take time-stamped photos and videos of the property before moving in. When you move out, ensure you provide the landlord with copies of all final utility bills (DEWA, Empower/Chiller) and a clearance certificate.
Filing a “Performance Order”
If a landlord refuses to return the deposit despite you fulfilling all obligations, you can file a case at the Rental Disputes Center (RDC). Unlike a standard litigation case, you can often apply for a “Performance Order,” which is a faster mechanism specifically designed to return undisputed funds.
How DY Legal Consultants Will Help
Recovering a deposit can sometimes cost more in time and legal fees than the deposit itself is worth. This is where we come in. DY Legal Consultants offers a streamlined service to:
- Draft Legal Demands: A formal letter from a Real Estate Lawyer in Dubai often prompts a landlord to settle immediately without the need for court.
- Evidence Review: We help you compile your photos and reports into a legally admissible format for the RDC.
RDC Filings: We handle the filing of the “Performance Order,” ensuring all administrative fees are managed correctly and that your claim is processed with maximum speed.
