Dubai: When Are Landlords Required to Refund Security Deposits in Full to Tenants?

Question: I am planning to move out of my Dubai apartment soon. I wish to understand the rules regarding the security deposit I gave 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 refund the security deposit collected from tenants upon vacating the apartment, as stated in Article 20 of Law No. 26 of 2007, which governs landlord-tenant relations in the emirate. The law mandates that a landlord must refund the full deposit or any remaining balance to the tenant after the lease ends.

However, tenants are obliged to return the rented property in good condition, barring normal wear and tear and damages beyond their control, as per Article 21 of the Dubai Rent Law. If a tenant leaves the property in a condition beyond reasonable wear and tear, the landlord may deduct the necessary amount from the deposit to cover the repair costs.

Common reasons for security deposit deductions include:

• Damage to property: If the tenant has caused harm to the apartment or its fixtures, the landlord can deduct repair costs.
• Unpaid bills: If utility bills or other charges remain unpaid, the deposit may be used to settle these dues.

If there is no damage beyond normal wear and tear, landlords are obligated to refund the full security deposit as per the tenancy agreement.

News Source: Khaleej Times