Security Deposits & Return

Source: Federal Law No. 5 of 1985 (Civil Code); Dubai Law No. 26 of 2007; customary rental practice

Written in plain language for general understanding. This is educational content, not legal advice. Based on UAE federal decrees, laws, and ministerial decisions.

UAE Federal Law

What is this right?

Most UAE landlords require a security deposit at the start of a tenancy:

  • Typical amount: Security deposits are usually 5% of annual rent for unfurnished properties and 10% for furnished properties. These are customary amounts, not set by law.
  • Purpose: The deposit covers unpaid rent, damages beyond normal wear and tear, or unpaid utility bills.
  • Return: The landlord must return the deposit (minus legitimate deductions) when you move out and hand over the property in good condition.
  • Normal wear and tear: The landlord cannot deduct for normal ageing of the property — faded paint, minor scuff marks, and general wear are your landlord's responsibility.

When does it apply?

  • You paid a security deposit at the start of your tenancy.
  • Your lease is ending or you are moving out.
  • The landlord wants to make deductions from your deposit.

What should you do?

  • Document the property's condition with photos and video when you move in and when you move out.
  • Request a detailed written statement of any deductions the landlord wants to make.
  • If the landlord refuses to return your deposit, file a case with the Rental Dispute Settlement Centre.
  • Get a receipt for the deposit when you pay it, and note the amount in your tenancy contract.

What should you NOT do?

  • Do not pay a deposit without getting a receipt — you need proof of payment.
  • Do not accept unreasonable deductions — normal wear and tear is not your responsibility.
  • Do not forget to clear your utility bills before moving out — DEWA or other utility debts can be deducted from your deposit.

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