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Hi Dubai
17-03-2025
- Business
- Hi Dubai
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 around the security deposit I had given 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. : 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
Khaleej Times
16-03-2025
- Business
- Khaleej Times
Dubai property: When should landlords refund security deposits to tenants in full?
Question: I am planning to move out of my Dubai apartment soon. I wish to understand the rules around the security deposit I had given 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, a landlord may have to refund the security deposit collected from a tenant at the time of vacating a rented apartment under Article 20 of Law No. 26 of 2007 Regulating the Relationship Between Landlords and Tenants in the Emirate of Dubai, which states: 'When entering into a rent contract, a landlord may collect from the tenant a security deposit for the purpose of maintenance of the real property upon the expiry of the rent contract. The landlord must refund this deposit or the balance thereof to the tenant upon expiry of the rent contract.' It is an obligation of a tenant to hand over a rented property in good condition to a landlord at the time of vacating it except for reasonable wear and tear and for reasons beyond the control of a tenant. This is in accordance with Article 21 of the Dubai Rent Law, which states: 'Upon expiry of the term of the rent contract, the tenant must surrender possession of the real property to the landlord in the same condition in which the tenant received it at the time of entering into the rent contract, except for ordinary wear and tear or any damage sustained due to the reasons beyond the tenant's control.' However, if the tenant caused certain damage to the property beyond reasonable wear and tear, the landlord may retain the security deposit in part or in full to rectify such damage caused by the tenant. If a tenant does not cause damage, a landlord should refund the security deposit in full in accordance with the provisions of the tenancy agreement between the tenant and the landlord.
