Dubai’s tenancy law is clear: the deposit must be returned. It is much less clear about everything else. There’s no legal definition of wear and tear, no cap on what can be deducted, and no deadline for the refund. Those gaps are where the arguments live.
The scale of the rental market makes this a common problem rather than a rare one. The Dubai Land Department registered 1.38 million tenancy contracts in 2025 worth AED 126.4 billion, with more than 513,000 of those being new contracts. Each one ends eventually, and every ending involves a deposit.
What the Law Actually Says
Two articles of Law No. 26 of 2007, as amended by Law No. 33 of 2008, govern the deposit.
- Article 20 allows a landlord to take a security deposit to guarantee the property’s maintenance. It obliges the landlord to refund it, or the balance remaining after legitimate deductions, when the contract ends.
- Article 21 requires the tenant to return the property in the condition it was received, allowing for normal wear and tear and for damage outside the tenant’s control.
Read together, they set a simple principle: the deposit covers the gap between the condition the property was handed over in and the condition it comes back in, minus fair wear and tear. Anything beyond that gap isn’t a legitimate deduction.
This is general information, not legal advice. Confirm a specific position with a qualified legal advisor or the Rental Disputes Settlement Center.
How Much Is the Deposit, and Is 5% a Rule?
No. Law No. 26 of 2007 authorizes a deposit but sets no percentage and no cap.
The familiar figures, around 5% of annual rent for an unfurnished property and around 10% for a furnished one, are market convention rather than statute. The binding number is whatever the signed tenancy contract states, which is why you should read the deposit clause before signing, not after.
The Two Deposits People Confuse
Most tenants in Dubai pay two separate refundable deposits, held by two different parties and refunded through two different processes.
- The landlord’s security deposit, set by the tenancy contract and refunded by the landlord or their managing agent under Article 20.
- The DEWA security deposit, AED 2,000 for an apartment and AED 4,000 for a villa, is held by DEWA and automatically adjusted against the final utility bill when the account closes.
The DEWA deposit is largely automatic. Once the final bill is settled, the bank refunds any balance by transfer or collection, and issues a clearance certificate to share with RERA. The landlord’s deposit requires a conversation.
One practical point is who holds the money. A managing agent often holds and processes the landlord’s deposit, but the legal duty to refund it under Article 20 sits with the property owner. If an agent stalls, you can still file a claim against the owner.
What Can Be Deducted, and What Can’t
A landlord can deduct for damage beyond normal use, unpaid rent or utilities, and proven breaches of the tenancy contract. Each deduction must be supported by concrete evidence: photographs, invoices, quotations.
Generally deductible:
- Holes, cracks or impact damage to walls, doors or fittings
- Broken or missing fixtures, appliances or keys
- Unauthorized alterations that have to be reversed
- Deep staining or damage to flooring beyond ordinary use
- Outstanding DEWA, cooling or service charges attributable to the tenancy
Generally not deductible:
- Faded paint and minor scuffs from ordinary occupation
- Carpet or flooring worn from normal foot traffic
- Small nail holes from hanging pictures, where the contract permits them
- Routine servicing the landlord would owe anyway, such as annual AC maintenance
- General repainting simply because a tenancy has ended
The line between the two lists is use versus abuse. A wall that looks tired after three years is wear. A wall with a doorknob-shaped hole in it is damage. Where a landlord did not document the property’s condition at move-in, the practical burden of proving a deduction sits with them.
A deposit dispute is an evidence contest. Whoever documented the property better usually wins it.
The Move-Out Sequence That Protects the Deposit
Deposits are recovered by process, not by argument. The order matters, because each step depends on the one before it.
- Give notice in line with the contract, and confirm the move-out date in writing.
- Book a joint move-out inspection with the landlord or managing agent, and attend it. A signed inspection report listing agreed deductions, or confirming none, is the single most useful document in the process.
- Photograph and video everything, dated, on the day you empty the property. Compare against move-in records if they exist.
- Close the DEWA account through DEWA’s move-out service, settle the final bill, and keep the clearance certificate. Deactivation and the final bill typically follow within 24 working hours of the requested disconnection.
- Settle chiller or district cooling accounts billed separately from DEWA, since these are a frequent source of late deductions.
- Cancel the Ejari registration. This requires the landlord’s cooperation, and can be done digitally through the Dubai REST app or at a Real Estate Services Trustee Centre.
- Request the refund in writing, attaching the inspection report, the DEWA clearance certificate, and the Ejari cancellation.
Ejari cancellation is worth understanding, because it cuts both ways. A tenant can’t register a new Ejari elsewhere while the old one is active, and a landlord can’t lease the property to anyone new either. That shared incentive is usually enough to get an unresponsive landlord moving.
| MARKET INSIGHT
Dubai’s tenancy law contains three deliberate silences on deposits: it does not define the boundary between wear and tear and damage, it does not cap the amount that may be deducted, and it does not set a deadline for the refund. Article 20 requires a refund upon expiry of the contract without specifying several days. That is why documentation carries so much weight. Where the parties have no dated record of condition, the Rental Disputes Center is left comparing two accounts of the same apartment. The most effective protection costs nothing and happens at the start of a tenancy: a signed move-in condition report, with photographs, attached to the contract. Tenancies that begin with one rarely end in a deposit dispute. |
When the Landlord Goes Quiet
Escalate in stages, and keep every step in writing.
Start with a formal written demand to the landlord, attach the move-out documentation, and request either the refund or an itemized breakdown of deductions with supporting evidence. Give a clear, reasonable deadline. Many disputes end here, because a landlord asked to produce invoices often finds the deduction harder to justify than to drop.
If that fails, the Rental Disputes Settlement Center has exclusive jurisdiction over tenancy disputes in Dubai. Decree No. 26 of 2013 established it as the judicial arm of the Dubai Land Department, and filing fees are calculated as a percentage of the amount claimed, subject to a minimum and a maximum. Confirm the current fee schedule on the RDC website before filing, because a small deposit claim can carry a fee worth weighing against the sum in dispute.
How KAIZEN Handles Deposits and Move-Outs
KAIZEN has managed property in the UAE since 2006 as a RERA-registered manager, with occupancy across the managed portfolio running above 95% and a customer satisfaction score of NPS 68+.
Under unit management, move-in and move-out inspections are standard, not optional; deposits are held and reconciled against a documented condition report; and deductions are itemized with evidence rather than asserted. Ejari registration and cancellation, DEWA coordination, and final settlement run as part of the same process.
That matters to both sides of the tenancy. Residents get a deposit returned on a documented basis rather than a disputed one. Landlords get deductions that hold up if challenged, and a unit released for re-letting without an Ejari left open behind it. Across a portfolio, property management applies the same discipline to every unit.
Frequently Asked Questions
How much is a security deposit in Dubai?
Law No. 26 of 2007 authorizes a deposit but sets no percentage or cap. Market convention is around 5% of annual rent for an unfurnished property and around 10% for a furnished one, but the binding figure is whatever the signed tenancy contract states.
How long does a landlord have to return the deposit?
The law requires the refund upon expiry of the contract but does not set a specific timeframe. Because there is no statutory deadline, a written request with a clear timeframe, supported by the move-out inspection report and DEWA clearance certificate, is the practical way to hold a landlord to it.
What counts as normal wear and tear?
Dubai law does not define it. In practice, it covers deterioration from ordinary use, such as faded paint, minor scuffs, and flooring worn by normal foot traffic. Damage beyond ordinary use, including holes, breakages, and unauthorized alterations, is deductible.
Is the DEWA deposit the same as the landlord’s deposit?
No. They are separate. The DEWA deposit is AED 2,000 for an apartment and AED 4,000 for a villa, held by DEWA and adjusted against the final utility bill when the account closes. The landlord’s security deposit is set by the tenancy contract and refunded separately by the landlord or their managing agent.
What if the landlord refuses to refund the deposit?
Send a formal written demand requesting either the refund or an itemized breakdown of deductions with supporting evidence. If that fails, file a claim at the Rental Disputes Settlement Center, which has exclusive jurisdiction over tenancy disputes in Dubai. Filing fees are a percentage of the amount claimed, so check the current schedule on the RDC website first.
