A security deposit should never come down to whose memory is better. Most deposit arguments in Dubai are evidence problems long before they are legal problems: a signed inventory, dated photographs, a maintenance history, final utility bills and an itemised deduction schedule settle them faster than any argument about whether the unit was clean. This is the paperwork that protects both sides, in the order it has to exist.
When does this apply?
This applies at the end of a Dubai residential tenancy, when a tenant hands back possession and the landlord decides what, if anything, to deduct before returning the balance. It works the same for a landlord managing directly and for one working through a property manager.
It does not cover commercial leases, where bank guarantees often replace deposits and the lease governs almost everything, nor a tenanted property that changes owner mid-lease, where the question is who now holds the deposit.
What the deposit is for
A residential security deposit is held against damage and other obligations identified in the lease. It is not the landlord's income, it is not the final rent payment, and it is not a fund for upgrading the property between tenants. In Dubai, deposits are commonly 5% of annual rent for an unfurnished unit and 10% for a furnished one as market practice, taken at the start of the tenancy.
The governing law is Law No. 26 of 2007 on the relationship between landlords and tenants, as amended. Article 20 allows the landlord to take a deposit to secure maintenance obligations and requires the deposit, or the remaining balance, to be refunded when the lease ends. Article 21 requires the tenant to return the property in the condition received, save for ordinary wear and tear or damage outside the tenant's control. Deductions must therefore be tied to the contract and to evidence.
These rules and fees reflect what was published as of September 2026 and can change; verify them at the official source.
Ordinary wear and tear versus damage
The distinction is factual. Ordinary wear is the gradual deterioration expected from reasonable use; damage is broken fittings, unauthorised alterations, excessive staining, missing inventory or neglect beyond normal use. Weigh each item against:
- The age and original condition of the item, and the tenancy's length.
- The number of occupants and the permitted use.
- Whether the defect already existed at move-in.
- Whether maintenance was reported promptly.
- Whether the proposed work restores the original condition or upgrades it.
Replacing an old item with a new premium version does not justify charging the tenant the upgrade cost, and a full replacement charge is hard to defend on an item that already carried significant wear. The measure is reasonable like-for-like repair at handover, not refurbishment aimed at a higher future rent.
The move-in file decides the move-out argument
At the start of the tenancy, build the baseline: a signed condition report; dated photographs and video; an inventory of furniture, appliances, keys and access cards, with the age and condition of each significant item; meter readings; a record of existing defects; and written confirmation of any repairs the landlord promised. Store it with the lease and the Ejari certificate, not in a messaging thread.
Keep the same file going to the end, so the tenancy can be audited without reconstructing it from chat messages: lease, Ejari and deposit receipt; move-in inventory, photographs and meter readings; move-out inspection and the keys and access-card record; repair evidence, invoices and the deduction calculation; final utility bills and the refund confirmation. Without that baseline, neither side can show whether a defect is new.
Tenant move-out checklist
Four to six weeks out, review the notice, cleaning, repair and repainting clauses, book any maintenance, confirm the community's move-out procedure and find the original condition report. A 90-day written notice applies before renewal where terms are changing, and early termination follows whatever the lease says.
- Report unresolved maintenance early. Do not raise leaks, air-conditioning failures or building defects on the final day. Keep evidence of when each was reported and who was responsible for the repair.
- Restore agreed alterations. Check the approvals for paint, partitions, fixtures or drilling, complete any required reinstatement to a reasonable standard and keep the receipts.
- Clean and document. Remove belongings and photograph every room, appliance, balcony, parking space and meter, close-up and wide.
- Close the utilities. Schedule the DEWA move-out, keep the final bill and clearance certificate, and record the final meter readings before you give up access.
- Return access items against a receipt. Keys, remotes, cards, parking tags and mailbox keys, listed and signed for.
- Ask for a written settlement. An itemised statement showing the deposit received, each deduction with its invoice or quotation, and the balance due, with your IBAN.
These rules and fees reflect what was published as of September 2026 and can change; verify them at the official source.
Landlord inspection and an itemised deduction schedule
Inspect against the original report, not an ideal newly renovated condition, and record the handover date and who attended, the meter readings and access items returned, each defect and its location, whether it is wear, damage or maintenance, the estimated or invoiced cost, the amount proposed for deduction and the undisputed balance. Let the tenant comment before the report is finalised.
Present deductions as a schedule with a line for each item: the condition issue, the evidence, the basis in the lease, the invoice or quotation and the amount. Keep unpaid rent and utility claims separate from physical damage so each can be judged on its own terms. Avoid vague entries such as "general maintenance" with no evidence behind them. Where contractor access or a final invoice will take time, document an interim position with a deadline rather than leaving the whole deposit unexplained, and return the undisputed balance promptly. For next time, record item ages in the inventory, require maintenance to be reported in writing, run a documented pre-exit inspection, and state in the lease who holds the deposit and how the refund will be made.
If you disagree
Start with a written reconciliation. The tenant can ask for photographs, invoices and the contractual basis of each deduction; the landlord can ask for evidence that an issue predated the tenancy or is ordinary wear. Exchange the complete evidence and propose a settlement in writing. Pause and ask for more before paying or conceding when any of these appear: there is no signed or photographic move-in record; a deduction is a round figure with no invoice; ordinary ageing is described as tenant damage; keys, utilities or access cards were returned without a signed record; or the deposit is being withheld while the parties exchange only informal messages.
If no agreement is reached, a monetary tenancy claim can be filed at the Rental Disputes Centre. Its fee is 3.5% of the annual rent, with a minimum of AED 500 and a maximum of AED 20,000, so weigh the amount in dispute, the strength of the evidence and the cost before filing. Useful evidence: the lease, Ejari, the deposit receipt, the move-in and move-out reports, photographs, maintenance correspondence, invoices, the handover record and bank details.
These rules and fees reflect what was published as of September 2026 and can change; verify them at the official source.
What happens to the deposit, rent and Ejari when a tenanted property is sold?
A sale does not end a valid lease: Dubai's tenancy law counts the person to whom ownership transfers as the landlord, so the tenant carries on under the same contract and the buyer inherits the obligation to refund the security deposit at the end of the tenancy. The money and the paperwork must therefore move with the title, and that is where deposits get lost.
· Before completion the buyer should obtain the signed lease, Ejari certificate, addenda, the rent schedule, the deposit amount and the tenant's identification and contact record, and check any arrears before the price is finalised.
· At completion, apportion the rent at the agreed date, transfer the deposit and any post-dated cheques to the buyer with a signed handover record, and notify the tenant in writing who now holds the deposit and receives future rent.
· Ejari and the building's management records must be updated to the new landlord through the current DLD process; a tenant should keep a copy of the sale notification with the original deposit receipt.
· The buyer cannot change the rent or the terms immediately; the rental index, the 90-day renewal notice and the eviction rules apply to the new owner exactly as to the old one.
For the tenant, the safest step is a short written confirmation from both seller and buyer stating the deposit amount transferred and the date; without it, a refund claim at the end of the tenancy can turn into a dispute between two landlords.
Frequently asked questions
Must a Dubai landlord refund the deposit?
Yes. Article 20 of Law No. 26 of 2007 requires the deposit, or the balance remaining after justified deductions, to be refunded when the lease ends. What it does not do is set a fixed number of days, so the lease may state a timeframe and, where it does not, both parties should act within a reasonable period and document their correspondence.
Can a tenant use the deposit as the last rent payment?
Not unless the landlord agrees in writing. Rent and the deposit serve different purposes: one pays for occupation, the other secures the tenant's maintenance and contractual obligations. Withholding the final rent cheque against the deposit puts the tenant in arrears and can trigger the landlord's remedies under the lease, even if the deposit later turns out to exceed anything deductible.
Can a landlord deduct repainting automatically?
Not automatically. It depends on what the lease says, the condition recorded at move-in, how long the tenant occupied the property, whether the marks are actual damage or ordinary wear, and whether the work restores the original condition or improves it. A repainting clause still has to be applied to the evidence rather than charged as a standard fee at every exit.
Is a quotation enough to support a deduction?
A quotation can support an estimate, but on its own it proves nothing about who caused the problem. The condition, the responsibility, the scope of work and the reasonableness of the cost all need evidence. Where the final invoice has not yet arrived, the better practice is an interim schedule with a deadline, with the undisputed part of the deposit returned in the meantime.
What if there was no move-in report?
The outcome becomes more evidence-dependent and, usually, less predictable for both sides. Use whatever exists: dated photographs, maintenance tickets and correspondence, inventory documents, delivery notes for appliances and the utility record. A landlord asserting damage still has to show it was damage rather than ageing, and a tenant denying it benefits from anything that fixes the condition at the start.
Where is a deposit dispute filed?
Tenancy claims within its jurisdiction go to the Rental Disputes Centre, through its registration or amicable-settlement services, subject to the current documents, fees and procedure. Check what it requires before filing, because an incomplete file costs time. For anything substantial or contested, have the claim reviewed by a qualified professional first.
Bottom line
Treat the deposit as an account, not a judgement call. A recorded starting condition, a joint inspection at the end, an itemised schedule with evidence behind every line and prompt return of the undisputed balance produce the fairest result. Where the documents do not exist, build them at the start of the next tenancy rather than arguing about the last one.
Related guides
- Ejari in Dubai: How to Register, Renew and Cancel a Tenancy Contract
- DEWA Move-In, Move-To and Move-Out in Dubai: How Each Works (2026 Property Guide)
- Dubai Eviction Notice in 2026: Valid Reasons and the 12-Month Rule
Tell the Laguna Life team what you are handing over and we will set up the move-in and move-out evidence pack that makes the deposit reconciliation obvious before the keys change hands, with the official source behind every figure. Message us on WhatsApp at +971 56 100 0928 or through lagunalife.ae. Register your interest now.