Rental Dispute Dubai: How to Resolve a Tenancy Dispute Through the Rental Dispute Center

The security deposit is one of the most common sources of friction between landlords and tenants in Dubai. With rental deposits typically ranging from 5% to 10% of the annual rent, it is a significant sum that tenants are keen to recover. Though, many are unsure about the rules governing deductions.

You can see the law clearly in Article 20 of Law No. 26 of 2007, which says: a landlord has the right to deduct from the rental amount the expenses of restoration or maintenance due to damage caused by the tenant. We need to know the difference between legal and illegal deductions.

What is a Security Deposit, and Why is it Needed in Dubai?

A security deposit, rental deposit, or good-faith deposit is a lump-sum amount of money paid in advance of a tenancy in Dubai. It is not used in lieu of a rent payment. Instead, it is used as a security against possible damages or liabilities that are excessive to normal wear and tear, which could include unpaid rent, unpaid utilities and damage to the property.

The standard deposit in Dubai is a certain percentage of the annual rent, which is 5% for unfurnished and up to 10% of the rent for furnished apartments, although these figures are not legally stipulated, but are standard in the Dubai rental market.

Is a Security Deposit Refundable in Dubai?

A security deposit is actually refundable in Dubai. At the end of the contract, the landlord has to reimburse the full or partial deposit as per the tenancy law. Unless, there are valid, documented deductions for unpaid dues or damage caused by the tenant, it is not a sum the landlord can simply retain.

What Deductions Are Legally Permitted in Dubai?

Under Dubai’s tenancy law the amount a landlord can deduct from a security deposit is limited to provable financial loss – “loss and damages” will not suffice. It is the landlord’s task to provide that the loss is valid, with supporting evidence like bills for repair work.

Unpaid Rent and Utility Bills

One of the simplest and most common deductions is for any unpaid rent.

When a tenant leaves a property with rent outstanding, the landlord has the right to claim the outstanding sum against the security deposit. This also applies to any utilities like DEWA or chiller charges that are unpaid and fall under the tenants’ responsibility as per the rental agreement – this can also be deducted from the deposit.

Cleaning and Maintenance Costs

A lease agreement typically calls for the tenant to return the property in a clean condition. If the property is left a lot dirtier than when it was originally handed over, the landlord may deduct the cost of professional end-of-tenancy cleaning. This applies only if the cleanliness falls below a reasonable standard and does not cover minor, everyday tidiness. Routine maintenance remains the landlord’s responsibility.

Damage Beyond Normal Wear and Tear

The most contentious section of the Dubai security deposit deduction list is repairs. A landlord can charge for fixing something that the tenant broke or damaged. For example, a door that won’t close properly or a giant stain on the carpet can be deducted from the security deposit. But a landlord cannot deduct to cover “ordinary wear and tear”. An example is paint that has faded or a hole in the wall from a light fixture.

What Can a Landlord NOT Deduct From Your Deposit?

Also, the last thing you need to know is the non-deductible list. If you have found and discussed the terms and conditions of your agreement, you need to familiarize yourself with the list of unlawful deductions from rent Dubai community members like to rake up in forums like Reddit’s r/dubai.

• Ordinary Wear and Tear: The law clearly protects tenants from being charged for normal wear and aging. A landlord cannot charge you for repainting the entire apartment simply because the paint has naturally faded over several years of tenancy. Such maintenance costs are considered the landlord’s responsibility for preserving the property.
• Damage on entry: Damage that was present before you moved into the property should not be your burden. That’s the purpose of a move-in condition report and photographs with a date — they enable you to counter any charges for pre-existing damage.
• Routine Maintenance: routine upkeep tasks, such as servicing the air conditioning system or repairing a leaking pipe (except when caused by tenant negligence), fall under the landlord’s responsibility. These expenses cannot be charged to the tenant by withholding from the security deposit.

The Importance of Proof and Process for Deductions

A valid deduction must be prove-able. The landlord can’t simply withhold a lump sum. The move-out inspection, where the property is compared to the move-in report, is essential in this process. Be present at the move out inspection and take photographs of the condition of the property.

Request from the insurer a written, itemised list of each deduction that is being made. This should be a statement showing the original item damaged or the debt that is outstanding and the invoice or receipt for the cost of the repair or service.

This documentation is your right and is required to sort out the problem objectively.

What Are Your Options if the Deduction is Unfair?

Prove your case If you feel your landlord is making an unreasonable or undocumented deduction, you’ve got a strong legal claim. The initial step you need to take is to (attempt to) sort out the matter in the first place by referring to the itemised bill with your landlord, using your move-in condition report and photographs as proof.

If unsuccessful, you have the option of submitting a case to the Rental Dispute Centre (RDC), a specialised tribunal governed by the Dubai Land Department. The RDC resolves tenancy disputes, such as security deposit claims. You can submit your case online or in person, resulting in conciliation and potentially a judgment.

Landlord Not Returning Deposit Dubai: Steps to Take

If the landlord simply refuses to return the money, the procedure is the same but you will have to prove that you have met all your responsibilities. And this is where a paper trail can be extremely helpful.

The recovery process involves:

1. Go over Your Contract: Double check the clause that states the amount of the deposit, as well as how soon you will get a refund.
2. Putting together Your Evidence: Collection of move-in condition report, dated photos of property at handover and correspondence with landlord.
3. Formal Demand: Send the landlord a written or email demand demanding the immediate return of your security deposit based on your proof.
4. Must I sue the Landlord? You may have to pursue a civil case in court.
5. Filing An RDC case: where the landlord still is not agreeable, lodge a formal complaint at the Rental Dispute Centre.

If you require assistance in these processes, professional bodies and companies like Shubh Labh Realtors are there to help, and can advise and assist at every stage of the proceedings so that no disputes arise.