UAE Property: ‘What deductions can my landlord make from the security deposit?'

The National

7 days ago

Question: What is the precise timeline for my landlord to refund my security deposit after I hand over the keys at the end of a tenancy and what exactly qualifies as 'reasonable deductions'? MB, Dubai
Answer: Under Article 20 of Dubai Law 26/2007 (as amended by Law 33/2008), landlords must refund the security deposit 'upon expiry of the rent contract '. In reality, most landlords aim to return the balance within 30 calendar days of receiving the tenant's vacate notice and cancelled Ejari certificate, though some may take longer if there are unresolved utility bills or major repairs to assess.
To balance this argument, I can also confirm that if all is OK, some landlords take much less time to return the deposit. The business relationship they had with the tenant would determine this timeframe, too.
My advice to ensure a smooth refund would be to organise a joint handover inspection by having a walk-through with your landlord or their agent on the day you return the keys. During this meeting, you should document the condition of the walls, fixtures, fittings, flooring and appliances with time-stamped photos or video.
Before receiving your deposit, secure the Ejari cancellation certificate. Without this, landlords can withhold refunds.
One of the most abused circumstances from both sides is understanding reasonable deductions.
What is allowed are repairs for damage beyond normal wear and tear (e.g., holes in walls, broken tiles, damaged cabinetry in kitchens, bathrooms, bedrooms or utility room), unpaid Dubai Electricity and Water Authority bills, A/C or municipality charges and any cleaning/repainting costs expressly outlined in your tenancy agreement. They are not allowed to charge for touch-up paint jobs, minor scuffs or fading finishes and cosmetic wear from normal occupancy.
However, the term 'normal wear and tear' is always open to interpretation, so I would advise to never have this in a contract, rather stipulate what a tenant needs to do at the end of the agreement to get the deposit back.
If deductions from a landlord seem excessive or undocumented, you may file a complaint with the Dubai Rental Dispute Settlement Centre within 30 days of vacating. The RDSC typically processes these cases in two to four weeks, mediating between tenant and landlord to arrive at a fair amount.
By proactively documenting the property's condition and knowing your rights around Ejari and the Real Estate Regulatory Agency, you can minimise delays and avoid unfair write-offs.
Q: Late last year, we purchased an off-plan two-bedroom apartment in One by Binghatti through a marketing agent. It's on level 46 looking towards the Burj Khalifa and has 1,572 square feet, including the extra-large balconies. There will also be a plunge pool on the balcony.
We intended to keep the unit post-handover in December 2026 and rent it out, but our plans have changed. In a few days, we will have paid the 40 per cent that will allow us to sell the property, as per the developer's contract.
What would be a fair sale price for the property today? The agent we purchased through advised that the best gains will be realised at handover, but paying 60 per cent of the purchase price before handover is too much of a stretch. Should we consider travelling to Dubai to obtain our golden visa and refinance with a local bank loan?
We understand that in Dubai, the buyer pays the agent's commission, but our agent is proposing to charge 2 per cent to both the buyer and the seller (us). His explanation is that he would devote enough time to getting the best result. Should we accept his proposal or shop around? Jo, Sydney
Watch: What is Dubai's first-time home ownership scheme?
A: I checked online and there appears to be several available units at One by Binghatti starting at just over Dh3.5 million ($953,029), with others at Dh3.6 million, Dh3.8 million, a few at Dh4.5 million and even one at Dh4.8 million.
Given the difference in price, I can only assume the view is making a difference. Based on these, I think the right price should be in the region between Dh3.6 million to Dh3.7 million.
When the developer still has inventory, it makes it harder to sell an off-plan secondary property because buyers tend to prefer buying as the first sale, so this can be challenging.
If you can hold the unit, you will see the most appreciation at the point of handover, so in terms of financing the remaining 60 per cent, this is possible even as a non-resident and you get to apply for the golden visa.
Lastly, it isn't illegal for an agent to charge both the buyer and the seller, the norm being 2 per cent from each, as long as all parties are aware and have agreed to it. The agent will be more invested if the fee is 4 per cent rather than 2 per cent and would mean they can also work with other agents and still get the minimum commission of 2 per cent.