Security Deposits in Dubai: Rules, Deductions, and Refunds

Security deposits are one of the most frequently disputed elements of Dubai tenancies, largely because the line between legitimate damage deductions and normal wear and tear isn't always obvious to either party, making it worth understanding the specific rules clearly before move-in and move-out both.

The standard security deposit in Dubai is 5% of annual rent for unfurnished properties and 10% for furnished properties, though specific amounts can vary somewhat by landlord and property type. Once the tenancy ends, the landlord must return the deposit within 30 days, and any deductions need to be justified by genuine damage beyond normal wear and tear or unpaid utility bills, meaning routine issues like minor wall scuffs, small nail holes, or paint fading from sunlight generally don't qualify as deductible damage under standard practice, regardless of how a landlord might initially characterize them.

Building strong documentation from the very start of a tenancy meaningfully protects a tenant's deposit at move-out: taking timestamped photos or video of every room at move-in, ideally with a formal condition report both parties sign, creates a clear "before" baseline that makes any later dispute about deduction fairness considerably easier to resolve in the tenant's favor. At move-out, repeating this same documentation process, timestamped photos of every room, close-up shots of common dispute areas like kitchen counters and bathroom sealant, and final utility meter readings, creates the "after" comparison that substantiates a tenant's position if a landlord attempts an unjustified deduction. Given how deposit disputes are among the most common issues reaching the Rental Disputes Centre, and given how landlords are generally expected to justify any deduction with itemized invoices and documented evidence rather than a vague damage claim, tenants who maintain this kind of organized documentation throughout their tenancy are considerably better positioned to recover their full deposit, or successfully dispute an unfair deduction, than tenants who never created a clear record in the first place.