Dubai property: When should landlords refund security deposits to tenants in full?

Question: I am planning to move out of my Dubai apartment soon. I wish to understand the rules around the security deposit I had given when I moved in. Does the owner have the right to deduct anything from that amount? If so, what are the reasons for which he can do so? 

Answer: In Dubai, a landlord may have to refund the security deposit collected from a tenant at the time of vacating a rented apartment under Article 20 of Law No. 26 of 2007 Regulating the Relationship Between Landlords and Tenants in the Emirate of Dubai, which states: “When entering into a rent contract, a landlord may collect from the tenant a security deposit for the purpose of maintenance of the real property upon the expiry of the rent contract. The landlord must refund this deposit or the balance thereof to the tenant upon expiry of the rent contract.”

It is an obligation of a tenant to hand over a rented property in good condition to a landlord at the time of vacating it except for reasonable wear and tear and for reasons beyond the control of a tenant.

This is in accordance with Article 21 of the Dubai Rent Law, which states: “Upon expiry of the term of the rent contract, the tenant must surrender possession of the real property to the landlord in the same condition in which the tenant received it at the time of entering into the rent contract, except for ordinary wear and tear or any damage sustained due to the reasons beyond the tenant’s control.”

However, if the tenant caused certain damage to the property beyond reasonable wear and tear, the landlord may retain the security deposit in part or in full to rectify such damage caused by the tenant.

If a tenant does not cause damage, a landlord should refund the security deposit in full in accordance with the provisions of the tenancy agreement between the tenant and the landlord.

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.

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