How to receive the full security deposit back from your landlord
Dubai has a thriving real estate market where tenants can look around for better offers when their contracts are up for renewal. While Ejari contracts have made lives easier for landlords and tenants, getting a full security deposit refund in Dubai can sometimes be tricky. When tenants switch homes, they are entitled to receive the security deposit back from the landlord. In most cases, this happens without issue. However, there can be deductions that the tenant is unprepared for at times. Let’s delve a little deeper and see what renters can do to avoid nasty surprises.
THE DUBAI RENTAL LAW
Let’s look at the issue in light of the legal framework. The Dubai Rental Law clearly states that:
“When entering into a lease contract, the landlord may obtain from the tenant a security deposit to ensure the maintenance of the property upon the expiry of the lease contract, provided that the landlord undertakes to refund such deposit or remainder thereof to the tenant upon the expiry of the lease contract.”
There are three essential elements to this particular stipulation:
- If they want (which is usually the case), the landlord may get a security deposit from the tenant at the start of the rental lease.
- The security rent deposit is for ‘end-of-lease maintenance’ resulting from the wear and tear caused to the property while the tenant inhabited it.
- The landlord MUST refund the security deposit in full or what’s left after deductions to their tenant when the latter vacates the property.
As per practice, the landlord gets a security deposit cheque from the tenant to pay for any property damages. And the cost of wear and tear is deducted from the security deposit when the tenant vacates the rental property.
While the law explains the purpose and treatment of security deposits in Dubai, it does not specify:
- Allowable deduction by the landlord.
- What generally classifies as damage or wear and tear of the property
- What amount should be deducted for a certain level of wear and tear or property damage
Since the law does not set any parameters to determine the total cost of damage or wear and tear, the amount deducted is entirely at the landlord’s discretion. And sometimes, these deductions are exorbitant against the security deposit refund a tenant gets in Dubai.
Having said that, getting a complete security deposit refund in Dubai is still quite possible as long as the tenant performs due diligence and protects themselves by following some simple guidelines.
RECEIVING THE SECURITY DEPOSIT BACK FROM THE LANDLORD
Whether renting long-term or short-term in Dubai, follow these simple tips to get your full security deposit (or at least most of it) back from the landlord in Dubai.
READ YOUR TENANCY CONTRACT CAREFULLY
As per the rule of thumb, the landlord must return the full security deposit as long as tenants vacate the premises in a satisfactory condition as per the contract. It is, therefore, important to thoroughly read the tenancy contract in Dubai. In addition to outlining the rights and liabilities of each party, the agreement includes specific details (if not all) related to rental security deposit claims.
Anyone who has entered into a tenancy contract in Dubai knows that the tenant must leave the property in the “same condition” they got it in or repair any damage to the property beyond normal wear and tear and so on. As long as the tenant abides by these terms, they can receive a full refund of the security rent deposit in Dubai.
To sum up, your biggest guarantee of not losing your security deposit amount is to:
- Carefully read the rental contract before signing it.
- Obtain clarification, if required, on any security deposit terms and clauses that are unclear.
- Request the landlord to state what is classified as “wear and tear”.
- Before moving in, check the property’s condition and inform the landlord of anything that is damaged or broken.
- Ensure the clauses are unchanged every time you renew your tenancy contract in Dubai.
- Seek permissions before making any change to the property.
- Before moving out, try to fix any of the damages that may have occurred during your tenancy.
ALWAYS GET A “CHECK-IN” AND “CHECK-OUT” REPORT
Another key step that even the most prominent real estate agents in Dubai swear by is check-in and check-out reports. These reports include photographic evidence of the property’s condition before the tenant moves in and after moving out.
These reports are ideally conducted by the landlord in the tenant’s presence, with the evidence in place. It is much easier to determine any discrepancies in the condition of the property and the extent of damage and wear and tear. If the wear and tear is minor, the tenant gets a full security deposit refund in Dubai.
If, however, disputes still arise over the request for refund of security deposit cheque, the tenant should formally lodge or register a case with the Dubai Rental Dispute Centre at the Real Estate Regulatory Agency (RERA). RDC is a Dubai Land Department’s judicial arm that uses flexible mechanisms to settle rental disputes in the emirate and other issues related to Dubai real estate.
Tenants can register the case with a fee of 3.5% of the annual rent (minimum AED 500 and maximum AED 20k). Plus, there is an administrative cost of AED 320. The Arbitration Department will try to reach a decision within 15 days. If that is not possible, a lawsuit is to be filed. The timeline for a ruling is a maximum of 30 days.
However, if you want to receive the security deposit back from the landlord quickly, this might not be the best idea. If a solution can be found with talks, it will save time and visits to the courts.
HELPFUL TIPS TO RECEIVE THE SECURITY DEPOSIT BACK FROM THE LANDLORD
While due diligence always comes in handy, these tips can further cement your standing when requesting a full security deposit return in Dubai.
REPAIR & REPAINT THE WALLS
While reasonable wear and tear are permissible, why give the landlord a chance to deduct money from your security deposit cheque? Make it a habit to restore the walls to a good condition when you vacate the property. Always repaint them and repair any damage – drill holes, scuff marks and more before you hand the keys back to the landlord. This applies to both tenants living in apartments for rent in Dubai and those renting villas in Dubai.
RECORD ALL YOUR PROPERTY-RELATED EXPENSES
From the day you move into your rental home in Dubai, keep a record of :
- Property repairs you pay for.
- Personal costs you incur for the property.
- All you do to restore the property to a good condition before moving out.
Doing so will help you advocate your case better when you request a security deposit refund from your landlord in Dubai.
CLEAR YOUR BILLS
Please don’t leave your due bills for the landlord, because it might end up costing you extra. Make sure you pay off all your dues (telephone, electricity, etc.) before vacating the property to increase your chances of receiving a full security deposit refund cheque from the landlord.
TAKE THE FURNITURE OUT
If you rented an unfurnished property, don’t leave any furniture behind when you switch homes. Any removal costs incurred to remove the furniture will be deducted from your security deposit, and you don’t want that!
HANDOVER KEYS TO RERA
If you suspect that your landlord will not return your security deposit, you can also hand over the keys to RERA on the moving out date. The organisation can hold them for you until the payment is made.
THE LANDLORD’S RESPONSIBILITIES ARE THE RENTER’S RIGHTS
When you’re renting a home, you need to know the tenants’ rights in Dubai. Part of those rights is the landlord’s responsibility. When it comes to the property, the landlord must ensure that the tenant checks the property and tenancy contract for the following concerns.
THE PROPERTY MUST BE CLEAN
The property must be clean and ready to move in for the new tenant. The landlord is responsible for ensuring the house is in good condition and livable before they hand it over to the tenant.
A SAFE-LIVING ENVIRONMENT
The landlord needs to ensure that the property they hand over is safe. This includes windows and doors that tenants can securely lock and any fire or other alarms necessary for safe living. Also, the home should be equipped with essentials (functional bathrooms, appropriate kitchen).
MAINTENANCE
One of the most important things to consider when renting a property in Dubai is maintenance and who’s responsible for it. Ideally, the landlord has to pay for all maintenance costs exceeding AED 500. Additionally, all major maintenance costs of plumbing, electrical, and air-conditioning should be borne by the landlord and none of these should be deducted from your security deposit cheque. However, the tenant must pay for fixing smaller wear and tear.
Be mindful of these tips and guidelines on receiving the rental security deposit back from the landlord in Dubai. As long as you play it smart, you won’t end up losing your security deposit refund in Dubai.
FREQUENTLY ASKED QUESTIONS
HOW TO PROCEED IF THE LANDLORD IS NOT RETURNING THE DEPOSIT IN DUBAI?
As discussed earlier, Tenants can file a RERA complaint against the landlord to deal with different rental issues, including security deposit in Dubai refunds.
For any queries related to security deposit refunds, call 800-4488.
WHAT CAN THE LANDLORD USE THE SECURITY DEPOSIT FOR?
Security deposit is reserved for property maintenance after the termination of the tenancy agreement.
CAN THE LANDLORD KEEP THE SECURITY DEPOSIT IF THE TENANT IS EVICTED?
No, the landlord is not supposed to keep the security deposit. Security deposit in Dubai has to be returned to the tenant after the expiry of the tenancy contract, either in full or whatever of it is left after maintenance.
I AM RENTING IN DUBAI FOR THE FIRST TIME. WHAT ARE SOME THINGS THAT I SHOULD CONSIDER?
You need to consider many things while renting a home. Start from getting an estimated increase in annual rent using the RERA index calculator. Here is a comprehensive step-by-step guide on how you should go about renting a home in Dubai.
ARE THERE ANY HIDDEN COSTS OF RENTING A HOME IN DUBAI?
There may be some additional charges for renewing a rental contract in Dubai. Here’s a handy guide to the hidden rental costs of renting in Dubai.
To wrap up, it always helps to build a healthy landlord-tenant relationship. Try to maintain amicable, honest and professional terms. Also, ensure effective communication and stay up-to-date with your payment schedules. This will go a long way in ensuring you receive the security deposit back from the landlord.
In case you are leaving your property to return to your home country, this leaving Dubai checklist will come in handy. You must also cancel all accounts before leaving the UAE to avoid any inconveniences.
For more helpful information on the property market and lifestyle in the UAE, stay tuned to MyBayut.
