Can a Real Estate Company in Dubai Deduct Large Sums from a Tenant’s Security Deposits?

In developed cities such as Dubai, many people are attracted by the promise of excellent financial opportunities. However, are you familiar with rental policies regarding security deposits in highly populous cities? If the answer is no, don’t worry because we have a solution to your query. In Dubai, it is legal for real estate companies to cover maintenance or repair costs performed on the leased property by deducting large sums from the tenant’s security deposit.

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Under the provisions of Law No. 26, established in 2007, it is legal for the property owner to request a security deposit from the tenants at the start of the rental agreement. This deposit is primarily used for property maintenance after the rental term concludes. At the end of the lease, the landlord is obligated to return any unused portion of this deposit to the tenants.

Article 21 of the Dubai Tenancy Law states that when a lease ends, the tenant is required to return the leased property to the landlord in a similar condition to how they received it, excluding any normal wear and tear or situations beyond their control. In the case of conflict between the parties over this matter, this issue is referred to the committee thereon.

This term is for a judicial committee that can solve the conflict between the landlord and the tenant. Currently, the Dubai Land Department (RDC) has a committee to solve the conflict between the landlord and the tenant. If you can’t solve the dispute, you can contact RDC to solve the problem.

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The procedure for complaining is as follows:

• Register complaints on the RDC website and start the procedure
• When registered, you will receive additional information and guidelines for the following steps
• However, it’s recommended that you seek advice from a legal expert in Dubai who can offer you the necessary guidance and assistance related to your concern

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