Security deposits in Dubai: what landlords can and can’t deduct
The deposit is the tenant’s money that you hold. Returning it correctly — and documenting any deductions — is what keeps you out of a dispute.
How much, and who holds it
In Dubai it is common market practice to take a security deposit of around 5% of the annual rent for an unfurnished unit, and often more (commonly 10%) for a furnished one. This is convention rather than a fixed statutory rate. The landlord holds the deposit for the duration of the tenancy.
What you can deduct
At the end of the tenancy you may deduct from the deposit for genuine tenant-caused issues, typically:
- Damage beyond fair wear and tear caused by the tenant
- Unpaid rent or unpaid utility bills (e.g. DEWA) attributable to the tenant
- Agreed costs the tenant was responsible for and did not settle
Avoiding a dispute
Document the unit’s condition at move-in and move-out with dated photos, give the tenant an itemised settlement showing each deduction, and return the balance promptly. If it still goes wrong, the Rental Disputes Centre (RDC) is the venue.
Pillar OS produces an itemised deposit settlement statement with a live running refund total, so the tenant sees exactly how the figure was reached.