Security Deposit

A security deposit is the refundable sum a tenant pays the landlord at the start of a tenancy as protection against unpaid rent, damage beyond fair wear and tear, or unpaid bills. In Dubai market practice it is commonly around five per cent of annual rent for unfurnished homes and ten per cent for furnished ones, though the figure is contractual, not fixed by statute. The deposit must be returned at the end of the tenancy after the tenant hands the property back in the agreed condition, and disputes about deductions are among the most common cases at the Rental Disputes Centre. Tenants protect themselves by documenting the property's condition with dated photos at move-in and move-out, obtaining clearance of utility accounts, and getting deposit terms — amount, conditions for deduction, and refund timeline — written into the tenancy contract. Landlords should likewise document damage and keep repair invoices to justify any deduction.