The Real Estate Regulatory Agency (RERA) has devised an initiative called Ejari to regulate rental contracts and tenant-landlord agreements. The agreement includes terms regarding the security deposit as well. When the tenants leave their rental home, they are entitled to receive a deposit return from their landlords as per the regulations. Since the security deposit refund depends on the property’s condition after tenants vacate the rental house, landlords can deduct a certain amount from the deposit. However, in case of conflicts, there are ways tenants can legally get security deposit refund in Dubai.
SECURITY DEPOSIT REFUND IN DUBAI
Article 20 of the Dubai Rental Law makes the security deposit refund mandatory:
“When entering into a Lease Contract, the Landlord may obtain from the Tenant a security deposit to ensure maintenance of the Real 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.”
If the landlord is not returning the security deposit in Dubai, tenants should refer to the above-stated law that provides consideration for why the landlord must receive the security deposit in the first place. While the law explains the relationship between the landlord and tenants, it has not specified the parametres that will result in a deduction from security deposit refund.
Tenants must follow the guidelines and take good care of the property to get a full security deposit refund in Dubai at the end of the lease term.
TIPS TO RECEIVE A SECURITY DEPOSIT REFUND
Detailed below are some tips to ensure a seamless process of refund of security deposit in Dubai.
UNDERSTAND THE TERMS BEFORE SIGNING
Before signing the contract, carefully read all the terms and conditions. Moreover, highlight essential points regarding the rights to security deposit claims. Rental contracts direct the tenants to vacate the property in the condition it was handed over at the time of signing the contract. However, if any damage has occurred, the tenants should get it repaired to abide by the guidelines.
Tenants can secure their security deposit by ensuring the following things in their contract:
- Read the contract carefully before signing.
- Follow the tenancy contract checklist to get clarity about the rights and responsibilities.
- Get the wear and tear things classified by the landlord.
- Don’t make changes to the property without approval from the landlord.
- Repair anything that may have been damaged during the stay.
TAKE NOTES OF THE PROPERTY CONDITIONS WHEN MOVING IN
Since the Dubai rental deposit refund depends on the property condition, tenants must take a good walk-through when renting a home. Make notes and include photographic evidence of the rental house before signing the rental agreement.
ATTEND THE MOVE-OUT INSPECTION
The landlord conducts move-out reports in the tenant’s presence. Have the report file of the notes taken at the start. Tenants will be able to take a better stance in resolving the rental deposit disputes like if the landlord refuses to return the security deposit in Dubai.
REPAIR AND REPAINT THE WALL
Generally, landlords shouldn’t deduct any amount from the security deposit for minor wear and tear to the walls, but it’s better not to leave an excuse. Tenants must leave the unit in good condition when they vacate the property. Rental house occupants must repair any holes, stains or damage and repaint the walls to receive the rental deposit return in Dubai.
RECORD EXPENSES
When moving into a rental home, record all expenses made in property repair. For instance, the incurred cost for any repairs made. Recording expenses on maintenance helps advocate for the request for the security deposit refund in Dubai.
CLEAR THE BILLS
Any unclear dues, such as utility bills, may result in deductions from the tenant’s security deposit. Tenants must clear all their dues, like DEWA bills and other charges, right before leaving the property at the end of the lease contract. This increases the chances of receiving a complete security deposit refund in Dubai.
MOVE THE FURNITURE OUT
If renting an unfurnished home, tenants must move the furniture out at the end of the lease term. Any removal costs incurred by the landlord will end up in a deduction from the security deposit. Tenants can reduce this hustle by contacting any mover or packer in the UAE.
WHAT IF THE LANDLORD REFUSES TO RETURN THE SECURITY DEPOSIT IN DUBAI?
If the landlord is not returning the security deposit in Dubai even after good maintenance and certain follow-ups, tenants can file a complaint to RERA. The real estate regulating body ensures both parties fulfil their duties as per the contract. Tenants can hand over the house keys to RERA in case the landlord doesn’t fulfil their end of the commitment. RERA will hold the keys until the security deposit is refunded.
FAQs
What is a security deposit in Dubai rental agreements?
A security deposit in Dubai rental agreements is a refundable amount paid by the tenant to cover potential damages or unpaid dues.
Is the security deposit in Dubai refundable?
Yes, the security deposit in Dubai is refundable at the end of the tenancy, subject to the property condition and any outstanding payments.
How much is typically charged as a security deposit in Dubai?
Typically, tenants in Dubai pay a security deposit of 5% of the annual rent for unfurnished properties and 10% for furnished ones.
This is all about how to get security deposit back in Dubai. The Dubai tenancy deposit refund process and laws in place protect the rights of all parties involved. Tenants can follow the aforementioned tips to claim security deposit after the tenancy contract expires.
DEWA, Dubai Municipality and other authorities also keep a security desposit at the time of registration. Involved parties can get refund in Dubai by following the process.
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