Security Deposit Rules in Dubai and Abu Dhabi

Security deposits are a standard part of rental agreements in the UAE. Understanding the rules helps ensure smooth tenancies.

Dubai Security Deposit Rules

Standard Amounts

  • Unfurnished: 5% of annual rent
  • Furnished: Up to 10% of annual rent
  • Commercial: Negotiable, typically 5-10%

Legal Requirements

  • Must be clearly stated in contract
  • Cannot exceed regulated percentages
  • Must be returned within 30 days of lease end

Deduction Rules

Landlords can deduct for:

  • Unpaid rent or bills
  • Damage beyond normal wear
  • Cleaning if property left dirty
  • Missing items from inventory

Return Process

  1. Conduct move-out inspection
  2. Document any damage
  3. Calculate deductions
  4. Return balance with itemized statement

Abu Dhabi Security Deposit Rules

Amount Guidelines

  • Typically 5% of annual rent
  • Can be higher for furnished properties
  • Negotiable for commercial properties

Tawtheeq Requirements

Security deposit terms must be registered with Tawtheeq (Abu Dhabi's tenancy registration system).

Best Practices for Landlords

Documentation

  • Detailed move-in inspection
  • Photographs and videos
  • Signed inventory checklist
  • Condition report

Transparency

  • Provide itemized deductions
  • Show evidence of damage
  • Give receipts for repairs

Timely Return

  • Return deposit promptly
  • Communicate any delays
  • Provide full accounting

Avoiding Disputes

Clear documentation prevents most disputes:

  • Detailed pre-tenancy photos
  • Comprehensive move-in report
  • Regular inspection records
  • Clear contract terms

ProperLE helps you manage security deposits with move-in/out inspection tools and financial tracking.

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