In Dubai, a security deposit is an essential payment made by tenants to landlords when leasing a property. This deposit acts as financial protection for the landlord against any potential damages or breaches of the lease agreement by the tenant. Here's what you need to know:

What is a Security Deposit?

A security deposit is a sum of money paid by the tenant before moving into a rental property. It is held by the landlord throughout the tenancy and is typically refundable at the end of the lease, provided the property is returned in good condition and the tenant has fulfilled all their obligations.

How Much is the Security Deposit?

• Unfurnished Properties: The standard security deposit is usually 5% of the annual rent.
  
  

• Furnished Properties: For furnished properties, the deposit is typically higher, often around 10% of the annual rent.
  
  

What Does the Security Deposit Cover?

The security deposit primarily covers:

• Property Damage: Any damage to the property beyond normal wear and tear, such as broken fixtures, stained carpets, or holes in walls, can be deducted from the deposit.
  
  

• Unpaid Rent or Bills: If the tenant fails to pay rent or leaves any outstanding utility bills, the landlord can use the deposit to cover these costs.
  
  

• Cleaning Costs: If the property requires professional cleaning beyond what is considered normal, these costs can also be deducted from the deposit.
  
  

At the end of the tenancy, if the property is in good condition and all financial obligations have been met, the security deposit is usually refunded to the tenant. However, the exact terms regarding the refund of the security deposit should be clearly outlined in the tenancy agreement.

Ensuring you understand the conditions under which your security deposit may be withheld is crucial for both tenants and landlords to avoid disputes at the end of the lease term.