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Dubai, UAE

Under what conditions can a landlord withhold the security deposit at the end of a lease?

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Under what conditions can a landlord withhold the security deposit at the end of a lease?

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KHE Legal Consultancy
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16 Jan 2025, 04:44

Hello,

If the tenant causes damage to the property beyond normal wear and tear (e.g., broken fixtures, damaged walls, or destroyed appliances), the landlord may withhold part or all of the security deposit to cover the cost of repairs.

Normal wear and tear (e.g., faded paint, worn carpets) cannot be deducted from the security deposit, as this is expected over time.

The landlord can deduct any unpaid rent or utility bills (such as water, electricity, and other services) from the security deposit.

If the tenant owes money at the time of vacating the property, the landlord is entitled to use the deposit to cover these outstanding amounts.

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Dar Al Haqooq Legal Consultancy
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16 Jan 2025, 04:55

Dear Client,

Thanks for your question! I hope you are doing well. I will assist you in this matter.

In the UAE, landlords can withhold security deposits under specific conditions. These include unpaid rent or utility bills, property damage beyond normal wear and tear, breach of lease terms, early termination without proper notice, and cleaning costs if the property is left in poor condition.

Landlords may also deduct expenses for replacing missing or damaged items provided with the property. However, landlords must provide a detailed breakdown of any deductions made.

If there are no issues, the full deposit should be returned within a reasonable timeframe, typically 14 days after the tenant moves out. Tenants should ensure they fulfill all lease obligations to avoid deposit deductions.

Thanks & Regards,

ABDUL WAHIED

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London Center for Legal Consultancy Office
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16 Jan 2025, 07:01

A landlord can withhold the security deposit at the end of the lease under the following conditions:

1. Unpaid Rent: If there are any outstanding rent payments.

2. Property Damage: If the tenant caused damage to the property beyond normal wear and tear.

3. Unpaid Utility Bills: If the tenant has not paid the utility bills, which the landlord had to cover.

4. Cleaning Costs: If the property is not left in a clean and rentable condition.

5. Breach of Lease Agreement: If the tenant violated the terms of the lease agreement.

The landlord must provide evidence for any deductions made from the security deposit.

You can contact us via WhatsApp for more details, as we specialize in these cases and provide comprehensive answers to any questions you may have.

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Al Hajeya Alnoobi Advocates and Legal Consultants
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16 Jan 2025, 07:58

Hello,

A landlord in the UAE can withhold a tenant’s security deposit at the end of the lease only under certain conditions outlined in Dubai Law No. (26) of 2007, as amended by Law No. (33) of 2008, and the terms of the tenancy agreement.

The landlord is entitled to withhold or deduct from the deposit if there are outstanding payments such as unpaid rent or utility bills.

Additionally, if the tenant has caused damage to the property beyond normal wear and tear, the landlord can use the deposit to cover the cost of repairs.

Furthermore, if the tenancy agreement requires the tenant to return the property in the same condition it was received (excluding normal wear and tear) and the property has not been adequately cleaned or restored, the landlord may deduct reasonable expenses for cleaning or restoration.

If the landlord withholds the deposit without valid justification or deducts an amount that exceeds the legitimate expenses, you have the right to file a complaint with the Rental Dispute Settlement Centre (RDC) to recover your deposit.

Should you need assistance in resolving such a dispute or protecting your rights as a tenant, I am available to help.

Please feel free to contact me via phone or email.

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Mohamed Bakheet Advocates & Legal Consultants
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16 Jan 2025, 08:49

The landlord can withhold the security deposit at the end of the tenancy in specific cases under the laws and customs in force in the UAE.

This is done to compensate for any damages or unpaid dues incurred by the tenant during the tenancy period. The following are common situations that can lead to the security deposit being withheld:

1. Damage to the property:

a. Actual damage: If the property has been damaged beyond “normal wear and tear”, such as:

- Damage to walls or floors.

- Damage to appliances attached to the property.

- Damage to furniture in furnished properties.

b. Normal wear and tear: The landlord is not entitled to withhold the security deposit to cover damages resulting from normal wear and tear such as:

- Erosion of paint.

- Minor repairs due to daily use.

2. Unpaid rent or outstanding bills:

If the tenant has not paid the rent or has left unpaid bills (such as electricity, water, or cooling), the landlord can withhold a portion of the security deposit to cover these dues.

3. Breach of contract terms:

If the tenant has breached one of the terms of the contract, such as making unauthorized alterations to the property without the landlord’s permission, the landlord can use the insurance to restore the property to its original condition.

4. Cleaning or restoration:

If the tenant leaves the property in an unclean condition or in need of restoration (beyond normal wear and tear), the landlord can deduct the cleaning or restoration costs from the insurance.

5. Premature termination:

If the tenant terminates the lease before its expiration without adhering to the agreed terms (such as paying the early termination penalty), the landlord can withhold the security deposit to cover the penalty.

6. Failure to hand over the property on time:

If the tenant is late in handing over the property after the end of the contract, the landlord can deduct a portion of the insurance to cover the rent for the period of delay.

7. Loss of keys or cards:

If the tenant does not hand over the keys or access cards to the property, the landlord can deduct the cost of replacing them.

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