Tenant deposit

Dubai's tenancy law allows a landlord to take a security deposit from the tenant and requires it to be refunded, in whole or in part, when the tenancy ends. The amount is not fixed by law. Market custom is 5% of the annual rent for an unfurnished home and 10% for a furnished one, and the figure is written into the tenancy contract registered in Ejari.

The deposit is held by the landlord, or by the managing agent on the landlord's behalf. There is no government deposit protection scheme of the kind UK landlords are used to, and no requirement to keep the money in a separate account or pay interest on it.

At the end of the lease the landlord may deduct the cost of damage beyond fair wear and tear, cleaning or repainting if the contract provides for it, and unpaid utility or cooling bills. The balance should be returned promptly once the keys are handed back and the tenant shows final bill clearances. Disagreements are decided by the Rental Disputes Centre.

Advice for overseas landlords:

• Have a dated, photographed inventory and condition report signed at move-in. Without one, deductions are hard to justify.
• Keep the deposit available. It is the tenant's money, and it has to be repaid when they leave, often at short notice.
• State in the contract what the tenant must do on departure, such as repainting and proof of final DEWA and chiller settlement.