Renting a home in Dubai: How much is the security deposit?
Can you negotiate on the amount if the deposit is too high? Experts clarify
Dubai: If you are about to rent an apartment or villa in Dubai, how much of a security deposit will you be required to pay?
According to real estate experts who spoke to Gulf News, while the Dubai Rental Law states that the landlord is entitled to charge a security deposit, it does not specify the amount or percentage of the rent that can be charged as a security deposit.
How much should the security deposit be?
“The industry standard is five per cent of the annual rent for unfurnished units and 10 per cent for furnished apartments, although this can change by mutual agreement between the landlord and tenant,” Rupert Simmonds, leasing director at Betterhomes, told Gulf News.
“This, however, is a base guideline to help landlords and tenants meet in the middle and secure both parties fair and square. The deposits can be changed depending on the furniture, if it is luxury then the deposits will be higher,” he added.
Furnished apartments: Typically around 10 per cent of the annual rent.
The industry standard is five per cent of the annual rent for unfurnished units and 10 per cent for furnished apartments, although this can change by mutual agreement between the landlord and tenant.
Can I negotiate the amount of security deposit I need to pay?
Jake Walton, leasing director at Haus and Haus Real Estate, said that while situations rarely change from that norm, on occasion, the security deposit amount may be negotiated.
“If the landlord has made ugprades or has luxury interiors, they may ask for a bigger deposit. So, while the standard is five per cent for unfurnished apartments, they may ask for 7.5 per cent or 10 per cent. It is part of the negotiations and a tenant will have to speak with their broker on what they can negotiate. You would anyways get this security deposit back when you hand the property back to the landlord. The deposit just covers the landlord in the event that there are damages,” Walton said.
You would anyways get this security deposit back when you hand the property back to the landlord. The deposit just covers the landlord in the event that there are damages.
Should the security deposit amount be mentioned in my rental contract?
Walton confirmed that the security deposit is clearly mentioned on the Ejari, which is the tenancy contract that is registered with the Dubai Land Deparment (DLD).
“The addendum to the contract would have that in most cases as well. It will mention the conditions for the handing over of the unit and will usually state that the deposit will be returned once the conditions are met,” Walton added.
How can I get my rent deposit back after I move out?
When you do cancel the contract, you will need to make sure that you settle all your final bills, whether it has to do with water and electricity, gas or the district cooling service. You would need to provide the final settlement bills along with any access cards and keys that you have in your possession. Once the handover is completed, and the landlord has checked the unit, the security deposit will be refunded. The refund may be given as a cheque, or in some cases in cash or through a bank deposit as well, according to Walton.