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Does the real estate company have the right to deduct money from the security deposit of a tenant?

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Home Guide Tenants' Guide

Does the real estate company have the right to deduct money from the security deposit of a tenant?

January 24, 2024
in Guide, Tenants' Guide
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Does the real estate company have the right to deduct money from the security deposit of a tenant?
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The case falls under the provisions of Law No. 26 of the year 2007, which regulates the relationship between lessors and lessees of property in the Emirate of Dubai.

It is important to note that in Dubai, landlords (or their authorized representatives) are legally allowed to collect security deposits from tenants at the beginning of the lease. These deposits are intended to cover any necessary maintenance expenses upon the termination of the lease period. However, it is the responsibility of the landlord (or their authorized representative) to refund the security deposit, or any remaining portion thereof, to the tenant upon the termination of the lease. This requirement is outlined in Article 20 of the Dubai Tenancy Law, which states the following:

“The lessor may, upon concluding the lease, receive from the lessee a security to ensure the maintenance of the property upon termination of the lease period, provided the lessor shall refund such security or remaining part thereof to the lessee upon termination of lease.”

Therefore, the real estate management company involved may consider deducting costs for any necessary maintenance on the leased property after the lease has ended.

To further understand this matter, refer to Article (21) of the Dubai Tenancy Law. According to this article, when a lease is terminated, it becomes the tenant’s responsibility to return the property to the landlord in the same condition it was received, except for normal wear and tear or damage caused by factors beyond the tenant’s control. In case of any disagreement regarding this issue, the Rental Disputes Centre in Dubai can be consulted. The exact wording of Article (21) is as follows:

“Lessee shall, upon termination of the lease, hand over the property to the lessor in the condition in which he received it at the time of leasing except for normal tear and wear or whatever was out of his control. In case of conflict between the parties in this regard, the issue shall be referred to the committee to decide thereon.”

The term “committee” is defined in the Dubai Tenancy Law as the judicial committee responsible for resolving disputes between landlords and tenants. Currently, the RDC is the authorized judicial committee for settling disputes between lessors and lessees.

Additionally, you can review the terms and conditions outlined in the tenancy/lease agreement regarding the maintenance of the leased property.

After carefully reviewing the provisions of the Dubai Tenancy Law and your tenancy/lease agreement, if you believe that the deductions made are unjustified, there are steps you can take to address the issue professionally and amicably.

Firstly, it is recommended that you engage in discussions with the apartment’s owner to try and resolve the matter. By approaching them respectfully and openly, you may be able to reach a mutually agreeable solution.

However, if you are unable to settle with the owner, you have the option to refer the matter to the RDC (Rental Disputes Center) for further resolution. You can register your complaint on the RDC’s website to initiate this process. Once registered, you will receive additional information and instructions on the subsequent steps to be taken.

While proceeding with the complaint, it is advisable to seek guidance from a legal practitioner in Dubai. They can provide you with the necessary advice and assistance specific to your situation, ensuring that you are well informed and properly represented throughout the process.

Also Read: No more rental cheques? Dubai tenants now have the option of paying rent via direct debit – here’s how

Tags: DubaiDubai LandlordDubai TenantsDubai Tenants' RightsGuideReal EstateReal Estate CompanyTenantUAE

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