Demystifying Security Deposit Deductions

Demystifying Security Deposit Deductions

As the real estate market in Dubai continues to thrive, tenants often find themselves grappling with questions about their rights, especially when it comes to the security deposit. In this blog post, we delve into a commonly asked question by KT readers: Can real estate companies deduct money from the tenant’s security deposit, specifically for repainting the flat?

To address this concern, we turn to Law No (26) of the year 2007, which governs the relationship between lessors and lessees of property in Dubai. According to Article (20) of the Dubai Tenancy Law, landlords are legally entitled to obtain security deposits from tenants for property maintenance at the lease’s commencement. Importantly, the law mandates the refund of the security deposit or its remaining part to the tenant upon lease termination.

Maintenance Deductions:

Real estate companies can indeed make deductions for maintenance works on the leased property after the lease period concludes. Article (21) of the Dubai Tenancy Law outlines the tenant’s responsibility to return the property in the condition it was received, barring normal wear and tear or damage beyond the tenant’s control. Any disputes in this regard can be referred to the Rental Disputes Centre (RDC) in Dubai, acting as the judicial committee competent to settle such matters.

Navigating Disputes:

If you find yourself at odds with deductions proposed by the real estate management company, consider taking the following steps:

  • Review Your Lease Agreement: Examine the terms and conditions for property maintenance outlined in your tenancy agreement.
  • Amicable Discussions: Initiate discussions with the apartment owner to resolve the matter mutually.
  • RDC Resolution: If a settlement isn’t reached, proceed to register a complaint at the RDC’s website. This will kickstart the necessary proceedings, and you will receive guidance on the subsequent steps.
  • Legal Consultation: For added support, consult with a legal practitioner in Dubai who can provide tailored advice and assistance based on the specifics of your case.

Conclusion:

Navigating security deposit deductions in Dubai’s real estate market requires a clear understanding of the legal framework. By familiarizing yourself with the provisions of the Dubai Tenancy Law and your lease agreement, you can confidently address any disputes that may arise. Remember, open communication and adherence to legal procedures are key to a satisfactory resolution for both tenants and real estate companies.

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