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Move-Out & Deposits · Landlord and Tenant Duties

When Must a Dubai Landlord Refund the Security Deposit?

Most guides quote a refund deadline or a fixed percentage that the law itself never sets. Here is what Law No. 26 of 2007 actually requires — and the DLD-published case that shows how the Rental Disputes Center applies it.

PropertyPad Team·November 2026·7 min read

Search "when do I get my security deposit back in Dubai" and nearly every result quotes a number — a refund window of 14, 30 or 60 days; a deposit fixed at 5% of annual rent for an unfurnished unit, 10% for furnished. None of those figures come from the law. Law No. 26 of 2007 Regulating the Relationship Between Landlords and Tenants in the Emirate of Dubai sets neither a deposit amount nor a refund deadline. What it sets is narrower, and more useful once you know what it actually says.

For a portfolio manager holding dozens of deposits at once, that gap between what the internet quotes and what the statute says is not academic. It is the difference between a move-out dispute that resolves itself from a documented record and one that drifts, undocumented, into a Rental Disputes Center filing months later.

What does the law actually require?

Article 20 lets a landlord collect a security deposit "to ensure maintenance of the Real Property upon the expiry of the Lease Contract," on condition that the landlord "undertakes to refund such deposit or remainder thereof to the Tenant upon the expiry of the Lease Contract" (Dubai Legislation Portal, Law No. 26 of 2007, verified 30 October 2026). That is the entire statutory basis for the deposit: it exists for one purpose — securing the property's condition at handback — and it is owed back, in whole or in part, when the lease ends.

The law states no percentage of rent, no currency amount, and no number of days within which the refund must land. Every "5% / 10%" figure in circulation is market custom set by the landlord or the listing agent, not a legal minimum or maximum. A deposit agreed at any amount in the lease is enforceable as a contract term; it is the refund trigger — lease expiry, deposit back minus substantiated deductions — that the law fixes, not the figure itself.

What can actually be deducted from the deposit?

Three further articles define the boundary. Article 19 requires the tenant to maintain the property "in such a manner as an ordinary person would maintain his own property" and bars alterations without the landlord's permission. Article 21 requires the tenant to hand the property back "in the same condition in which the Tenant received it... except for ordinary wear and tear or for damage due to reasons beyond the Tenant's control." Article 17, on the landlord's side, already makes the landlord answer for "any defect, damage, deficiency, and wear and tear" that is not the tenant's fault.

Put together, the deposit can only fund repair of damage beyond ordinary wear and tear that is caused by the tenant — not the gradual fading of paint, carpet worn by normal foot traffic, or a fault that pre-dated move-in. The Rental Disputes Center has applied this plainly in a case Dubai Land Department itself published: a landlord who delayed refunding an AED 6,000 deposit after the lease ended was ordered to return it in full, with the RDC stating that an owner or their representative is "obliged to refund the full amount of security deposit in the absence of repairing works" (Dubai Land Department, case summary, verified 30 October 2026). No repair work, no deduction — the default is a full refund, and the burden sits with the landlord to show otherwise.

Security deposit lifecycle: collected at move-in, held during the lease, checked against the handback condition at move-out, then refunded in full or partly deducted, with the Rental Disputes Center available if disputed The deposit's lifecycle under Article 20 Move-in Deposit collected, condition noted → During lease Held by landlord, Art. 16/17 repairs separate → Lease expiry Art. 21 condition check vs. normal wear and tear → No repair works needed Full refund owed under Art. 20 (RDC: obliged to refund in full) Tenant-caused damage beyond normal wear Deduction, remainder refunded Disputed RDC monetary claim filed

What if the landlord refuses to refund it?

The law gives the tenant recourse but no shortcut. Article 21 routes a handback dispute to the Tribunal, which in current practice is the Rental Disputes Center. A withheld deposit is filed as a financial claim, costed at 3.5% of the claim value, with a minimum fee of AED 500 and a maximum of AED 15,000, plus the standard knowledge and innovation fees (Dubai Land Department, Filing a First-Instance Rental Lawsuit, re-confirmed 30 October 2026). Registration takes around 10 minutes online; the RDC then schedules a conciliation session through its tele-litigation system before any judgment is issued, and roughly 8 business days from filing to a result in the ordinary course.

There is no statutory countdown forcing the landlord to pay within a set number of days before a tenant can file — because, again, the law sets no deadline. In practice this means a tenant's leverage is persistence plus documentation: a written refund request citing Article 20, a record of the handback condition, and, if that goes nowhere, an RDC filing. The DLD case above shows the Center does not hesitate to order a full refund once it is established that no repair work occurred.

Don't confuse the Article 20 deposit with the DEWA deposit

Property managers juggling move-ins and move-outs often conflate two deposits that have nothing to do with each other. The Article 20 deposit is a private arrangement between landlord and tenant, set by the lease, with no fixed amount under the law. DEWA's security deposit is a separate, statutory utility deposit — AED 2,000 for a flat or AED 4,000 for a villa — collected at activation and, where the owner pays it rather than the tenant, refunded only on sale of the premises, not at tenant turnover (DEWA, Activation of Electricity/Water, verified 28 September 2026). Treating the two as one deposit, or assuming a tenant's Article 20 refund also closes out the DEWA account, is a reliable source of handover confusion at scale, and a frequent line item that goes missing from an owner statement if the two aren't tracked separately.

Common mistakes with Dubai security deposits

How PropertyPad handles deposits across a portfolio

PropertyPad logs each unit's security deposit against its lease, with a timestamped move-in condition record attached so a move-out assessment has something concrete to check against — not a memory. Deductions are tracked against documented, tenant-caused damage only, keeping the Article 17/19 line clear, and the DEWA deposit is held as a separate line item so the two never get merged on an owner statement. A refund that stalls past a reasonable window is flagged before it becomes an RDC filing.

See what PropertyPad does across leasing, maintenance and owner reporting. If a deposit dispute does reach the Tribunal, the filing and appeal process is set out in how the Rental Disputes Center works.


Sources

Dubai Legislation Portal — Law No. 26 of 2007 Regulating the Relationship Between Landlords and Tenants (Articles 17, 19, 20, 21 — the deposit and handback obligations)

Dubai Land Department — case summary: tenant refunded security deposit despite the landlord's procrastination

Dubai Land Department — Filing a First-Instance Rental Lawsuit (financial claim fees and timelines)

DEWA — Activation of Electricity/Water (Move-in) (DEWA security deposit, for contrast)

Fees and regulations change. The provisions on this page were verified against the Dubai Legislation Portal and Dubai Land Department on 30 October 2026. This article is general information, not legal advice — confirm current wording at dlp.dubai.gov.ae and dubailand.gov.ae before relying on it for a specific case.

A deposit record that survives the handover

Move-in condition, deductions and the refund itself — tracked per lease, per unit, before a dispute needs it.

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