Planning to rent a house in Dubai: Here’s all you need to know

This question would have come to your mind: how much of a security deposit is required if you’re planning to rent an apartment or villa in Dubai?

Real estate experts claim that while the Dubai Rental Law permits the landlord to demand a security deposit, it does not outline the amount or percentage of rent that may be charged in lieu of the security deposit.

“The industry standard is 5% of the annual rent for unfurnished units and 10% for furnished apartments, although this can change by mutual agreement between the landlord and tenant,” Rupert Simmonds, leasing director at Betterhomes, Gulf News reported.

“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.

According to Jake Walton, leasing director of Haus and Haus Real Estate, the security deposit amount may usually be negotiated, even though circumstances rarely deviate from that norm.

“If the landlord has made upgrades or has luxury interiors, they may ask for a bigger deposit. So, while the standard is 5% for unfurnished apartments, they may ask for 7.5% or 10%. 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, Gulf News reported.