How do rental contracts and deposits work in Dubai in 2026?

A refundable security deposit is standard. Market practice reinforced by long-standing RERA guidance commonly lands near 5% of annual rent for unfurnished homes and nearer 10% for furnished units. The landlord should return the balance after move-out, minus proven damage beyond ordinary wear. Photograph the flat on day one and again when you leave; deposit fights without dated evidence are messy.

Agency commission is separate from the deposit. When a RERA-registered broker closes a residential lease, tenants often pay around 5% of annual rent as market practice unless the parties agree otherwise. Confirm the percentage and VAT treatment in writing. Do not confuse commission with the security deposit or with Ejari fees.

Get a written contract naming landlord and tenant, property details, annual rent in AED, payment schedule, deposit amount, start and end dates, and who pays service charges or chiller (district cooling). One-year terms that renew by agreement remain the default pattern for ordinary flats and villas.

Register the lease on Ejari after signing. Without Ejari, DEWA (Dubai Electricity and Water Authority) connection and many formal rental dispute routes become difficult. Keep your own copy of the Ejari certificate with the signed contract. In Abu Dhabi the parallel step is Tawtheeq (Abu Dhabi's tenancy registration system linked to utility setup); an Ejari certificate does not cover an Abu Dhabi flat.

Rent payment culture still leans on post-dated bank cheques for one, two, three or four instalments of the annual rent. Monthly or quarterly bank transfers are more common than they were, but bounced cheque risk remains serious under UAE law. Open a UAE account early if your landlord insists on local cheques.

At renewal, landlords sometimes claim a large jump. Do not accept a percentage from a WhatsApp message as law. Use the current RERA rental index / calculator on DLD channels to see what increase framework applies to your building and rent level, then negotiate from that durable check rather than from fear. Exact caps and brackets change with the index, so treat the official tool as the source of truth for each renewal year.

Read notice and early-termination clauses before you sign. Some contracts allow exit only with a replacement tenant, a fixed penalty, or months of notice. Verbal promises about "easy exit" mean little once Ejari is filed. Freehold versus leasehold ownership of the tower matters mainly for the landlord's title path; as a tenant your practical protections still run through the registered Ejari contract and RERA dispute routes.