Host
There’s just so much more to hear. Download our podcast at Dubai1038.com. And it is Drive Live, and we’re very pleased to be getting back into Drive Live Talks Legal this afternoon. We’re going to welcome a gentleman we haven’t seen in these parts for a while. It’s Ali Al-Assad from Yamalova & Plewka. How nice it is to see you.
Ali Al-Assad
Thank you for having me again.
Host
A very warm welcome back, Ali. Lots to talk about today. Some of this is quite involved, actually. I’ll be honest with you, I’ve just spent the last few minutes saying to myself, “How do I phrase this, and what does this mean?” So, we’ll be unpacking a number of fairly complex topics. However, if you have a topic that is not so complex and you want a legal perspective, the usual numbers are 4001 via the free app or 423 1010. That’s your opportunity to get in touch with a real, live legal expert, and he’s in the studio with us.
Ali, let’s start with this one topic that you wanted to bring up, and we’ll ease you into this relatively gently. Rent security deposit refunds were at the top of the list today. We haven’t talked about this for a while, but it’s often an area of disagreement for obvious reasons. You’ve lived in a place for a while and have maybe broken a few tiles. You have to pay for them when you leave, but where is reasonable and where is not reasonable?
Ali Al-Assad
So basically, the topic of security deposits involves two parts. First, what should and shouldn’t be covered by the deposit. Second, situations where there’s nothing to be covered, yet you still don’t get the refund, which is an unpleasant situation but happens from time to time.
The first point is that the purpose of the security deposit, generally speaking, is for the landlord to deduct costs for damages beyond normal wear and tear if the tenant doesn’t restore those damages. For instance, if you hand back the property with broken tiles or damaged furniture, the landlord has the right to deduct the necessary amount to restore the property to its previous condition.
The problem starts when you move into a flat. Let’s face it—not everyone moving into a flat is moving into a brand-new property. Most properties are five to seven years old, meaning it’s normal to see some defects. What we highly recommend is to take notes and document these defects. For example, if you notice broken tiles when you move in, and you don’t have proof, the landlord might claim you broke them. You would then have to fix them out of pocket or forfeit part of your deposit.
Host
That’s good advice. How many of us actually take pictures before moving in? It’s hard to know how arbitrary a landlord might be about returning the deposit. Your point is clear: document everything and get it signed off.
Ali Al-Assad
Exactly. Take pictures, write reports, and ensure all parties sign off on them. While documentation doesn’t guarantee a full refund, it gives you a strong defense if a dispute arises. This is especially important for furnished apartments since disputes over furniture or appliances are more common.
Host
What about repainting? Some landlords expect tenants to repaint the entire property before leaving. Is that standard?
Ali Al-Assad
Normal wear and tear should include paint. However, landlords often expect tenants to repaint the property. To avoid disputes, it’s best to include this as a clause in the contract. For instance, specify that the property was freshly painted with a certain type of paint and that the tenant must return it in the same condition.
Host
It sounds like tenancy contracts are key here. Many of us sign them without reading the fine print.
Ali Al-Assad
Absolutely. Luckily, Dubai now has a standard tenancy contract. However, there’s still space to add additional terms and conditions. Read these carefully and don’t hesitate to ask questions. It’s your right to understand what you’re signing, as it may have financial or time-related repercussions.
Host
We’ve got a question from Abishek, who texted in last week about how VAT is calculated on the sale of commercial properties. We didn’t have time to address it fully, but let’s cover it now.
Ali Al-Assad
Sure. VAT on commercial properties depends on whether the property is rented or not. If the property is rented, VAT applies only to the rental income. However, if the property is vacant, VAT applies to the entire sale price.
Host
That’s an important distinction. Thank you for clarifying.
Ali Al-Assad
You’re welcome.
Host
Ali, as always, your advice is practical and insightful.
Ali Al-Assad
Thank you for having me.
Host
And that’s all for Drive Live Talks Legal today. Don’t forget to download our podcast at Dubai1038.com for more discussions like this. Have a great day!