How is the booking fees different from the security deposit?


When renting a villa, there is something called booking fees in the beginning to secure the property.  Also they require a security deposit/cheque later.

How is the booking fees different from the security deposit? Are any of these fees refundable?  From what i understand booking fees should be deducted from the total rental value agreed on.  Can you please clarify this for me?


Thank you for your email.

A booking fee is a payment that secures a property for you and guarantees that the property is taken off the market, this fee is usually refundable.

A security deposit is the payment made (usually 5% of the rental value) that covers any expenditure needed after the tenant vacates. It is also used in case of damage or any repair required.

I hope this has helped.

The above answer has been brought to you by Mario Volpi who is the Managing Director of Ocean View Real Estate in Dubai. Mario has 30 years of property industry experience in Dubai and London.

The advice provided in our columns does not constitute legal advice and is provided for information only. Readers are encouraged to seek appropriate independent legal advice.

Click to know more about transaction fees and charges in Dubai.


One thought on “How is the booking fees different from the security deposit?

  1. Dear Rent expert,
    We need advice please. We are still waiting on our rent deposit refund (14000AED). We have been asked to provide a NOC and a POA in order for the check to be issued directly to us and not the initial company that set it up 5 years ago. (They have gone out of business). We have provided the NOC and POA but have still not received payment. Please advice us what our rights are and how best to proceed?
    We gave 3 months notice (2 months were requested) before the end of our contract. We also vacated the property 2 months before the end of the contract.
    Thank you for your advice and guidance.

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