Security Deposit Deduction in Furnished Apartments 2026: Difference Between Normal Wear and Damage and Your Legal Rights

Introduction: What is a Rental Security Deposit?

A security deposit, also known as rental insurance, is a sum of money paid by the tenant to the landlord as a trust when signing the rental contract. Its purpose is to compensate the property owner for any damage to the rental unit during the tenancy period caused by misuse or negligence by the tenant. Security deposits typically range from one to three months' rent depending on the agreement between the parties and the type of property.

The Saudi Real Estate Brokerage System defines the guarantee as an amount paid by the tenant as a trust to compensate the property owner or benefit holder for any damage within the tenant's responsibility and caused by them. This definition clarifies that the deposit is not the landlord's property but rather a trust that must be returned to the tenant at the end of the contract if the unit is delivered in its original condition considering normal wear and tear.

The Final Financial Conflict: The Moment of Maximum Tension

The moment of the tenant's departure from the rental unit is the moment of maximum tension in the rental relationship. Many landlords tend to deduct the entire deposit amount under the pretext of maintenance and repairs while the tenant believes they delivered the apartment as they received it or in acceptable condition. This conflict occurs daily in the Saudi real estate market and causes disputes that may reach the courts.

The main problem lies in the lack of proper documentation of the unit's condition at handover and delivery. Many old contracts did not include a detailed handover report with photos making it difficult for both parties to prove the original condition. However with recent developments in the Ejar platform and the electronic handover service solving this problem has become possible.

The Legal Standard: Fair Wear and Tear vs. Damage

The Saudi system through judicial principles and standardized rental contracts distinguishes between two different types of changes that occur to the property during the rental period. Understanding this difference is essential to protect the rights of both parties.

Fair Wear and Tear

Fair wear and tear is the inevitable change that occurs to the property and its contents as a result of time passage and normal daily use. This type of change is expected and is not considered the tenant's fault and the landlord has no right to deduct any amount from the deposit for it because it is part of the rental cost that the tenant has already paid.

Examples of fair wear and tear include paint fading due to sunlight or time passage natural carpet soiling in corridors and high-use areas slight loosening of door and cabinet handles expiration of light bulbs' lifespan curtain color change due to sun and dust minor surface scratches on floors from daily use slight yellowing in ceramics and bathrooms and natural leather sofa wear from repeated sitting.

Damage

Damage is harm resulting from misuse negligence or avoidable accidents. The tenant is responsible for this type of damage and the landlord has the right to deduct the actual repair cost from the deposit. However it must be emphasized that the deduction is only for repair costs and not complete renovation.

Examples of damage include broken window or door glass cigarette burns on sofas or carpets large holes in walls from hanging many or heavy pictures broken floor or wall tiles appliance damage due to misuse permanent stains on carpets or walls broken cabinet or kitchen doors water leaks resulting from maintenance negligence and plumbing damage from disposing of inappropriate materials.

Comparison Table: Fair Wear and Tear vs. Damage

To clarify the difference practically we review specific examples for each element in the furnished apartment.

Walls and Paint

Fair wear and tear includes gradual color fading small holes from hanging light picture nails and slight soiling around light switches. Damage includes large holes needing filling and repair drawings or writings on walls permanent oil or paint stains and cracks resulting from improper installation.

Floors

Fair wear and tear includes surface scratches from daily walking slight parquet color fading and natural dust accumulation in joints. Damage includes broken tiles or marble cigarette or iron burns permanent stains from chemicals and deep scratches from dragging heavy furniture.

Furniture and Furnishings

Fair wear and tear includes sofa relaxation from repeated sitting slight fabric color change and minor bed creaking. Damage includes fabric or leather tearing furniture frame breakage burns or permanent stains and missing furniture pieces.

Electrical Appliances

Fair wear and tear includes natural decrease in cooling efficiency over time motor sound change after years of use and lifespan expiration. Damage includes external part breakage damage from misuse or not following instructions and missing remotes or accessories.

Security Deposit Holding Service in Ejar Platform

The General Authority for Real Estate launched the security deposit holding service through the Ejar platform as one of the Real Estate Brokerage System requirements. The service aims to protect both parties' rights and organize the deposit recovery mechanism fairly and transparently.

How the Service Works

When the real estate broker registers the contract and specifies the deposit amount a notification appears to the tenant requiring payment of the deposit value from their platform wallet. The tenant must fund their wallet before approving the contract for the deposit amount to be automatically reserved. After contract documentation the system confirms the reservation process and shows the reserved deposit amount in the tenant's wallet.

Service Features

Holding the deposit with Ejar as a neutral third party between landlord and tenant. Enabling damage value deduction from the deposit for the landlord or returning the amount to the tenant after both parties agree. Relying on the agreed handover form when recovering the deposit. Regulating the rental process with effective governance. Facilitating rental process procedures and electronic documentation. Reducing disputes related to unit deposit insurance.

Deposit Recovery

Upon contract termination or cancellation the unit handover form agreed upon by both parties is relied upon. If both parties agree on the unit's condition the reserved amount or part of it is automatically transferred to the landlord as compensation or returned to the tenant as available balance in their electronic wallet.

Electronic Handover Service

The Ejar platform launched the electronic property unit handover service to enable rental process parties to document the residential unit's condition upon receipt and delivery. This service is the optimal solution to prevent disputes over the deposit amount.

How the Service Works

At the contract's start the landlord or tenant enters Ejar or through the link sent via text messages. The receipt form is filled out detailing the rental unit's condition. If there are notes they can be written and photos attached showing the unit's condition. Both parties agree on the form within seven days of contract documentation.

At Contract End

The same mechanism repeats at the contract's end where the delivery form is filled and compared with the receipt form. If differences exist it is determined whether they are fair wear and tear or damage requiring compensation. The service is available for seven days after contract termination.

Importance of Photo Documentation

The most important point in this service is the ability to attach photos. Having photos of a table scratch or carpet stain before the tenant's entry protects them from later deduction of its value. Therefore we strongly recommend photographing every part of the unit in detail at receipt and keeping the photos.

Deposit Dispute Resolution Mechanism

The Real Estate Brokerage System organized a clear mechanism for resolving disputes between landlord and tenant regarding the deposit and damage assessment.

First Stage Direct Agreement

The rented property's damage value is estimated by agreement between both parties according to the form prepared by the General Authority for Real Estate. If both parties agree on the damage value it is deducted from the deposit and the remainder returned to the tenant.

Second Stage Specialized Experts

In case of disagreement both parties can resort to specialized experts determined by the General Authority for Real Estate. These experts are certified appraisers who assess damages impartially. Both parties share the experts' fees equally.

Third Stage Competent Court

If both parties do not agree to accept the experts' solution they have the right to resort to the competent court. The contract documented in Ejar is considered an executive document which facilitates litigation procedures and rights recovery.

Execution Court Role

Contracts documented in the Ejar platform are considered executive documents. This means the tenant can file a financial claim for due amounts through the Execution Court directly without going through full traditional litigation procedures. The tenant has the right to recover the cash deposit within 30 days of delivery after deducting only proven damages.

Tenant Rights in the Security Deposit

The Saudi system guarantees the tenant a set of rights related to the security deposit that they should be aware of.

Right to Full Amount Recovery

The tenant has the right to recover the full deposit amount when the landlord receives the property unit as it was before the rental considering fair wear and tear. The landlord has no right to deduct any amount for fair wear and tear.

Right to Object to Deductions

If the tenant believes the landlord is making undeserved deductions they have the right to object and resort to experts or court. The landlord must prove damages with actual repair invoices not random estimates.

Right to Legal Claim

If the owner refuses to return the deposit the tenant can file a request through Ejar to recover the amount. If there are no claims supported by repair invoices for actual damage the court rules to return the amount to the tenant considering the contract an executive document.

Right to Documentation

The tenant has the right to document the unit's condition with photos and video at receipt and delivery and keep them as evidence.

Landlord Rights in the Security Deposit

Just as the system protects the tenant it also protects the landlord's rights to compensation for actual damage.

Right to Damage Compensation

The landlord has the right to deduct the cost of repairing actual damage resulting from misuse or negligence from the deposit. However the deduction is for repair cost not complete renovation.

Right to Claim the Difference

If the damage cost exceeds the deposit amount the landlord has the right to claim the difference from the tenant legally with proof of damages and costs.

Right to Use Handover Form

The landlord has the right to rely on the agreed delivery form as evidence of the unit's condition when received from the tenant.

Tips for Tenants to Protect Their Rights

Before Signing the Contract

Inspect the unit carefully before signing and record every note. Photograph every room and every existing defect with date. Ensure notes are included in the official receipt report. Keep a copy of all documents and photos.

During the Rental Period

Maintain the unit and use it normally. Immediately inform the landlord of any faults needing maintenance. Do not make major modifications without written consent. Keep a record of correspondence with the landlord.

Before Delivery

Clean the unit well before delivery. Photograph the entire unit to document its condition. Fix minor damages if possible to avoid deductions. Prepare an inventory of existing items.

At Delivery

Attend the inspection process with the landlord. Use the handover form in Ejar. Do not sign any waivers without understanding them. Request a receipt for key handover.

Tips for Landlords to Protect Their Rights

Before Renting

Document the unit's condition with detailed photos and video. Prepare an inventory list of contents and furniture. Use a contract documented in the Ejar platform. Set an appropriate deposit amount matching the contents' value.

During the Rental Period

Make periodic visits with prior notice to the tenant. Follow up on maintenance requests and repair them on time. Keep a record of all correspondence and repairs.

At Contract End

Use the delivery form in Ejar to document the condition. Compare with the initial receipt form. Obtain invoices for any required repairs. Be fair in assessing damages and distinguish between fair wear and tear and damage.

Common Mistakes in Handling Security Deposits

Tenant Mistakes

Not documenting the unit's condition with photos at receipt. Not reporting pre-existing defects. Neglecting simple maintenance which turns into major damage. Signing a delivery report without reading it. Not keeping a copy of the contract and documents.

Landlord Mistakes

Deducting the entire deposit without real justification. Not distinguishing between fair wear and tear and damage. Not documenting the unit's condition before renting. Demanding renovation cost instead of repair. Delaying deposit return without reason.

Frequently Asked Questions

Can the landlord deduct painting costs from the deposit?

If paint fading resulted from time passage and sunlight it is fair wear and tear and the landlord cannot deduct it. However if there are drawings permanent stains or large holes they can deduct only the repair cost not repainting the entire apartment.

When is the tenant entitled to a full deposit refund?

The tenant is entitled to a full refund when delivering the unit in the same condition as received considering expected fair wear and tear.

What do I do if the landlord refuses to return the deposit?

You can file a request through the Ejar platform to recover the amount. If the contract is documented in Ejar it is an executive document and you can go directly to the Execution Court.

Is the security deposit mandatory in rental contracts?

No it is not mandatory. It is an optional condition agreed upon by landlord and tenant. If no deposit amount is specified it does not affect the contract documentation process.

How is damage value determined in case of dispute?

First the parties try to agree directly. If they do not agree they can resort to specialized experts determined by the General Authority for Real Estate. If they reject the experts' solution they can go to court.

Can the landlord deduct cleaning costs from the deposit?

Normal cleaning is not deducted from the deposit because it is expected after the residence period. However if the tenant leaves the unit in very poor condition requiring specialized cleaning the actual cost can be deducted.

How long is the deposit held in Ejar?

The amount is held with Ejar throughout the contract period and returned to the tenant or deducted from after the contract ends and the unit's condition is agreed upon.

Does appliance lifespan affect compensation?

Yes lifespan must be considered. If an 8-year-old appliance breaks the landlord cannot claim a new appliance price but only its remaining value with depreciation.

Conclusion

The security deposit in furnished apartments is not the landlord's property but a trust to protect their rights in case of actual damage. The Saudi system is clear in distinguishing between fair wear and tear which is not deducted from the deposit and damage which the tenant is responsible for. The Ejar platform has provided excellent tools to protect both parties through the deposit holding service and electronic handover service with the ability to attach photos for documentation.

The key to avoiding disputes is proper documentation from the start. Photograph everything at receipt keep documents and report any problems immediately. At delivery be objective and distinguish between what is normal and what is damage. If a dispute occurs the system provides clear resolution paths from direct agreement to specialized experts to the competent court. The contract documented in Ejar is an executive document that protects your rights and facilitates their recovery.