Security Deposit Law
What District of Columbia landlords must do with security deposits — the cap, interest, return deadline, account rules, and penalties — with citations to the statute itself.
Verified as of June 11, 2026
This page is general information, not legal advice. Statutes change — verify with the cited sources or an attorney.
Deposit cap
One month's rent, and you can only charge it once.
Interest
Yes. Deposits must sit in an interest-bearing D.C. escrow account, and interest is paid to tenants whose tenancy lasted 12 months or more.
Return deadline
45 days after the tenancy ends — either return the deposit with interest, or send written notice that you intend to withhold.
A security deposit (or any other payment taken as security for the tenant's obligations) cannot exceed the first full month's rent for the unit, and it may be charged only once per tenancy. The definition is broad — it covers all monies paid as security, not just amounts labeled 'security deposit.'
Interest starts accruing the day the tenant pays and must be at least the bank's statement savings rate prevailing each January 1 and July 1 for each 6-month period. Interest is due and payable at the end of any tenancy of 12 months or more; if you invest the deposit at a rate above the statement savings rate, you may keep up to 30% of the excess interest for administrative costs.
14 DCMR § 311.1 · 14 DCMR § 311.2 · 14 DCMR § 311.1–311.2 · 14 DCMR § 308.3
Within 45 days you must either tender the deposit plus interest without being asked, or deliver written notice (personally or by certified mail to the tenant's last known address) of your intent to withhold. If you withhold, you must send the itemized statement of repairs/uses and refund any balance within 30 days after that notice. You may inspect the unit within 3 days (excluding weekends and holidays) before or after termination, with at least 10 days' written notice of the inspection.
14 DCMR § 309.1 · 14 DCMR § 309.2, § 309.4 · 14 DCMR § 309.1–309.4 · 14 DCMR § 310.1, § 310.4
All deposit money must be placed in an interest-bearing escrow account held in trust at a federally or state-insured financial institution located in the District, used solely for holding tenant deposits. An owner of multiple residential buildings may use one escrow account for all of them, but the account cannot be assigned or used as security for loans.
Failure to comply with the 45-day/30-day requirements is prima facie evidence the tenant gets the entire deposit back with interest. A landlord who wrongly withholds is liable for the amount withheld — trebled if the withholding was in bad faith — and unpaid escrow interest is likewise owed (trebled for bad faith), with a civil fine of up to $5,000 per violation for willful failure to pay interest.
14 DCMR § 309.3, § 309.5 · 14 DCMR § 311.2 · D.C. Code § 42-3502.17(b)
The District is a single jurisdiction, so there are no city- or county-level deposit ordinances layered on top — 14 DCMR §§ 308-311 plus D.C. Code § 42-3502.17 are the complete local rule set. Note the built-in carve-out: § 308's cap/escrow/disclosure rules do not apply to federal or D.C. agency-leased units or units with federally subsidized rents (14 DCMR § 308.8).
The cap covers any payment taken as security, whatever you call it, and applies once per tenancy — you cannot recharge a deposit mid-tenancy or stack extra security fees on top.
Deposits go into an interest-bearing trust escrow at an insured D.C. financial institution, and the lease or deposit receipt must clearly state the terms and conditions under which the deposit was taken.
At the end of each calendar year you must post in the building lobby and rental office where tenants' deposits are held and the prevailing rate for each 6-month period that year; at move-out you must list the interest rate for each 6-month period of the tenancy.
To set deductions you may inspect within 3 days (excluding Saturdays, Sundays, and holidays) before or after the tenancy ends, but you must give the tenant written notice of the inspection's time and date at least 10 days in advance.
The deposit cap, escrow, and disclosure rules of § 308 do not apply to dwelling units leased by federal or D.C. agencies or to units with federally subsidized rents.
You cannot demand a security deposit from a tenant who was already in the unit on July 17, 1985 if no deposit had been demanded or received before that date (exceptions for newly constructed or exempt units).
Violates the escrow mandate — deposits must be held in trust, in an interest-bearing account at an insured D.C. financial institution, used solely for deposits; commingling undermines any later withholding and exposes you to the full-return presumption and OAH complaints.
Noncompliance is prima facie evidence the tenant is entitled to the full deposit plus interest, and a bad-faith withholding triggers treble damages.
The 30-day itemization (cost of each repair or other use) is a separate requirement; missing it also constitutes prima facie evidence the tenant gets everything back with interest.
D.C. Code expressly forbids withholding for the replacement value of items damaged by ordinary wear and tear, defined as deterioration from intended use including age-related breakage; such deductions are recoverable by the tenant and can evidence bad faith.
You owe the accrued interest (statement savings rate, reset each Jan 1/Jul 1); bad-faith refusal trebles the interest owed, and a willful violation carries a civil fine of up to $5,000 per violation.
One month's rent — specifically, no more than the first full month's rent charged to that tenant — and it can be charged only once per tenancy. The cap counts every payment taken as security for the tenant's obligations, not just money labeled 'security deposit' (14 DCMR § 308.2).
45 days after the tenancy ends. Within that window you must either return the deposit plus interest without being asked, or deliver written notice of intent to withhold (personally or by certified mail). If you withhold, you then have 30 days from that notice to send an itemized statement and refund the balance (14 DCMR § 309).
Yes. Deposits must sit in an interest-bearing escrow account at an insured D.C. financial institution, earning at least the statement savings rate prevailing each January 1 and July 1. Interest must be paid out at the end of any tenancy of 12 months or more, minus lawful deductions; if you invest at a higher rate, you may keep up to 30% of the excess interest for administrative costs (14 DCMR §§ 308.3, 311.1-311.2).
No. D.C. Code § 42-3502.17(c) prohibits withholding for the replacement value of items damaged by ordinary wear and tear — deterioration from intended use, including breakage or malfunction due to age. Deduct only for damage beyond that, documented in your 30-day itemized statement.
Yes — an interest-bearing escrow account held in trust at a federally or state-insured financial institution located in the District, used solely for holding deposits. If you own multiple residential buildings, you may pool their deposits into one escrow account, but you cannot assign the account or pledge it for loans (14 DCMR §§ 308.3, 308.5, 311.3).
There is no separate pet-deposit allowance in effect: because § 308 caps all payments taken as security at one month's rent total, any pet deposit must fit within that single one-month cap. The Pets in Housing Amendment Act of 2024 (D.C. Law 25-308) would authorize an additional refundable pet deposit of up to 15% of monthly rent, but as of June 2026 that provision is listed as 'Not Funded' on the official D.C. Code and has not been implemented.
This page is general information, not legal advice. Statutes change — verify with the cited sources or an attorney.
Statute facts on this page were verified against the cited official sources on June 11, 2026.
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