Washington DC security deposit rules

Caps and fees

A security deposit may not exceed the first full month's rent and may be charged only once.

“any security deposit or other payment required by an owner as security for performance of the tenant’s obligations in a lease or rental of a dwelling unit shall not exceed an amount equivalent to the first full month’s rent charged that tenant for the dwelling unit, and shall be charged only once by the owner to the tenant.”
14 DCMR § 308.2

Where the money is held

Deposits must be placed in an interest-bearing escrow account held in trust at an insured financial institution in the District of Columbia, solely for holding deposits.

“shall be deposited by the owner in an interest bearing escrow account established and held in trust in a financial institution in the District of Columbia insured by a federal or state agency for the sole purposes of holding such deposits or payments.”
14 DCMR § 308.3

The lease, agreement or receipt must clearly state the terms and conditions under which the deposit was paid.

“For each security deposit or other payment covered by this section, the owner shall clearly state in the lease or agreement or on the receipt for the deposit or other payment the terms and conditions under which the payment was made.”
14 DCMR § 308.6

Housing providers must post annually in the lobby and rental office where deposits are held and the prevailing rate for each 6-month period, and list the rates for the tenant at the end of the tenancy.

“The housing provider shall post in the lobby of the building and rental office at the end of each calendar year, the following information: Where the tenants’ security deposits are held and what the prevailing rate was for each 6-month period over the past year.”
14 DCMR § 308.7

When a prospective tenant applies, the landlord must disclose the amount, interest rate and means of return of any security deposit.

“When you apply to lease a rental unit, the landlord must disclose: (a) the rent; (b) whether the unit is rent-controlled; (c) how often the rent may be increased; (d) housing code violations that are less than a year old or remain unabated; (e) the amount of any application fee; (f) the amount, interest rate, and means of return for any security deposit”
D.C. Code § 42-3502.22; 14 DCMR §§ 300-399 (OTA D.C. Tenant Bill of Rights, rev. 2026-09-25)

Interest

Interest accrues from payment at not less than the escrow bank's statement savings rate prevailing on January 1 and July 1 for each 6-month period, and applies to deposits, decorating fees and similar deposits or fees.

“shall accrue at not less than the statement savings rate then prevailing on January 1st and on July 1st for each 6-month period (or part thereof) of the tenancy which follows those dates. On those dates, the statement savings rate in the District of Columbia financial institution in which the escrow account is held shall be used.”
14 DCMR § 311.1

Deposit interest is due and payable at the end of any tenancy lasting 12 months or more, unless applied to deductions under 14 DCMR § 309; bad-faith failure to pay makes the provider liable for treble the interest.

“Interest on an escrow account shall be due and payable by the owner to the tenant upon termination of any tenancy of a duration of twelve (12) months or more, unless an amount is deducted under procedures set forth in paragraph (2) (14 DCMR §§ 309.1 and 309.2).”
14 DCMR § 311.2

A housing provider who willfully fails to pay deposit interest owed is subject to a civil fine of up to $5,000 per violation.

“Any housing provider who willfully violates the provisions of this section by failing to pay interest on a security deposit escrow account that is rightfully owed to a tenant in accordance with the requirements of this section shall be subject to a civil fine of not more than $ 5000 for each violation.”
14 DCMR § 311.2

Getting it back

Within 45 days after the tenancy ends, the owner must either return the deposit with any interest due or notify the tenant in writing (personally or by certified mail) of intent to withhold for proper expenses.

“Within forty-five (45) days after the termination of the tenancy, the owner shall do one of the following: (1) Tender payment to the tenant, without demand, any security deposit and any similar payment paid by the tenant as a condition of tenancy in addition to the stipulated rent”
14 DCMR § 309.1

Within 30 days after giving the withholding notice, the owner must refund the balance with unused interest and give an itemized statement of repairs and their costs.

“shall tender a refund of the balance of the deposit or payment, including interest not used to defray such expenses, and at the same time give the tenant an itemized statement of the repairs and other uses to which the monies were applied and the cost of each repair or other use.”
14 DCMR § 309.2

An owner who inspects to determine deductions must do so within three business days before or after the tenancy ends, with written notice delivered at least 10 days in advance.

“In order to determine the amount of the security deposit or other payment to be returned to the tenant, the owner may inspect the dwelling unit within three (3) days, excluding Saturdays, Sundays, and holidays, before or after the termination of the tenancy.”
14 DCMR §§ 310.1, 310.4

A housing provider may not withhold a deposit for replacement value of items damaged by ordinary wear and tear, defined as deterioration from intended use including age-related breakage.

“No housing provider shall withhold a security deposit for the replacement value of apartment items that are damaged due to ordinary wear and tear.”
D.C. Code § 42-3502.17(c)

Within 45 days after tenancy ends, the provider must notify the tenant in writing (personally, by email, or certified mail) of alleged unpaid amounts with photos or other documentation and a statement of the right to dispute; the tenant has 30 days to dispute and the provider must respond within 10 days.

“Tenants shall have 30 calendar days after the date the housing provider's notice is served to dispute the alleged unpaid amounts. A tenant may provide to the housing provider any evidence that the alleged unpaid amount is inaccurate or incorrectly attributed to the tenant.”
D.C. Code § 42-3502.17(e)

If the landlord breaks the rules

Failure to comply creates prima facie entitlement to full return; a provider wrongfully withholding is liable for the amount withheld, or treble damages in bad faith.

“Any housing provider violating the provisions of this section by failing to return a security deposit rightfully owed to a tenant in accordance with the requirements of this section shall be liable for the amount of the deposit withheld or, in the event of bad faith, for treble damages.”
14 DCMR §§ 309.3, 309.5

The Office of Administrative Hearings may adjudicate complaints for non-return of security deposits and non-payment of deposit interest.

“The Office of Administrative Hearings may adjudicate complaints for the non-return of tenant security deposits and for the nonpayment of interest on tenant security deposits pursuant to section 2908 of the Housing Regulations of the District of Columbia (14 DCMR §§ 308 through 311).”
D.C. Code § 42-3502.17(b)

Who is covered

For tenants occupying a unit on July 17, 1985 from whom no deposit had been collected, no deposit may be demanded (except newly constructed or certain exempt units).

“No person shall demand or receive a security deposit from any tenant for a rental unit occupied by the tenant upon July 17, 1985, where no security deposit had been demanded or received of the tenant for the rental unit before July 17, 1985”
D.C. Code § 42-3502.17(a)

Two official texts. DC’s deposit regulations (14 DCMR 308–311) were written before later amendments to D.C. Code § 42-3502.17, and the statute’s notice rules (email allowed, a 30-day window to dispute deductions) now read differently from 14 DCMR § 309.1. Both are quoted above. Where they differ, ask the DC Office of the Tenant Advocate which applies to you.

What to do

1. Keep your lease, the deposit receipt and any move-in checklist — several of these rules depend on them.
2. Photograph the unit when you move in and when you move out.
3. Give your landlord a forwarding address in writing when you leave.
4. If the deadline passes, send a written demand citing the rule above before going to small claims court.