Overview
The District of Columbia has robust security deposit laws that aim to protect tenants while ensuring landlords have the financial coverage they need for damages or unpaid rent. D.C. law outlines specific requirements for how deposits are collected, held, and returned.
Under D.C. Municipal Regulations Title 14, Chapter 3 and D.C. Code § 42–3502.17, landlords must follow detailed rules regarding the handling of security deposits. Violations can result in financial penalties.
This guide covers:
How much landlords can charge
Where deposits must be stored
Rules for returning security deposits
Penalties for non-compliance
Related Statute: D.C. Code § 42–3502.17
1. Security Deposit Limits & Storage Requirements
Maximum deposit: Landlords may charge no more than one month’s rent as a security deposit.
Storage requirements: Deposits must be placed in an interest-bearing escrow account in a financial institution located in the District.
Tenant notification: Landlords must disclose in writing the name and address of the financial institution where the deposit is held. This must be provided within 30 days of receiving the deposit.
Law Reference: D.C. Code § 42–3502.17(a)-(c)
2. Security Deposit Returns & Allowable Deductions
Return deadline: Security deposits must be returned within 45 days of the end of the tenancy.
Permissible deductions: Landlords may deduct for unpaid rent or the cost of repairing damages beyond normal wear and tear.
What landlords cannot deduct: Normal wear and tear, such as faded paint or minor scuffs, cannot be deducted.
Itemized statement required: An itemized list of any deductions, along with supporting documentation, must be provided within 30 days of lease termination.
Law Reference: D.C. Code § 42–3502.17(e)-(f)
3. Interest Payments & Documentation Requirements
Interest payments: Landlords are required to pay annual interest on security deposits. The rate is determined annually by the D.C. Department of Housing and Community Development.
Move-in condition report: Landlords must conduct a move-in inspection and provide a written report detailing the unit’s condition.
Tenant review period: Tenants should review the report and note any discrepancies upon move-in.
Failure to provide documentation: Failure to provide move-in documentation or itemized deductions may result in forfeiture of the deposit.
Law Reference: D.C. Code § 42–3502.17(d)
4. Penalties for Mishandling Security Deposits
D.C. imposes strict penalties for landlords who fail to comply with deposit laws.
Failure to return the deposit within 45 days may result in legal action and repayment of the full deposit plus interest and possible damages.
Failure to comply with interest and escrow requirements may result in the forfeiture of the right to withhold any portion of the deposit.
Law Reference: D.C. Code § 42–3502.17
Key Takeaways
Landlords may not charge more than one month’s rent as a security deposit.
Deposits must be stored in an interest-bearing escrow account in the District.
Deposits must be returned within 45 days, and any deductions must be itemized and provided within 30 days.
Annual interest must be paid to tenants based on the rate set by the city.
Non-compliance can lead to penalties, including repayment of the full deposit, interest, and damages.
By understanding and following D.C. security deposit laws, landlords can avoid costly violations, and tenants can ensure their deposits are handled fairly.
Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. Readers should not act or refrain from acting based on any information included in this post without seeking legal counsel or other professional guidance specific to their situation. The information is provided “as is” without any representations or warranties of any kind, express or implied, including but not limited to the accuracy, completeness, or reliability of the content. Laws and regulations may change and vary by jurisdiction.
