District of Columbia Security Deposit Law

Maximum deposit

A security deposit may not exceed the first full month's rent and may be charged only once (14 DCMR § 308.2; D.C. Code § 42-3502.17(a)). (14 DCMR § 308.2, 308.8, D.C. Code § 42-3502.17(a))

One month's rent (the first full month's rent charged), charged only once

Return deadline

Within 45 days after the tenancy ends, the landlord must return the deposit with interest or notify the tenant in writing of an intent to withhold, then refund any balance with an itemized statement within 30 days after that notice (14 DCMR §§ 309.1-309.2). (14 DCMR §§ 309.1, 309.2, D.C. Code § 42-3502.17(e) (45-day notice of unpaid amounts, added by D.C. Law 26-156))

Itemized statement of deductions

A landlord who withholds any of the deposit must give the tenant an itemized statement of each repair or other use and its cost when refunding the balance (14 DCMR § 309.2). (14 DCMR § 309.2, D.C. Code § 42-3502.17(e)(2))

Interest on the deposit

Landlords must hold deposits in an interest-bearing D.C. escrow account and pay the tenant interest at no less than the statement savings rate when a tenancy of 12 months or more ends (14 DCMR §§ 308.3, 311.1-311.2). (14 DCMR §§ 308.3, 308.7, 14 DCMR §§ 311.1, 311.2)

Deposits must be held in an interest-bearing escrow account at a D.C. financial institution; interest accrues at no less than the bank's statement savings rate (reset each Jan. 1 and July 1) and is payable at the end of tenancies of 12 months or more; the landlord must post where deposits are held and the rates

Penalty for wrongful withholding

A landlord who fails to return a deposit owed is liable for the amount withheld, or treble damages if it acted in bad faith (14 DCMR § 309.5). (14 DCMR §§ 309.3, 309.5, 14 DCMR § 311.2, D.C. Code § 42-3502.17(b) (OAH may adjudicate deposit complaints))

Where the deposit is held

In D.C. every security deposit must be held in trust in an interest-bearing escrow account, used solely for deposits, at an insured financial institution located in the District (14 DCMR §§ 308.3, 308.5). (14 DCMR §§ 308.3, 308.5, D.C. Code § 42-3502.17(a))

Deposits must sit in an interest-bearing escrow account held in trust, used only for deposits, at a federally or state-insured financial institution in D.C.; an owner of several buildings may use one escrow account for all of them.

Receipt or written notice of the deposit

D.C. housing providers must spell out the deposit's terms in the lease or on the deposit receipt and post yearly, in the lobby and rental office, where deposits are held and what interest they earned (14 DCMR §§ 308.6-308.7). (14 DCMR §§ 308.6, 308.7)

The lease or the deposit receipt must state the terms and conditions under which the deposit was paid. Each year-end the housing provider must post in the lobby and rental office where deposits are held and the interest rate for each 6-month period, and at move-out must list those rates for the tenant.

Move-in condition checklist

D.C. has no move-in checklist rule, though a landlord who wants a move-out inspection must give the tenant at least 10 days' written notice and hold it within three business days of the tenancy's end (14 DCMR § 310). (14 DCMR §§ 310.1-310.4 (move-out inspection only))

Pet deposits

D.C.'s pet-deposit law is not yet in force because it awaits budget funding, so for now any deposit taken for a pet is part of the single security deposit capped at one month's rent (14 DCMR §§ 308.1-308.2; D.C. Code § 42-3505.10). (14 DCMR §§ 308.1-308.2, D.C. Code § 42-3505.10(b-3)-(b-4) ('Not Funded'))

Nonrefundable fees

D.C. limits pre-lease charges to a single application fee capped at $50 plus inflation, requires landlords to say up front whether each fee or deposit is refundable, and bans fees for services the landlord must provide anyway (D.C. Code § 42-3505.10(a)-(b-2)). (D.C. Code § 42-3505.10(a)(1), (b), (b-2), (c), 14 DCMR § 309.1(1))

Before a lease is signed the only allowed charge is an application fee of up to $50 (CPI-adjusted; $54 for 2026), refundable within 14 days if no screening is done. The provider must disclose in advance every fee and deposit and whether each is refundable, and since Aug. 14, 2026 may not charge any fee for services needed to keep the unit habitable (utilities, trash, locks, third-party billing admin fees). Any 'similar payment' made as a condition of tenancy must be returned with the deposit.

Small-landlord exemptions

D.C.'s deposit rules have no exemption for small or owner-occupant landlords; the only carve-out is for units leased by government agencies or with federally subsidized rents (14 DCMR § 308.8). (14 DCMR § 308.8)

Deposit alternatives and installments

D.C. has no law regulating deposit insurance, surety bonds or installment deposits, though landlords may not demand a holding deposit from an applicant using a government housing voucher (D.C. Code § 42-3505.10(b)(5)). (D.C. Code § 42-3505.10(b)(5), 14 DCMR § 308 (silent on alternatives))