Basic Security Deposit Law for Residential Tenants in the District of Columbia
(current as of 11/29/2020)
A landlord generally may charge no more than one month's rent as security deposit. 14 DCMR 308.2.
Security deposits generally must be held 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. At the end of each calendar year, a landlord generally is required to post, in the lobby and in the rental office, where the deposit is being held, and what the interest rate was for each six-month period in the prior year. 14 DCMR 308.7. At the end of the tenancy, a landlord generally is required to list for the tenant the interest rate for each 6-month period during the tenancy. 14 DCMR 308.7.
A tenant is entitled to interest on the security deposit if the duration of the tenancy was at least twelve months. 14 DCMR 311.2. If the security deposit was held in an interest-bearing account, as required, actual accrued interest conveys to the tenant; otherwise, interest is based on the court judgment interest rate. 1 DCMR 2941.3.
No more than 45 days after the end of a tenancy, a landlord must either 1) return the security deposit plus any interest due or 2) tell the tenant in writing of the landlord’s intention to withhold the deposit. 14 DCMR 309.1. Then, no more than 30 days after that notification, the landlord must return the funds due to the tenant, along with “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.
A landlord can only withhold a security deposit for reasons specified in writing (usually in the lease) at the beginning of the tenancy. 14 DCMR 308.6 and 14 DCMR 309.1.
If the landlord withholds a security deposit in bad faith, the landlord is liable to the tenant for three times the amount of the security deposit. 14 DCMR 309.5.
A tenant who seeks to challenge a landlord’s withholding of a security deposit can either file a Tenant Petition at the D.C. Housing Resource Center, or a Statement of Claim in D.C. Superior Court (usually in small claims court). Those forms are shown in the right-hand column of this page.