District of Columbia security deposit laws are detailed under the D.C. Code Title 42, Chapter 35, Section 42-3502.17. These laws provide clear guidelines on how landlords must handle security deposits, ensuring both landlords and tenants are aware of their rights and responsibilities under D.C. law.
In D.C., landlords can charge a maximum of one month's rent as a security deposit.
Residential landlords must hold tenant security deposits in an interest-bearing escrow account in the District of Columbia insured by the state or federal government. Residential security deposits may be commingled with each other but not with other types of funds.
Within 45 days after receiving the deposit, the landlord must notify the tenant in writing of the location of the account where the deposit is held, including the name and address of the financial institution.
Landlords are required to pay tenants interest on security deposits. The interest rate must be the same as that offered by the institution where the deposit is held. The interest must be paid to the tenant annually, or it can be applied toward the tenant’s rent with the tenant's approval.
The security deposit must be returned to the tenant within 45 days after they vacate the property. If deductions are made, the landlord must provide an itemized statement of the deductions within this 45-day period. Any remaining portion of the deposit, along with accrued interest, must be returned to the tenant within this timeframe.
Landlords must provide an itemized statement of deductions for any portion of the security deposit withheld. This statement must be delivered within 45 days after the tenant moves out. If the landlord fails to provide this statement within the given timeframe, they forfeit the right to withhold any part of the deposit.
If the tenant disputes the deductions, they may file an action in small claims court.
Landlords in D.C. can deduct from the security deposit for:
Normal wear and tear cannot be deducted.
If a landlord fails to comply with the security deposit laws, including returning the deposit or providing an itemized statement of deductions, they may be liable for up to two times the amount of the security deposit.
Security Deposits Held for Longer Than 7 Years: If the deposit is held for more than 7 years, the landlord must return the principal deposit and any accrued interest to the tenant.
DISCLAIMER: Security deposit laws may vary by county or municipality. The information provided by Build Whale, Inc. is for general informational purposes only and should not be construed as legal advice. It is not a substitute for consultation with a qualified attorney. While we strive to provide accurate and up-to-date information, Build Whale, Inc. makes no guarantees or warranties regarding the accuracy, completeness, or reliability of the information presented.