Quick Facts | Answer |
Maximum / Limit | 1 Month’s Rent |
Receipt Requirement | Yes |
Inventory Requirement | None |
Interest Requirement | Yes (After 1 Year) |
To learn about laws on security deposit returns in Washington D.C., click here.
Maximum Security Deposit Allowed in Washington D.C.
Washington D.C. law limits the maximum security deposit to one month’s rent.
Can Landlords Charge an Additional Pet Deposit in Washington D.C.?
In Washington D.C., landlords can charge a pet deposit, except for service dogs and emotional support animals. However, the total security deposit cannot exceed one month’s rent. Landlords cannot exceed the limit by giving them another name like “pet deposit” or “damage deposit.”
This law does not prevent landlords from adding a monthly pet premium.
How Much Rent Can a Landlord Collect Upfront in Washington D.C.?
Washington D.C. law does not address the amount of rent that can be collected upfront.
Security Deposit Collections in Washington D.C.
When collecting a security deposit in Washington D.C., landlords must:
- Include the terms and conditions of the deposit in the lease agreement or receipt
- Place the security deposit in an interest-bearing escrow account
- Provide a receipt for payment, except when made by check
- Post and maintain a statement regarding interest rates
- Provide written notice of any pending requests to change the rent ceiling
- Provide the tenant with a written disclosure
When any tenant submits an application to lease a rental unit, landlords must provide a written disclosure that states the amount of the security deposit. Instructions and the required attachments are provided by the Department of Housing and Community Development.
Before accepting a security deposit, landlords must provide written notice of any pending applications for adjustments to the rent ceiling. The notice must include:
- The current rent ceiling
- The new rent ceiling requested in the petition
- The petition number and filing date
- Any repairs or renovations planned as part of the petition
Do Landlords Have to Provide a Receipt for the Security Deposit in Washington D.C.?
Landlords in Washington D.C. must provide a receipt for the security deposit, except for payments made by personal check.
The receipt must include:
- The amount and purpose of the payment
- The date the payment was received
What Obligations Do Landlords Have to Establish the Condition at Move-in in Washington D.C.?
Washington D.C. law does not have specific obligations before a tenancy related to the condition of the rental unit. While other states like Nevada have pre-tenancy obligations like a written inventory of damages, Washington D.C. does not.
Landlords are always required to ensure their property is habitable and compliant with state and local housing codes.
Security Deposit Holdings in Washington D.C.
Landlords are required to hold security deposits in an interest-bearing escrow account in a financial institution within Washington D.C. insured by a federal or state agency. The security deposits cannot be commingled with the landlord’s own funds.
Are Tenants Entitled to Interest on Their Security Deposit in Washington D.C.?
Tenants are entitled to earn interest on their security deposit if their tenancy is longer than 12 months. The statement savings rate earned by the institution on January 1st and July 1st should be used for the following 6 months. Interest accrues from the first day of the lease term.
If a landlord holds a security deposit in an account that gains interest above the statement savings rate, they can keep up to 30% of the excess interest as an administration fee.
The landlord must post a notice in the lobby and rental office (or similar location) at the end of each calendar year that states where the security deposits are held and the prevailing interest rate for each 6-month period. Each time a tenant moves out, the landlord must add the interest rate that applied to each 6-month period of their lease term.
How Are Security Deposits Accounted for in Washington D.C.?
Security deposits are not considered taxable income when they are collected.
What Happens to a Security Deposit When the Property is Sold in Washington D.C.?
When a property is sold in Washington D.C., the seller must transfer the security deposit to the new owner, who must handle it according to the same rules.
Before an apartment is sold in Washington D.C., the seller must first give the tenant the option to purchase their rental unit. (See Conversion and Sales)
Sources
- 1 14 DCMR § 308
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…any security deposit…shall not exceed an amount equivalent to the first full month’s rent…
Source Link - 2 14 DCMR § 308
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…“security deposit” shall mean all monies paid to the owner by the tenant as a deposit or other payment made as security for performance of the tenant’s obligations in a lease or rental of the property.
Source Link - 3 D.C. Code § 42-3502.22
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At the time a prospective tenant files an application to lease any rental unit, the housing provider shall provide…a disclosure form published by the Rent Administrator…
Source Link - 4 14 DCMR § 315
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Prior to the acceptance of a…security deposit, the owner of the habitation shall provide written notice of any requests that are pending for an adjustment in the rent ceiling…
Source Link - 5 14 DCMR § 315
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The notification shall include the current rent ceiling, the new rent ceiling requested in the petition, the petition filing date and petition number, and the nature of any repairs or rehabilitation planned in the dwelling unit as part of the petition.
Source Link - 6 14 DCMR § 306
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…the owner shall provide written receipts for all monies paid to him or her by the tenant as rent, security, or otherwise, unless the payment is made by personal check.
Source Link - 7 14 DCMR § 306
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Each receipt…shall state the…exact amount received…date the monies are received…purpose of the payment…
Source Link - 8 14 DCMR § 308
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…security 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.
Source Link - 9 14 DCMR § 311
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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…
Source Link - 10 14 DCMR § 311
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…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.
Source Link - 11 14 DCMR § 311
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If the housing provider invests the security deposit in an account with an interest rate that exceeds that of the statement savings rate…may apply up to 30% of the excess interest for administrative costs or other purposes.
Source Link - 12 14 DCMR § 308
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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.
Source Link - 13 14 DCMR § 308
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At the end of a tenant’s tenancy, the housing provider shall list for the tenant the interest rate for each 6-month period during the tenancy.
Source Link - 14 D.C. Code § 42-3404.02
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Before an owner of a housing accommodation may sell…shall give the tenant an opportunity to purchase the housing accommodation…
Source Link