| 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 D.C. Mun. Regs. tit. 14, r. 14-308.2
-
On or after February 20, 1976, any security deposit or other payment required by an owner as security for performance of the tenant’s obligations in a lease or rental of a dwelling unit shall not exceed an amount equivalent to the first full month’s rent charged that tenant for the dwelling unit, and shall be charged only once by the owner to the tenant.
Source Link
- 2 D.C. Mun. Regs. tit. 14, r. 14-308.1
-
For purposes of this chapter, the term “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(b)
-
At the time a prospective tenant files an application to lease any rental unit, the housing provider shall provide on a disclosure form published by the Rent Administrator (or in another suitable format until a form is published) together with any documents corresponding to each item of information:
(A) The applicable rent for the rental unit;
(B) Any tenant petition or petition filed by the housing provider which is pending that could affect the rental unit, including petitions for further rent increases during the following 12 months;
(C) Any surcharges on rent for the rental unit, including capital improvement surcharges and the expiration date of those surcharges;
(D) The frequency with which rent increases for the rental unit may be implemented;
(E) The rent-controlled or exempt status of the housing accommodation, its business license, and a copy of the registration or claim of exemption together with the most recent notice filed pursuant to § 42-3502.05(g)(1)(C);
(F) All copies of housing code and property maintenance code violation reports issued by the Department of Consumer and Regulatory Affairs for the housing accommodation or rental unit within the last 12 months, or previously issued reports for violations which have but not been abated;
(G) A pamphlet published by the Rent Administrator that explains in detail using lay terminology the laws and regulations governing the implementation of rent increases and petitions permitted to be filed by housing providers and by tenants;
(H)(i) The amount of any nonrefundable application fee; and
(ii) The amount of any initial security deposit, the interest rate on the security deposit, and the means by which the security deposit is returned to the tenant when the tenant vacates the unit;
(I) Whether the housing accommodation is registered as, or in the process of converting to, a condominium or cooperative or a use that is not a housing accommodation;
(J) The disclosure of ownership information in the registration form required by § 42-3502.05(f) and (g)(1)(C);
(K) Information known or that should have been known about the presence of indoor mold contamination as defined in § 8-241.01(5) in the rental unit or common areas in the previous 3 years, unless the mold has been remediated by an indoor mold remediation professional certified and licensed by the District;
(L) A Tenant Bill of Rights published by the Office of the Tenant Advocate pursuant to § 42-3531.07(8) ; and.
(M) The form published by the Department of Buildings pursuant to section 5(b) of the Bedbug Control Act of 2022, passed on 2nd reading on November 1, 2022 (Enrolled version of Bill 24-142), which notifies a prospective tenant of any history of bedbug infestations in the building in the last 120 days; and
(N) The educational pamphlet about bedbugs published by the Department of Buildings pursuant to section 5(c) of the Bedbug Control Act of 2022, passed on 2nd reading on November 1, 2022 (Enrolled version of Bill 24-142).
Source Link - 4 D.C. Mun. Regs. tit. 14, r. 14-315
-
315.1 Prior to the acceptance of a nonrefundable application fee or security deposit, the owner of the habitation shall provide written notice of any requests that are pending for an adjustment in the rent ceiling of the habitation, as the adjustments are specifically enumerated in section 207 of the Rental Housing Act of 1985, D.C. Law 6-10, D.C. Official Code § 42-3502.07 (2001).
315.2 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.315.3A violation of this section shall be a Class 2 civil infraction pursuant to Titles I- III of the Department of Consumer and Regulatory Affairs Infractions Act of 1985. Adjudication of any infraction of this article shall be pursuant to titles I-III of the Department of Consumer and Regulatory Affairs Civil Infractions Act of 1985.
315.3 A violation of this section shall be a Class 2 civil infraction pursuant to Titles I- III of the Department of Consumer and Regulatory Affairs Infractions Act of 1985. Adjudication of any infraction of this article shall be pursuant to titles I-III of the Department of Consumer and Regulatory Affairs Civil Infractions Act of 1985.
Source Link - 5 D.C. Mun. Regs. tit. 14, r. 14-306
-
306.1 In each lease or rental of a habitation, 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.306.2Each receipt issued under this section shall state the following:
(a) The exact amount received;
(b) The date the monies are received; and
(c) The purpose of the payment.
306.3 Each receipt shall also state any amounts still due which are attributable to late charges, court costs, or any other such charge in excess of rent.
306.4 If payment is made by personal check, and there is a balance still due which is attributable to late charges, court costs, or any other such charge in excess of rent, the owner shall provide a receipt stating the nature of the charges and the amount due.
306.5 The provisions of this section shall not be subject to any notice requirement of this subtitle.
Source Link - 6 D.C. Mun. Regs. tit. 14, r. 14-308.3
-
All monies paid to an owner by tenants for security deposits or other payment made as security for performance of the tenant’s obligations 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
- 7 D.C. Mun. Regs. tit. 14, r. 14-311.2
-
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, unless an amount is deducted under procedures set forth in paragraph (2) (14 DCMR §§ 309.1 and 309.2). Any housing provider violating the provisions of this section by failing to pay interest on a security deposit escrow account that is rightfully owed to a tenant in accordance with the requirements of this section, shall be liable to the tenant, as applicable, for the amount of the interest owed, or in the event of bad faith, for treble that amount. For the purposes of this paragraph, the term “bad faith” means any frivolous or unfounded refusal to pay interest on a security deposit, as required by law, that is motivated by a fraudulent, deceptive, misleading, dishonest, or unreasonably self-serving purpose and not by simple negligence, bad judgment, or an honest belief in the course of action taken. Any housing provider who willfully violates the provisions of this section by failing to pay interest on a security deposit escrow account that is rightfully owed to a tenant in accordance with the requirements of this section shall be subject to a civil fine of not more than $ 5000 for each violation.
(1) If the housing provider invests the security deposit in an account with an interest rate that exceeds that of the statement savings rate as required in subparagraph (a)(14) (14 DCMR § 311.1), the housing provider may apply up to 30% of the excess interest for administrative costs or other purposes.
Source Link - 8 D.C. Mun. Regs. tit. 14, r. 14-311
-
The interest in the escrow account described in Section 2908.1(b) (14 DCMR § 308.3) on all money paid by the tenant prior to or during the tenancy as a security deposit, decorating fee, or similar deposit or fee, shall commence on the date the money is actually paid by the tenant, or within thirty (30) days after February 20, 1976, whichever is later, and 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. On those dates, the statement savings rate in the District of Columbia financial institution in which the escrow account is held shall be used. All interest earned shall accrue to the tenant except for that described in paragraph (4)(a-1) or as set forth in paragraph (2) (14 DCMR § 309).
Source Link - 9 D.C. Mun. Regs. tit. 14, r. 14-308.7
-
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. 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
- 10 D.C. Code § 42-3404.02(a)
-
Before an owner of a housing accommodation may sell the housing accommodation or issue a notice to vacate for purposes of demolition or discontinuance of housing use, the owner shall give the tenant an opportunity to purchase the housing accommodation at a price and terms that represent a bona fide offer of sale.
Source Link
