Washington, D.C. Security Deposit Law: Limits, Deadlines, and Penalties

The total of all deposits and advance payments may not exceed one month's rent under 14 DCMR § 308.2. For leases beginning on or after October 1, 2025, a landlord may additionally charge a refundable pet security deposit of up to 15% of the monthly rent under the Pets in Housing Amendment Act of 2024.

For residential leases beginning on or after October 1, 2025, pet security deposits are capped at 15% of the monthly rent (refundable, usable only for pet damage beyond normal wear), pet rent is capped at 1% of the first month's rent, and no pet charges may be imposed for service or assistance animals.

Within 45 days after the tenancy ends, the landlord must either return the deposit with all accrued interest or notify the tenant in writing of the intent to withhold. If the landlord gives a withholding notice, an itemized statement of repairs and costs plus any remaining balance is due within 30 days after that notice.

A landlord who withholds must send an itemized statement of the repairs and other uses of the money, with the cost of each, within 30 days of the notice of intent to withhold. Failing either the 45-day or 30-day step forfeits the right to withhold.

A landlord who wrongfully withholds is liable for the amount of the deposit, and for treble (3x) damages if the withholding was in bad faith — defined as a frivolous or unfounded refusal motivated by a fraudulent, deceptive, dishonest, or unreasonably self-serving purpose rather than simple negligence or honest belief.

Interest accrues from the date the tenant pays the deposit, at not less than the statement savings rate prevailing on January 1 and July 1 for each six-month period, and is paid out when the deposit is returned. Tenants are entitled to the interest only if the tenancy lasted at least 12 months.

Deposits must be held in an interest-bearing escrow account at a federally or state-insured financial institution located in the District, used solely for holding tenant deposits. Each year the landlord must post in the lobby and rental office where deposits are held and the interest rate for each six-month period of the prior year.

The Pets in Housing Amendment Act of 2024 (D.C. Law 25-308, effective March 21, 2025) capped pet security deposits at 15% of monthly rent and pet rent at 1% of the first month's rent for leases beginning on or after October 1, 2025; starting October 1, 2026, landlords also may not restrict pets by breed, size, or weight.

DC layers two sets of rules — the D.C. Code and the housing regulations in 14 DCMR — and both apply to nearly all residential rentals, including single-unit landlords. The two-step return process trips up small landlords: the 45-day deadline is only for returning the money or sending the withholding notice; the itemized statement has its own 30-day clock after that. The lease or receipt must state the terms under which the deposit was taken, and the annual posting requirement about where deposits are held applies even to small buildings. Interest is only owed for tenancies of 12 months or longer, but the escrow requirement applies from day one.

• D.C. Code § 42-3502.17
• 14 DCMR §§ 308–311
• D.C. Law 25-308 (Pets in Housing Amendment Act of 2024)