District of Columbia security deposit rules.
The District of Columbia rules for residential security deposits in plain English: how much can be charged, how fast it comes back, whether interest is owed, and what catches operators out.
Last reviewed · Statute: 14 DCMR §§ 308–311 · Not legal advice
How much can be charged
Strict cap of one month of rent. No exemptions for furnished or short-term rentals.
When it has to come back
45 days from move-out for itemised deduction list and refund of remaining balance.
Interest
Interest accrues at not less than the statement savings rate at the escrow institution on January 1 and July 1, computed for each six-month period, and is owed on tenancies of 12 months or more (14 DCMR § 311). Housing providers must post the applicable rate for each six-month period.
Where the money has to sit
Deposits must be held in an interest-bearing escrow account at a federally insured DC institution.
What catches operators out
- The rate resets every January 1 and July 1 to the escrow bank’s statement savings rate. Landlords have to track and list the rate for each six-month period of the tenancy.
- Failing to return the deposit or send written notice of intent to withhold within 45 days (and the itemised statement and balance within 30 days after that) is prima facie evidence the tenant is owed the full deposit plus interest. Bad-faith withholding carries treble damages.
What this looks like with Standby in District of Columbia.
When a resident takes a Standby certificate there is no cash deposit to hold, so the cap, the return deadline and the interest rules above have nothing to attach to. You are covered up to the full deposit and draw on it when you need to.
When a resident pays cash instead, Standby handles that deposit under your lease and District of Columbia law, so your team is not tracking interest and return deadlines by hand.
This page summarises the most common single-family and multifamily residential rule in District of Columbia. Furnished units, senior leases, mobile-home tenancies and short-term rentals can differ, and city ordinances may override the state default. Check the statute before relying on a figure for a specific lease.