DC Deposit Escrow, Interest and Forwarding Address Rules
The District requires a separate interest-bearing account for deposits, pays tenants interest at the statement savings rate and sends every notice to the tenant’s last known address. Here is how each rule works and what to give the landlord.
Where must the deposit be held?
In a separate interest-bearing account in a financial institution located in the District of Columbia, for the sole purpose of holding security deposits, and not mixed with the landlord’s other money; the landlord may use one account for several tenants’ deposits (14 DCMR 308.3, regulations). The landlord must also post a notice in the rental office and lobby saying where deposits are held and the interest rate.
How much interest is owed?
Interest accrues at the statement savings rate, tracked for each six-month period, and is payable to the tenant at the end of a tenancy of 12 months or more, unless an amount is deducted under the withholding procedure (14 DCMR 311). A landlord that earns more than the statement savings rate may keep up to 30 percent of the excess for administrative costs.
What is the cap?
The deposit may not exceed one month’s rent, and it can be charged only once per tenancy (14 DCMR 308.2; D.C. Code 42-3502.17). See the DC security deposit limit calculator.
Why give the landlord a new address?
The withholding notice, the itemized statement and the refund go to the tenant’s last known address, by certified mail or in person. A tenant who moves without telling the landlord risks missing them. Send your new address in writing by a method that gives you proof of the date, and keep a copy.
Is there a right to a move-out inspection?
The deposit regulations we read do not give a pre-move-out inspection right. Ask the landlord in writing for a walk-through, take dated photographs of every room and keep them with the lease to compare with any later claim.
Where do complaints go?
The Office of Administrative Hearings may adjudicate complaints for nonpayment of interest on security deposits, and the Office of the Tenant Advocate can explain tenants’ options. Keep the deposit receipt, the lease and the landlord’s notices together.
A worked example of the cap and the interest
On $1,800 rent the deposit may not exceed $1,800. If the tenancy lasts 24 months, interest at the statement savings rate for each six-month period becomes payable to the tenant at the end of the tenancy, unless an amount is deducted under the withholding procedure. If the landlord keeps more than the statement savings rate in its account, it may keep up to 30 percent of the excess for administrative costs, and the tenant keeps the rest.
What a landlord should post
The regulations require the landlord to post a notice in the rental office and the lobby naming the bank where deposits are held and the interest rate for each six-month period. A tenant who cannot find the notice can ask the landlord in writing where the deposit is held and what rate applies, and keep the answer with the lease.
Why the account matters
The separate account protects the money from the landlord’s other debts and makes the interest easy to calculate. If a landlord cannot show where the deposit is held, that is a fact a tenant can raise in a dispute about the deposit or the interest. The Office of Administrative Hearings can hear complaints about unpaid interest, and the Office of the Tenant Advocate can explain how to bring one.
Where to get help
The Office of the Tenant Advocate can explain how to ask for the deposit, the interest and the statement. Bring the lease, the receipt for the deposit, your forwarding address and every notice you received, with the dates.
Frequently asked questions
Where must a DC landlord keep my deposit?
In a separate interest-bearing account in a District financial institution.
Do I earn interest on a DC security deposit?
Yes, at the statement savings rate, paid at the end of a tenancy of 12 months or more.
Is there a cap on a DC deposit?
Yes. One month’s rent, charged only once.
Why should I give a forwarding address?
So the notice, statement and refund reach you.
Can the landlord keep the extra interest?
It may keep up to 30 percent of the interest above the statement savings rate for administrative costs.
Official sources
A local landlord-tenant attorney can review your situation — many offer a free consultation.
This is general information, not legal advice. It is based on the cited District of Columbia statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed District of Columbia attorney.