DC limits residential security deposits to one month's rent, requires interest-bearing escrow, and obligates landlords to itemize deductions and return the balance within 45 days of move-out.
Under 14 DCMR Chapter 3 and DC Code 42-3502.17, residential landlords may collect at most one month's rent as a security deposit. Funds must be held in an interest-bearing escrow account at a federally insured financial institution, with interest credited to the tenant at prevailing passbook rates and paid out at move-out or annually on request. Within 45 days of vacancy, the landlord must either return the full deposit plus interest or send an itemized statement of deductions for damage beyond ordinary wear and tear, with refund of any unused balance. Failure to comply triggers treble-damages exposure under DC consumer protection law.
Landlords who collect excess deposits, skip escrow, miss the 45-day deadline, or deduct for ordinary wear face refund orders, interest forfeiture, and treble damages plus attorney fees.
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