Virginia Security Deposit Laws: Rental Rules Explained

This article explains Virginia's security deposit laws, covering key aspects such as deposit limits, return procedures, and allowable deductions. You'll learn about your rights and responsibilities as a tenant or landlord, including how to handle disputes and verify compliance with state regulations.

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Ever wonder what really happens to that security deposit you hand over when renting a home in Virginia? You're not alone. Since renters make up about 33% of Virginia's population, security deposit laws play a key role in balancing the rights of tenants and landlords.

The Virginia Residential Landlord and Tenant Act (VRLTA) outlines the rules for security deposits. This article explains Virginia's security deposit laws, covering topics from deposit limits to return procedures. You'll learn about legal limits, allowable deductions, and steps for resolving disputes.

Explore your rights and responsibilities regarding security deposits under Virginia law to prepare for rental agreements and potential issues.

Virginia security deposit limit

Virginia security deposit law limits the total amount a landlord can charge and specifies when the landlord must return it.

The maximum amount is equivalent to two months' rent. This law applies to all lease lengths, such as month-to-month, one-year, or other periodic tenancies. It's also the same for all residential rentals, with no exceptions based on property value or other factors.

Landlords must return this deposit within 45 days after the tenant moves out.

Other fees

Besides a security deposit, other fees that Virginia property owners can charge include the following:

• Application fee: This is a charge to cover the cost of processing a rental application, including background and credit checks.
• Pet deposit: Property owners may charge an additional deposit for tenants with pets to cover potential damages caused by the animal.
• Late rent fee: If the tenant doesn't pay rent by the due date, the landlord can charge a late fee as specified in the lease agreement and local regulations.
• Early lease termination fee: A fee charged when a tenant breaks their lease before the agreed-upon end date. It helps compensate the landlord for potential lost rent and the costs of finding a new tenant.
• Maintenance or repair fees: Charges for repairs or maintenance that are the tenant's responsibility, as outlined in the lease. These can include repairs for damages caused by the tenant's neglect or misuse.
• Cleaning fee: This is a charge for professional cleaning services after the tenant moves out. Some landlords include this in the lease, while others may deduct it from the security deposit if the unit is left excessively dirty.
• Parking fee: An additional charge for designated parking spaces, especially in urban areas or properties with limited parking. This fee may be monthly or a one-time charge.
• Key replacement fee: If a tenant loses their keys or access cards, this covers the cost of replacement and, in some cases, changing locks for security reasons.

Interest on security deposits

Virginia landlord-tenant law does not require landlords to pay interest on a tenant's security deposit or store it in a separate bank account.

While Virginia's security deposit law doesn't require a separate account, keeping the security deposit separate from daily operational expenses can help with property operations. This approach simplifies accounting, and it secures the tenant's deposit for future refund.

Tenant's security deposit deductions

The purpose of a security deposit is to help protect landlords from financial losses due to tenant damages or unpaid rent. While tenants hope to receive their full deposit back, there are situations wherein landlords may need to make deductions. Here are the rules governing such deductions in Virginia.

During tenancy

In certain situations, landlords may need to deduct from the security deposit during tenancy. These situations can include repairing property damage, paying overdue utility bills, or covering costs from lease violations. When making these deductions, Virginia law requires landlords to follow these procedures:

• General deductions: Provide advance written notice 30 days before the deduction.
• Utility deductions: Provide at least 15 days' notice before using security deposits and confirm payments within 10 days.

End of tenancy

When a tenant moves out, landlords may need to use the security deposit to cover various costs. Here are some of the allowed deductions:

• Unpaid rent: If a tenant fails to pay rent, the landlord usually begins the eviction process. The landlord can withhold the unpaid rent from the security deposit.
• Various fees: The rental agreement might include charges such as late fees, cleaning fees, parking fees, or pet fees. If the tenant owes these charges, the landlord can deduct them from the security deposit.
• Damages to the property: Landlords can deduct costs from the security deposit for damage exceeding normal wear and tear. A hole punched in a wall qualifies for deduction, while scuff marks on the floor from regular foot traffic do not.
• Breach of agreement: If there are any costs associated with a breach of the rental agreement, like early termination fees, subletting without permission, or violating pet policies, the landlord can deduct these costs.

Documentation requirements for security deposits

Paperwork matters when it comes to security deposits. To stay compliant with Virginia law and maintain transparency, landlords must follow to these documentation rules when making deductions:

• Security deposit disposition letter: Virginia landlord-tenant laws require the landlord to provide written notice of any deductions within 45 days after the tenant vacates the property. If the landlord needs more time to complete repairs on the rental property, they can take 15 additional days to provide the list of deductions and repair costs.
• Tenant's security deposit records: The Virginia security deposit law also requires landlords to keep records of all deductions made from security deposits for at least 2 years. They must also make these available for tenants or their representatives to inspect.

Rental property walk-through inspection

The law doesn't require Virginia landlords to conduct move-in inspections of the dwelling unit, but it does require landlords to conduct a move-out inspection. Here are the rules for this:

• Notice: Landlords should provide written notice to tenants about the inspection at least five days after receiving the tenant's notice of intent to vacate. Virginia landlords must also let tenants know of their right to be present during the inspection.
• Timing: The walk-through inspection of the dwelling unit needs to happen within 72 hours of the tenant's move-out date.

Virginia tenant responsibilities

Tenants also have responsibilities per the rental agreement that can affect the return of their security deposit. These include the following:

• Maintaining the dwelling unit: Tenants are responsible for keeping the rental unit in good condition and preventing damages beyond normal wear and tear.
• Reporting damages: Tenants must notify the landlord in writing about any damages or repairs to avoid deductions from the security deposit.
• Providing notice: Your lease specifies how and when to notify your landlord before moving out. Check it for the required notice period and proper method of communication.
• Returning keys: Return all keys and access devices to the managing agent at the end of the tenancy.
• Providing a forwarding address: Tenants should provide a forwarding address to the landlord to make sure you receive your security deposit refund on time.
• Cleaning the dwelling unit: Clean the property thoroughly when you move out. Check your rental agreement for potential cleaning fee deductions if you leave the unit dirty.

What if the landlord fails to return the security deposit?

Virginia landlords must return their tenants’ security deposits within 45 days after the tenant moves out. If the landlord fails to return the deposit or provide an itemized list of deductions within this timeframe, the tenant may be able to recover the full deposit along with any reasonable attorney fees. In such situations, here are the steps the tenant should take:

• Request an itemized list: Tenants should first request an itemized list of any deductions from the deposit. The landlord must provide this along with any returned portion of the deposit.
• Send a written demand: If the landlord does not comply, the tenant should send a written demand for the return of the deposit, specifying the amount owed.
• Seek mediation: If direct communication fails, tenants can seek mediation services to resolve the dispute.
• File in small claims court: As a last resort, tenants can file a claim in the Small Claims Court of Virginia for the amount wrongfully withheld, plus actual damages and reasonable attorney's fees.

These steps can be effective in recovering your security deposit, but preparation is also key. As one tenant who successfully won back their security deposit after small claims court shared on the r/nova Reddit forum, "I learned a lot from reading landlord-tenant law, which has served me well on more than one occasion. Get everything in writing, or immediately document everything if you can't."

Managing rental properties in Virginia

Property owners can stay in compliance with Virginia landlord-tenant laws by using property management software like Azibo. This integrated platform helps protect you with the following tools:

• Tenant screening: You can conduct thorough background checks and credit reports on potential tenants to choose the most reliable renters for your property. This helps reduce the risk of non-payment, property damage, and evictions.
• Lease agreement: Create lease agreements that comply with Virginia landlord-tenant laws and protect you from potential legal disputes and financial losses.
• Rent collection:Reduce chances of late or missed rent by using Azibo's online rent collection service.
• Maintenance and messaging: Make it easy for tenants to report maintenance issues so that you can quickly assess the situation and track the status.
• Document storage: Keep records of inspection reports, security deposit receipts, disposition letters, and any other key documents for your property.

Security deposit return Virginia

Virginia's security deposit laws establish clear guidelines for both tenants and landlords. The law caps deposits at two months' rent and requires landlords to return them within 45 days after a tenant moves out. Thorough documentation and inspections help prevent disagreements, while tenants maintain the right to challenge unjust deductions.

Familiarity with these regulations benefits all parties involved in the rental process. Tenants can better protect their deposits, while landlords can comply with legal requirements and avoid potential issues.

These laws promote fairness and transparency in Virginia's rental market. A bit of legal know-how makes renting smoother for everyone involved.

Virginia security deposit laws: FAQs

What happens if a security deposit is not returned within 45 days in Virginia?

If a landlord in Virginia does not return the tenant's deposit within 45 days, the tenant can sue to recover the deposit, actual damages, and reasonable attorney's fees.

What is normal wear and tear in Virginia?

In Virginia, "normal wear and tear" refers to the deterioration that occurs from the regular, everyday use of a rental property, such as minor carpet wear, small nail holes, or faded paint. It does not include damage caused by negligence, accidents, or misuse by the tenant.

How long after you move out can a landlord charge you for damages in Virginia?

Virginia landlords can charge for damages up to 45 days after the tenant moves out. This includes providing an itemized statement of any deductions made from the deposit.​

Important Note: This post is for informational and educational purposes only. It should not be taken as legal, accounting, or tax advice, nor should it be used as a substitute for such services. Always consult your own legal, accounting, or tax counsel before taking any action based on this information.

Nichole co-founded Gateway Private Equity Group, with a history of investments in single-family and multi-family properties, and now a specialization in hotel real estate investments. She is also the creator of NicsGuide.com, a blog dedicated to real estate investing.