Virginia Security Deposit Law

Maximum Security Deposit Amount

Maximum amount: In the state of Virginia, landlords may only charge up to 2 months of rent as a deposit (§ 55.1-1226). So, if the monthly rent is $1,100, the landlord can charge a maximum of $2,200. Additional factors, such as the lease length, the number of units the landlord owns, and whether the dwelling unit is furnished, do not affect this amount.

Pet deposits: Virginia security deposit laws do not limit the amount that landlords can charge for pet deposits. If a landlord allows pets in the dwelling unit, the pet deposit can be any amount deemed fit, though most landlords charge between $200 and $500 on top of the security deposit.

Note: If the “pet” in question is a service or emotional support animal, the federal Americans with Disabilities Act prohibits landlords across the U.S. from charging a pet deposit and/or additional monthly pet rent fees.

Penalties: The full amount of the security deposit plus the tenant’s legal fees (§ 55.1-1226). If the landlord violates any of the above terms regarding the security deposit, the tenant can sue the landlord to recover the security deposit amount. Additionally, the tenant may sue to recover reasonable attorney’s fees and other court costs.

Handling Damage Deposits

In many states, landlords must adhere to strict rules when determining how to store a tenant’s security deposit. However, this is not the case in Virginia — few laws regulate the storage of security deposits. Below, we’ll look at Virginia’s rules.

Security deposit storage: Though Virginia security deposit laws once required landlords to store security deposits in a separate, interest-bearing account, landlords no longer have any obligation to do so after state regulations changed in 2014. Similarly, landlords in Virginia don’t have to notify their tenants about where and how they’re storing the deposit.

Interest-bearing account: Landlords in Virginia aren’t legally required to store security deposits in an interest-bearing account or pay the tenant interest on it.

Receipt: Landlords in Virginia are not required to give tenants a receipt for their security deposit payment. However, landlords should consider doing so to prevent disputes.

Documentation: Virginia laws for security deposits do not specify any particular documentation requirements for landlords aside from a move-in checklist. State regulations require landlords to provide a written inventory that thoroughly details the condition of the rental property at the start of the tenancy (§ 55.1-1214). Doing so helps landlords prevent disputes with tenants when they end their residency, avoiding stressful and potentially costly conflicts. Without a checklist, tenants may contest the condition of the property and what damage may or may not have been caused to the dwelling unit.

Ownership transfer: If a landlord sells a rental property while tenants still live on-site, the seller and buyer must follow Virginia’s rules for transferring the funds. The deposit, including any accrued interest, must be given to the new owner, who becomes responsible for returning it when the tenancy ends (§ 55.1-1213).

Deductions

What landlords can deduct

Landlords may only deduct from security deposit funds to cover anything other than normal wear and tear on the property. They may also use damage deposits to clean the property, cover costs incurred by unpaid utilities, and handle the correct process related to property abandonment, including disposing of any personal items left behind.

Also, landlords may use the security deposit to cover unpaid rent.

Reasons landlords cannot deduct

Landlords cannot deduct funds from security deposits to correct damages caused by normal wear and tear. Normal wear and tear includes window frames no longer fitting due to shifting foundations, thinning carpet, and/or dirty or loose grouting in tiles.

Landlords must also pay close attention to perceived issues to determine whether such an event counts as damages exceeding normal wear and tear. Should the landlord use the security deposit for an unauthorized purpose, the tenant may pursue legal action.

Return Timeline

Perhaps the most crucial part of the security deposit process is that landlords must adhere to specific requirements stipulated by Virginia rental law to return the security deposit. Landlords should pay close attention to these requirements to ensure their security deposit practices are above board.

Timeframe: Landlords must return security deposits (minus any lawful deductions) within 45 days of the tenant’s move-out (§ 55.1-1226).

Deduction tracking: If the landlord makes deductions from the deposit for any of the valid reasons described above, they must maintain an itemized list of deductions to provide to the tenant when they return the remaining security deposit. This itemized list must contain each damage (or unpaid rent, unpaid utilities, etc.) charge, a reason for each deduction, and copies of any repair estimates or receipts to prove the validity of the charges (§ 55.1-1226).

Itemized deduction notification: Landlords must send the itemized statement of deductions form to the tenant while providing the rest of the security deposit. They must give the tenant the security deposit and an itemized statement, either by mail or personal delivery. Virginia laws for security deposits do not specify whether the tenant must receive the itemized statement and deposit within 45 days or if the statement and deposit simply need to be postmarked by then. As a result, landlords should provide tenants with an itemized statement and the remainder of the security deposit as soon as possible when the tenancy ends. Landlords must be willing to comply with these regulations regarding security deposit refunds. Otherwise, they may be subject to civil penalties (§ 55.1-1226).

Penalties: Should the landlord fail to comply with these regulations, the tenant is entitled to sue the landlord to recover the security deposit, reasonable attorney’s fees, and legal costs (§ 55.1-1226).

Handling Disputes

Move-in/move-out checklist: In the state of Virginia, landlords are required to provide tenants with a move-in checklist at the start of the tenancy, which thoroughly details the property’s condition. However, landlords should also use a move-out checklist to assess any damage the tenant may have caused. When creating the move-in checklist, landlords should include photos and thorough descriptions of the property and its condition.

Tenant challenge: If a tenant challenges the refund of the security deposit, landlords have a few options. First, they should try to resolve the issue with the tenant directly, providing evidence that all Virginia security deposit laws were adhered to throughout the security deposit process. If the tenant persists in challenging the deposit return and seeks to take legal action against their landlord, the landlord must gather all evidence and documentation to support their case. The landlord should also seek civil legal assistance from an attorney familiar with Virginia’s landlord-tenant laws and security deposits. This counselor can provide valuable advice in the event of legal action.