Key Takeaways
- Security Deposit Laws and Limits: Virginia security deposit law allows landlords to charge up to two months' rent for a security deposit. Tenants can also purchase damage insurance instead, as long as the total doesn't exceed twice the monthly rent.
- Pet Deposits and Fees: Virginia landlords may charge a pet deposit or pet rent, but the combined total of the security and pet deposits cannot exceed twice the rent. However, disabled tenants with emotional support animals are exempt from paying pet deposits.
- Move-In Inspections Required: Virginia law mandates that landlords and property owners provide tenants with a move-in inspection report, detailing the dwelling unit's condition. Failure to do so can result in the forfeiture of any deposit claims.
- Deductions from Security Deposits: Virginia landlords may use a tenant's deposit to cover unpaid rent, fees, damage beyond normal wear and tear, or costs from an early lease termination.
State law requires that landlords and property owners charging security deposits abide by certain rules. In Virginia, these security deposit laws dictate things like:
The maximum security deposit amount you can charge a tenant as a part of their rental agreement.
What deductions you can make from the tenant’s deposit.
When to return the tenant's deposit, or whatever portion remains, after the tenant vacates the premises.
Failure to abide by these rules can cause you serious repercussions. Unlawful withholding, for instance, could make you forfeit your right to make any deductions. A court could also award the tenant up to 2X the wrongfully withheld amount, plus court and reasonable attorney fees.
To avoid potential issues, familiarize yourself with the state’s security deposit laws. This way, you’ll know what you can and cannot do regarding tenants’ security deposits in Virginia. Keep on reading this blog by KRS Lynchburg to learn more about Virginia security deposit laws.
A Guide to Virginia Security Deposit Laws
What Is the Maximum Security Deposit Amount a Landlord Can Charge in Virginia?
Virginia law caps the security deposit amount at the equivalent of two months’ rent.
If the rental agreement charges, say, $1,500, then the security deposit you charge the tenant must not exceed $3,000.
Another option, instead of (or in addition to) a security deposit, is to allow the tenant to purchase damage insurance. Virginia law states that the cost of the damage insurance and the security deposit must not exceed 2X the monthly rent of the dwelling unit.
You must also allow the tenant, upon request, to fulfill security deposit costs rather than maintain the insurance costs at any point during the lease or rental agreement. If the property owners or landlord fails to do so, there may be legal consequences.
Can Landlords in Virginia Charge Tenants an Additional Pet Deposit?
Sure, you can do this! You can charge a tenant with pets an additional pet security deposit to cover potential damage their furry companion can cause to the rental unit. Also, the law doesn’t prevent Virginia landlords from asking tenants for a pet rent.
If you consider charging tenants a pet deposit or a pet rent, you must keep two things in mind. One, that the total security deposit (move-in deposit and pet deposit) must not exceed 2X the rent.
Whatever label you decide to use to ask for money, the total amount must abide by the state’s limit. Whether that is a “pet deposit” or “damage deposit”.
Two, you must exempt disabled tenants from paying for their emotional support animals. Both the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) classify disability as a protected class.
After all, assistance animals, including companion animals and service animals aren’t pets. They are working animals!
Are Move-in Inspection Reports Required in Virginia?
Yes! In Virginia, landlords are required to provide tenants with a written report describing the dwelling unit's move-in condition. If you fail to do so, you may forfeit the right to claim any portion of the tenant’s deposit after they move out.
Additionally, you must also provide the Virginia tenant with a written notice or statement of their rights and responsibilities. Some of those rights include, a right to:
A written lease and rental agreement.
Be provided with certain disclosures before moving in, such as the contact info of the owner or property manager.
Be present during the move-out inspection.
Live in a fit and habitable rental property as per the Uniform Statewide Building Code.
A just eviction process.
As for the list of responsibilities listed under the Virginia Statement of Tenant Rights and Responsibilities, they include:
Paying rent on time as determined by the rental agreement.
Allowing the landlord access to the rental unit at reasonable times and for practical purposes.
Maintaining the rental unit to habitable standards.
Having and paying for renter’s insurance if required under the lease or rental agreement.
Paying late fees if the rental agreement requires.
Are Landlords in Virginia Required to Store Their Tenants’ Security Deposits in an Interest-Bearing Account?
Some states' security deposit laws require landlords to store their tenants’ security deposits in a particular manner, including storing them in interest-bearing accounts or even posting them as surety bonds.
Virginia's security deposit laws aren't like those states. Virginia landlords can hold tenants’ security deposits in whatever manner they feel like. Yours would be to just make sure those funds are available to the tenant within the required timeframe after they move out. Virginia landlords must also provide written notice to the tenant of any deductions made. If the Virginia residential landlord fails to return the deposit, the tenant can sue to regain the deposit, any damages, unpaid utility bills, and reasonable attorney fees.
It's important to store Virginia security deposit records, security deposit receipts, lease agreements and other relevant documents to protect yourself in a legal situation. The landlord must provide these Virginia security deposit records and security deposit receipts, and itemized lists of deductions upon request to any concerned parties during normal business hours.
What Happens to a Tenant’s Security Deposit After a Rental Property Is Sold in Virginia?
Once you sell an occupied rental property in Virginia, you must transfer the security deposit, or whatever portion remains, to the incoming landlord. The new property owner's responsibility will then be handling the tenant's security deposit records as per Virginia code.
What Deductions Can a Landlord Make From a Tenant’s Security Deposit?
Virginia landlords and rental property owners can make certain allowable deductions from a tenant’s security deposit after they move out, letting you deduct money to supplement lost income or damages. In Virginia, the following are the allowable deductions:
Unpaid Rent: If a tenant moves out with an unpaid rent balance, you can deduct it from their security deposit to cover the lost income.
Unpaid Fees: If the tenant moves out without paying due fees, such as late rent fees or unpaid utility bills, you can deduct them from their deposit.
Early Lease Termination: If a tenant terminates their lease early and without a legal justification, you could lose out on rent payments. Under Virginia law, you could use part or all of their deposit as compensation.
Damage Exceeding Normal Wear and Tear: These are damages that can emerge if the tenant fails to care for the property, from negligence, carelessness, abuse, or misuse, a breach of the rental agreement.
The following are examples of what commonly constitutes excessive property damage and normal wear and tear.
Excessive Rental Property Damage
Marks, graffiti, or unauthorized paint colors.
Holes in the wall.
Chipped or gouged wood floors.
A missing hinge.
Unapproved wallpaper.
A torn curtain or blind.
Worn appliances due to long-term use.
Normal Wear and Tear
Faded paint.
A few nail holes in the wall.
A missing floor tile.
A squeaky door due to a sticky hinge.
A faded wallpaper.
A faded blind or curtain due to sunlight exposure.
Non-functioning appliances due to misuse.
When Must Virginia Landlords Return Their Tenants’ Security Deposits in Virginia?
You have up to 45 days after the tenant moves out to fulfill a security deposit refund, along with an itemized list of necessary deductions.
Bottom Line
This blog outlines the important basics of the Virginia security deposit limits and laws that every landlord must have on their fingertips.
For expert help in staying legally compliant or overall management of your Lynchburg rental property, look no further than KRS Lynchburg. You can count on us for optimal return on investment and peace of mind. Get in touch to learn more!
Disclaimer: Please note that the information provided in this blog is intended for general guidance and should not be considered as a replacement for professional legal advice. It is important to be aware that laws pertaining to property management may change, rendering this information outdated by the time you read it.