Overview
Virginia security deposit laws clearly define how landlords must manage tenant funds. These rules aim to protect tenants from unfair deductions while providing landlords a means to cover valid expenses.
Under Virginia Code § 55.1-1226, landlords are required to follow specific procedures when handling and returning security deposits. Non-compliance may result in forfeiture of deposit rights and potential legal penalties.
This guide covers:
How much landlords can charge
Where deposits must be stored
Rules for returning security deposits
Penalties for non-compliance
Related Statute: Va. Code § 55.1-1226
1. Security Deposit Limits & Storage Requirements
Maximum deposit: Virginia landlords may charge up to two months’ rent as a security deposit.
Storage requirements: There is no legal requirement for landlords to store deposits in a separate or interest-bearing account, though funds must be returned in accordance with the statute.
Tenant notification: Landlords must provide written notice within 30 days of receiving the deposit, disclosing the name and address of the financial institution where the deposit is held, upon written request from the tenant.
Law Reference: Va. Code § 55.1-1226(A)
2. Security Deposit Returns & Allowable Deductions
Return deadline: Landlords must return the security deposit, along with an itemized list of deductions, within 45 days of the termination of tenancy and delivery of possession.
Permissible deductions: Deductions may include unpaid rent, damage beyond normal wear and tear, late fees, and any other charges authorized in the lease.
What landlords cannot deduct: Landlords may not charge for normal wear and tear, such as faded paint or minor scuffs.
Itemized statement required: A written list of all deductions must be provided with the returned balance of the deposit.
Law Reference: Va. Code § 55.1-1226(A)-(D)
3. Interest Payments & Documentation Requirements
Interest payments: Interest is only required to be paid on deposits if the landlord owns more than 10 dwelling units (or is managing on behalf of someone who does), and if the deposit is held for more than 13 months.
Move-in condition report: Landlords are required to provide a written report of the unit’s condition at move-in. Tenants may request a walk-through within five days of occupancy to verify conditions.
Tenant review period: Tenants may also be present for the move-out inspection and may request a copy of the final inspection report.
Failure to provide documentation: Landlords who fail to comply with return deadlines or inspection obligations may forfeit the right to withhold the deposit.
Law Reference: Va. Code § 55.1-1226(B), (C), (D)
4. Penalties for Mishandling Security Deposits
Virginia imposes penalties for landlords who fail to comply with deposit return rules.
Failure to return the deposit within 45 days or failure to provide a proper itemized statement may entitle the tenant to recover the full deposit and additional damages.
Failure to allow tenant inspections or document property condition may limit a landlord’s ability to justify deductions.
Law Reference: Va. Code § 55.1-1226(E)
Key Takeaways
Security deposits are capped at two months’ rent in Virginia.
Deposits must be returned within 45 days, with a full itemized list of any deductions.
Interest is required only under certain conditions, such as longer deposit periods and larger property portfolios.
Tenants have the right to request condition reports and attend inspections.
Non-compliance may lead to legal liability, including return of the deposit and additional damages.
By understanding and following Virginia security deposit laws, landlords can avoid legal risk, and tenants can ensure fair treatment and timely return of funds.
Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. Readers should not act or refrain from acting based on any information included in this post without seeking legal counsel or other professional guidance specific to their situation. The information is provided “as is” without any representations or warranties of any kind, express or implied, including but not limited to the accuracy, completeness, or reliability of the content. Laws and regulations may change and vary by jurisdiction.
