When renting out a property in Virginia, you must abide by certain rules.
These landlord tenant laws limit how much you can collect, what deductions you can make, and the timeline for return, among other things.
Failure to abide by these rules can result in certain repercussions. You could, for instance, be held liable for damages and reasonable attorney fees.
The following are important highlights of the Virginia security deposit laws.
Security Deposit Limit in Virginia
There is a limit to how much landlords can charge a tenant for a security deposit in Virginia. The maximum amount must not exceed the equivalent of 2 months’ rent.
If the monthly rent amount is, say $1,700, then you cannot require the tenant to pay anything more than $3,400 as a security deposit.
Storage of Security Deposits
Before 2014, Virginia law required landlords to store their tenants’ deposits in accounts that bore interest. The interest would be at a rate below the discount rate of the Federal Reserve.
At that time, landlords would only need to make the payment to tenants who had lived in the unit for at least 13 months. The interest payment was due to the tenant at the end of their lease term.
This is, however, not the case anymore. After 2014, this requirement to keep a tenant’s deposit in an interest-bearing account was removed.
This means that you can keep it in a normal account, interest-bearing account, or even as a surety bond. The choice is entirely yours to make!
Security Deposit Deductions
In Virginia, landlords can make deductions on tenants' security deposits. The reasons for doing so are as follows:
Unpaid Utility Bills: A tenant is responsible for paying any utilities that are due to them before moving out.
If they move out without paying them, you can make appropriate deductions from their deposit to pay them.
Unpaid Rent: A tenant must pay rent for the entire duration of the lease.
Abandoning the unit or terminating the lease without a justified reason won’t absolve a tenant from their rent-paying responsibility.
Excessive Property Damage: Most leases require tenants to return their rented premises in the same condition they found them in, minus normal wear and tear.
If a tenant damages the unit beyond normal wear and tear, you can use part or all of the deposit to pay for the restoration costs.
Usually, to make these deductions, you must wait for the tenant to move out from their rented premises.
Should you need to take out the tenant’s deposit before their lease is over, you must notify them at least 30 days before making the determination. The notice must be in writing.
Security Deposit Records
In Virginia, landlords are required to keep accurate records of tenants’ security deposits. You can use these records to note any deductions you have made on tenants’ deposits over the last 2 years.
These records must be available on demand, especially if required by the tenant or their attorney.
Walk-Through Inspections
Under the Virginia security deposit laws, landlords have a right to perform walk-through inspections. If you decide to exercise this right, then you must keep the following things in mind:
Make a reasonable effort to notify the tenant of their right to be present for the inspection.
Provide the tenant with a notice at least five days before the inspection. After the notification, the tenant can decide whether or not to be present.
If the tenant chooses to be present, they must provide their response in writing.
The day of the inspection must be at least 3 days before the tenant moves out.
After the inspection, you must provide the tenant with an itemized list of deductions for any damages found.
Returning a Tenant’s Security Deposit in Virginia
In Virginia, landlords must return their tenant’s deposit within 45 days after they have moved out, minus any allowable deductions.
If withholding part or all of the tenant’s deposit, you must provide the tenant with an itemized statement. The statement must include the following important details for the sake of clarity:
How much of the security deposit you’re returning.
Deductions you have made to their deposit, including the repair costs.
The method of notice delivery must either be via certified mail or hand delivery. If the damages exceed the security deposit, however, then you must notify the tenant within 45 days.
Change of Property Ownership
If the property’s ownership changes hands during a tenancy, it’ll be the current owner’s responsibility to transfer the deposit, or whatever portion remains, to the tenant.
The incoming landlord would then need to ask the tenant for a security deposit, as well as abide by the relevant rules.
Frequently Asked Questions
1. What Is Considered Normal Wear and Tear in Virginia?
In Virginia, “normal wear and tear” is defined as normal deterioration that occurs as a result of normal use of the property.
Examples include faded paint and flooring, gently worn carpets, and loose door handles.
Damage, on the other hand, is property destruction that results from abuse, misuse, negligence, or carelessness by the tenant.
Examples include missing fixtures, holes in the wall, or broken tiles or windows.
2. Can a Tenant in Virginia Use the Deposit as Last Month’s Rent?
No, this is against the state’s security deposit rules. As a landlord, you can include this as part of the lease agreement for clarity’s sake.
3. What Happens if a Landlord Fails to Follow These Rules?
If you fail to follow any of these rules, the repercussions could be severe.
You may lose the right to withhold any portion of the deposit, and be made to pay the tenant reasonable court and attorney fees.
Conclusion
As a landlord in Virginia, observing these rules is key to becoming successful. Keeping up can become arduous, especially if you’re an out-of-state investor or have a full-time job.
Fortunately for you, Abrams Realty can help. We provide the best property management services in Virginia Beach.
Our focus is on residential, commercial, and multi-family properties. Get in touch today 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.
