Virginia Security Deposit Collections & Holdings

Virginia Security Deposit Collections & Holdings

Last Updated: January 11, 2023 by Ashley Porter

Quick Facts Answer
Maximum / Limit 2 Months’ Rent
Receipt Requirement None
Inventory Requirement Required
Interest Requirement None

To learn about laws on security deposit returns in Virginia, click here.

Maximum Security Deposit Allowed in Virginia

Virginia law limits the maximum security deposit to two months’ rent.

Landlords may allow tenants to purchase damage insurance instead of (or in addition to) a security deposit as long as the cost of the insurance plus the security deposit does not exceed two months’ rent. The tenant must be permitted at any time during the lease to pay a security deposit instead of maintaining the insurance.

Can Landlords Charge an Additional Pet Deposit in Virginia?

In Virginia, landlords can charge a pet deposit, except for service dogs and emotional support animals. However, the total security deposit cannot exceed two months’ rent. Landlords cannot exceed the limit by giving them another name like “pet deposit” or “damage deposit”.

This law does not prevent landlords from adding a monthly pet premium.

How Much Rent Can a Landlord Collect Upfront in Virginia?

In Virginia, there is no limit to the amount of rent that landlords can collect upfront. However, if rent is collected in advance beyond the first month, it must be placed in a federally-insured escrow account within 5 business days of receipt.

Security Deposit Collections in Virginia

When collecting a security deposit, landlords in Virginia must provide the tenant with a written report describing the condition of the rental unit. Landlords must also provide a Statement of Tenant Rights and Responsibilities, which must be signed by the landlord and tenant.

note

These requirements exist regardless of whether or not the landlord collects a security deposit, but failure to do so may prevent the landlord from making a claim for damages.

Do Landlords Have to Provide a Receipt for the Security Deposit in Virginia?

Although some states like Washington require a receipt, landlords are not required to provide a receipt for the security deposit in Virginia.

What Obligations Do Landlords Have to Establish the Condition at Move-in in Virginia?

At the start of every tenancy, landlords in Virginia must provide a written report describing the condition of the rental unit at the start of the lease term. The written report must be provided within five days after occupancy of the rental unit.

The tenant has five days after they receive the report to object in writing. Alternatively, and if presented to the tenant in writing, the landlord can require that:

  • The tenant must prepare the written report and the landlord has five days to object in writing
  • The tenant and landlord prepare the written report together and both sign and receive a copy

Security Deposit Holdings in Virginia

Virginia law does not require landlords to hold security deposits separate from other funds. Some other states mandate how and where security deposits are held, but Virginia does not.

Are Tenants Entitled to Interest on Their Security Deposit in Virginia?

No, Virginia law does not require landlords to provide interest on held security deposits.

How Are Security Deposits Accounted for in Virginia?

Security deposits are not considered taxable income when they are collected.

What Happens to a Security Deposit When the Property is Sold in Virginia?

When a property is sold in Virginia, the seller must transfer the security deposit to the new owner, who must handle it according to the same rules.

If there is a property management company, they must send a written notice to each tenant after the security deposits are transferred.

Sources