| 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.
Some cities and counties may have regulations which are more restrictive than those presented here. Always check local laws.
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 this limit by asking for money under another label like “pet deposit” or “damage deposit.”
This law does not prevent landlords from adding a monthly pet premium (“pet rent”) in exchange for the right to keep an animal on the property.
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.
The law requires these disclosures regardless of whether 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
- 1 Va. Code § 55.1-1226(A)
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No landlord may demand or receive a security deposit, however denominated, in an amount or value in excess of two months’ periodic rent. Upon termination of the tenancy or the date the tenant vacates the dwelling unit, whichever occurs last, such security deposit, whether it is property or money held by the landlord as security as provided in this section, may be applied by the landlord solely to
(i) the payment of accrued rent, including the reasonable charges for late payment of rent specified in the rental agreement;
(ii) the payment of the amount of damages that the landlord has suffered by reason of the tenant’s noncompliance with § 55.1-1227, less reasonable wear and tear;
(iii) other damages or charges as provided in the rental agreement; or
(iv) actual damages for breach of the rental agreement pursuant to § 55.1-1251.
The security deposit and any deductions, damages, and charges shall be itemized by the landlord in a written notice given to the tenant, together with any amount due to the tenant, within 45 days after the termination date of the tenancy or the date the tenant vacates the dwelling unit, whichever occurs last. As of the date of the termination of the tenancy or the date the tenant vacates the dwelling unit, whichever occurs last, the tenant shall be required to deliver possession of the dwelling unit to the landlord. If the termination date is prior to the expiration of the rental agreement or any renewal thereof, or the tenant has not given proper notice of termination of the rental agreement, the tenant shall be liable for actual damages pursuant to § 55.1-1251, in which case, the landlord shall give written notice of security deposit disposition within the 45-day period but may retain any security balance to apply against any financial obligations of the tenant to the landlord pursuant to this chapter or the rental agreement. If the tenant fails to vacate the dwelling unit as of the termination of the tenancy, the landlord may file an unlawful detainer action pursuant to § 8.01-126.
Source Link - 2 Va. Code § 55.1-1226(I) & (J)
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I. The landlord may permit a tenant to provide damage insurance coverage in lieu of the payment of a security deposit. Such damage insurance in lieu of a security deposit shall conform to the following criteria:
1. The provider of damage insurance is licensed or approved by the Virginia State Corporation Commission;
2. The coverage is effective upon the payment of the first premium and remains effective for the entire lease term;
3. The coverage provided per claim is no less than the amount the landlord requires for security deposits;
4. The provider of damage insurance agrees to approve or deny payment of a claim; and
5. The provider of damage insurance shall notify the landlord within 10 days if the damage policy lapses or is canceled.
J. A tenant who initially opts to provide damage insurance in lieu of a security deposit may, at any time without consent of the landlord, opt to pay the full security deposit to the landlord in lieu of maintaining a damage insurance policy. The landlord shall not alter the terms of the lease in the event a tenant opts to pay the full amount of the security deposit pursuant to this subsection.
Source Link - 3 Va. Code § 55.1-1206(A)
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A landlord may require as a condition of tenancy that a tenant have damage insurance and pay for the cost of premiums. As provided in § 55.1-1200, such payments shall not be deemed a security deposit, but shall be rent. However, as provided in § 55.1-1208, the landlord shall not require a tenant to pay both a security deposit and the cost of damage insurance premiums if the total amount of any security deposit and damage insurance premiums exceeds the amount of two months’ periodic rent. The landlord shall notify a tenant in writing that the tenant has the right to obtain a separate policy from the landlord’s policy for damage insurance. If a tenant elects to obtain a separate policy, the tenant shall submit to the landlord written proof of such coverage and shall maintain such coverage at all times during the term of the rental agreement. Where a landlord obtains damage insurance coverage on behalf of a tenant, the insurance policy shall provide coverage for the tenant as an insured. The landlord shall recover from the tenant the actual costs of such insurance coverage and may recover administrative or other fees associated with administration of a damage insurance policy, including a tenant opting out of the insurance coverage provided by the landlord pursuant to this subsection. If a landlord obtains damage insurance for his tenants, the landlord shall provide to each tenant, prior to execution of the rental agreement, a summary of the insurance policy or certificate evidencing the coverage being provided and upon request of the tenant make available a copy of the insurance policy. For a tenant that opts out of the landlord’s damage insurance program, the landlord shall allow such tenant to either provide their own damage insurance policy or pay the full security deposit.
Source Link - 4 Va. Code § 55.1-1200
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“Security deposit” means any refundable deposit of money that is furnished by a tenant to a landlord to secure the performance of the terms and conditions of a rental agreement, as a security for damages to the leased premises, or as a pet deposit. However, such money shall be deemed an application deposit until the commencement date of the rental agreement. “Security deposit” does not include a damage insurance policy or renter’s insurance policy, as those terms are defined in § 55.1-1206, purchased by a landlord to provide coverage for a tenant.
Source Link - 5 Va. Code § 55.1-1205
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A landlord and a tenant may agree in a rental agreement that the tenant pay prepaid rent. If a landlord receives prepaid rent, it shall be placed in an escrow account in a federally insured depository authorized to do business in Virginia by the end of the fifth business day following receipt and shall remain in the account until such time as the prepaid rent becomes due. Unless the landlord has otherwise become entitled to receive any portion of the prepaid rent, it shall not be removed from the escrow account required by this section without the written consent of the tenant.
Source Link - 6 Va. Code § 55.1-1214
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A. The landlord shall, within five days after occupancy of a dwelling unit, submit a written report to the tenant itemizing damages to the dwelling unit existing at the time of occupancy, and the report shall be deemed correct unless the tenant objects to it in writing within five days after receipt of the report.
B. The landlord may adopt a written policy allowing the tenant to prepare the written report of the move-in inspection, in which case the tenant shall submit a copy to the landlord, and the report shall be deemed correct unless the landlord objects thereto in writing within five days after receipt of the report. Such written policy adopted by the landlord may also provide for the landlord and the tenant to prepare the written report of the move-in inspection jointly, in which case both the landlord and the tenant shall sign the written report and receive a copy of the report, at which time the inspection report shall be deemed correct.
C. If any damages are reflected on the written report, a landlord is not required to make repairs to address such damages unless required to do so under § 55.1-1215 or 55.1-1220.
Source Link - 7 Va. Code § 55.1-1204(B)
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Source LinkA landlord shall offer a prospective tenant a written rental agreement containing the terms governing the rental of the dwelling unit and setting forth the terms and conditions of the landlord-tenant relationship and shall provide with it the statement of tenant rights and responsibilities developed by the Department of Housing and Community Development and posted on its website pursuant to § 36-139. The parties to a written rental agreement shall sign the form developed by the Department of Housing and Community Development and posted on its website pursuant to § 36-139 acknowledging that the tenant has received from the landlord the statement of tenant rights and responsibilities. The written rental agreement shall be effective upon the date signed by the parties.
If a tenant fails to sign the form available pursuant to this subsection, the landlord shall record the date or dates on which he provided the form to the tenant and the fact that the tenant failed to sign such form. Subsequent to the effective date of the tenancy, a landlord may, but shall not be required to, provide a tenant with and allow such tenant an opportunity to sign the form described pursuant to this subsection. The form shall be current as of the date of delivery.
- 8 Va. Code § 55.1-1213
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The current owner of rental property shall transfer any security deposits and any accrued interest on the deposits in his possession to the new owner at the time of the transfer of the rental property. If the current owner has entered into a written property management agreement with a managing agent in accordance with the provisions of subsection E of § 54.1-2135, the current owner shall give written notice to the managing agent requesting payment of such security deposits to the current owner prior to settlement with the new owner. Upon receipt of the written notice, the managing agent shall transfer the security deposits to the current owner and provide written notice to each tenant that his security deposit has been transferred to the new owner in accordance with this section.
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