Virginia landlords who understand their state’s security deposit law often prevent disagreements, reduce avoidable costs, and keep turnover efficient. In this guide, you can learn everything you need to know about these regulations, including the maximum amounts landlords can request, storage rules, interest requirements, lawful deductions, return procedures, dispute resolution, and more.
Statutes Regulating Virginia Security Deposits
Virginia outlines its security deposit rules in Section 55.1-1226 of Title 55.1, Chapter 12 of the Virginia Residential Landlord and Tenant Act. These laws govern how landlords can collect, hold, deduct from, and return residential security deposits, as well as the documentation landlords must provide.
Maximum Security Deposit Amounts Under Virginia Law
Virginia limits residential security deposits to no more than 2 months’ rent. This cap applies to every type of residential lease, regardless of rental length, lease terms, or whether the unit comes furnished.
There are no exceptions to the 2-month maximum, and no local jurisdictions enforce different caps that override state law.
Security Deposit Storage Regulations
Virginia requires landlords to keep security deposits in an escrow account held in a federally insured financial institution. Landlords must maintain this account separately from personal funds and use it only for deposit-related transactions.
For instance, a landlord cannot store a tenant’s security deposit in a personal account that mixes private expenses with rental funds.
Security Deposit Interest in Virginia
While Virginia requires landlords to keep security deposits in an escrow account, state law does not require that account to earn interest. Landlords also do not owe tenants interest on the deposit, no matter how long the funds remain in escrow.
Making Security Deposit Deductions
Security deposit deductions help landlords protect the long-term quality of their rental properties. Tenants sometimes leave damage beyond ordinary wear and tear, and landlords rely on deposit funds to make repairs that return the unit to its previous condition and keep it ready for future renters.
When Landlords Can Deduct
Virginia landlords may use a tenant’s security deposit for the following reasons:
- Repairing damage beyond normal wear and tear that affects the unit’s condition
- Replacing fixtures or appliances broken through improper tenant use
- Correcting unauthorized alterations that require professional repair
- Addressing extreme cleaning needs that exceed usual turnover standards
- Paying unpaid rent, late fees, or other valid charges under the lease
When Landlords Can’t Deduct
Virginia landlords may not use a tenant’s security deposit for the following reasons:
- Routine cleaning linked to standard turnover between tenants
- Minor cosmetic issues or deterioration from everyday residential use
- Repairs needed because the landlord failed to maintain essential systems
- Improvements that upgrade the unit beyond its earlier condition
- Wear from normal occupancy, such as faded paint or lightly worn flooring
Necessary Documentation to Accompany Deductions
Virginia landlords must provide tenants with a written, itemized list of all deductions whenever they withhold any portion of a security deposit. State law does not require landlords to attach receipts or invoices, although many choose to include them to support repair costs and reduce the chance of disputes.
What to Do When Deductions are Greater Than the Deposit
Some tenants leave damage or unpaid charges that exceed the security deposit. When this happens, landlords should send a written demand that outlines each remaining charge and requests payment. Virginia law requires landlords to provide the itemized deduction statement within 45 days after the tenancy ends, which helps establish the timeline for collecting additional funds.
Landlords who cannot collect the outstanding balance can file a claim in Virginia small claims court or send the matter to a collections agency to pursue repayment.
Returning Security Deposits to Tenants
Virginia law outlines how landlords must return any remaining security deposit funds after making allowable deductions.
Required Timeline for Return
Virginia requires landlords to return the deposit and an itemized statement within 45 days after the tenant vacates and surrenders possession, or after the lease ends, whichever occurs later. According to state statute, landlords must send the refund and statement to the tenant’s forwarding or last known address.
Method for Return
Virginia law does not require a specific payment method, so that landlords may return the deposit by check, electronic transfer, or any reasonable method.
Penalties for Late Return
Landlords who miss the 45-day deadline for returning the deposit and statement lose the right to withhold any of the funds. If a court determines that the delay was willful, landlords may owe actual damages, along with reasonable attorney fees and court costs, under Virginia law.
Security Deposit Disputes
Tenants who disagree with how a landlord handles their security deposit have full authority to challenge the decision. They often start by requesting clarification, questioning specific deductions, or sharing their own documentation. If they can’t settle the dispute directly, tenants may pursue mediation or file a claim through Virginia small claims court.
As a landlord, prepare for potential disputes by using move-in and move-out checklist forms, keeping organized accounting and bookkeeping, and outlining clear expectations in the lease agreement. Strong documentation, a good understanding of Virginia laws, and close attention to required timelines also help landlords navigate disputes.
Using Condition Reports to Document Damage
Landlords in Virginia who handle security deposits should use condition reports to capture a unit’s condition at each turnover, reduce confusion with tenants, and make deduction decisions more straightforward and less negotiable.
To do so, over 800,000 landlords use TurboTenant’s property management software to create digital reports with photos and videos directly from a smartphone.
Sign up for a free TurboTenant account to collect security deposits, generate condition reports, and securely store tenant records.
FAQs: Virginia Security Deposit Law
Can a landlord deduct painting from a security deposit in Virginia?
A landlord may deduct painting costs only when a tenant leaves damage that goes beyond normal wear and tear. Routine repainting due to age or everyday wear and tear does not qualify, and landlords should document any wall damage that justifies withholding funds.
Are nail holes considered normal wear and tear in Virginia?
Small nail holes from lightweight decorations usually count as normal wear and tear in Virginia. Larger holes, wall anchors, or multiple excessive markings may qualify as tenant-caused damage and can justify a deduction when documented clearly.
Who has to pay for carpet cleaning in Virginia, the landlord or the tenant?
A landlord may charge for carpet cleaning only when a tenant leaves stains, heavy soil, or other conditions that exceed normal wear and tear. Basic turnover cleaning remains the landlord’s responsibility and does not justify withholding any part of the security deposit.
What happens if a landlord doesn’t return a security deposit within 45 days in Virginia?
A landlord who misses the 45-day deadline for returning the deposit and itemized statement loses the right to withhold any funds. If a court finds the delay was willful, the landlord may owe actual damages along with reasonable attorney fees and court costs.
