Virginia security deposit law

You may not demand or receive a security deposit, however it is labeled, of more than two months' periodic rent. A refundable pet deposit is a security deposit and counts toward the cap.

Va. Code § 55.1-1226(A) Va. Code § 55.1-1200

• A lease may not make the tenant pay a security deposit, damage insurance premiums and renter's insurance premiums before the tenancy starts that together exceed two months' periodic rent. Va. Code § 55.1-1208(A)(7)
• You may require damage insurance or renter's insurance and charge the premiums; they count as rent, not as a deposit, and you must tell the tenant in writing of the right to buy a separate policy. Va. Code § 55.1-1206(A), (B)
• Money paid toward a security deposit is treated as an application deposit until the lease's commencement date. Va. Code § 55.1-1200
• You may let a tenant buy damage insurance instead of paying a deposit. The insurer must be licensed or approved by the State Corporation Commission, the coverage must last the whole term and be at least the deposit you require per claim, and the insurer must tell you within 10 days if the policy lapses. Va. Code § 55.1-1226(I)
• A tenant who chose damage insurance may switch to paying the full deposit at any time without your consent, and you may not change the lease terms because of it. Va. Code § 55.1-1226(J)
• If the tenant has an assignee or sublessee, you may hold a security deposit from only one party. Va. Code § 55.1-1226(H)

Within 45 days after the tenancy ends or the tenant vacates, whichever is later, give the tenant a written notice itemizing the deposit and every deduction, together with any amount due. You may deduct only accrued rent and late charges the lease specifies, damage from the tenant's breach of the tenant duties less reasonable wear and tear, other charges the lease provides for, and actual damages for breach of the lease.

Va. Code § 55.1-1226(A)

• When you ask the tenant to vacate, or within five days after you receive the tenant's notice of intent to vacate, tell the tenant in writing of the right to be present at the move-out inspection. If the tenant asks in writing to attend, the inspection must be made within 72 hours of delivery of possession. Va. Code § 55.1-1226(G)
• If damage exceeds the deposit and needs a third-party contractor, say so in writing within the 45 days and you get 15 more days to itemize the damage and repair cost. Va. Code § 55.1-1226(E)
• Deductions you make during the tenancy must be itemized to the tenant in writing within 30 days of deciding on them, except deductions made less than 30 days before the lease ends. Va. Code § 55.1-1226(E)
• You may hold back a reasonable part of the deposit for the tenant's unpaid water, sewer or other utility bill owed to a third-party provider, but only if you told the tenant of this right in the termination notice, in a notice confirming the move-out date, or in a separate notice at least 15 days before the accounting. After the bill is paid, confirm it in writing and pay any balance within 10 days. Va. Code § 55.1-1226(C)
• With more than one tenant, unless each agrees otherwise in writing, refund with one check payable to all of them, sent to a forwarding address one of them gives. Without a forwarding address you may hold the deposit in escrow and, one year after the 45 days end, send it to the State Treasurer as unclaimed property. Va. Code § 55.1-1226(B)
• If you willfully fail to comply, the court orders the deposit returned with actual damages and reasonable attorney fees, unless the tenant owes rent, in which case the deposit is credited against the rent. Va. Code § 55.1-1226(E)
• Keep itemized records of deposit deductions for two years and let the tenant or the tenant's agent inspect them during normal business hours. Va. Code § 55.1-1226(F)
• Whoever holds the landlord's interest when the tenancy ends must return any deposit owed, whether or not it was transferred, and a selling owner must transfer deposits to the buyer at the sale. Va. Code § 55.1-1226(E) Va. Code § 55.1-1213
• You may do the accounting early and charge an administrative fee for it only if the lease provides for it and the tenant asks in a separate written document. Va. Code § 55.1-1226(D)

Chapter 12 does not require you to pay interest on a security deposit or to keep it in a separate account. Prepaid rent is different: put it in an escrow account at a federally insured depository by the end of the fifth business day after you receive it, and leave it there until it comes due.

Va. Code §§ 55.1-1200 to 55.1-1262 Va. Code § 55.1-1205

• Prepaid rent may leave the escrow account without the tenant's written consent only when you have become entitled to it. Va. Code § 55.1-1205
• If you or your managing agent is a real estate licensee, following the multiple-tenant and forwarding-address rules for the deposit counts as compliance with the licensee escrow statute and the Real Estate Board's matching regulations, which sit outside the landlord and tenant law and were not read for this page. Va. Code § 55.1-1226(B)

Within five days after the tenant moves in, give the tenant a written report itemizing damage that exists at move-in. The report is treated as correct unless the tenant objects in writing within five days after receiving it. This applies to every tenancy, whether or not you take a deposit.

Va. Code § 55.1-1214(A)

• You may adopt a written policy letting the tenant prepare the report (it is then correct unless you object in writing within five days) or letting you and the tenant prepare it together, signed by both. Va. Code § 55.1-1214(B)
• The report must say whether there is any visible evidence of mold in readily accessible interior areas. If it says there is, the tenant may end the tenancy; if the tenant chooses to stay, remediate within five business days of that decision, reinspect, and give a new report. Va. Code § 55.1-1215
• Damage listed on the report does not by itself require repair, unless the mold rule or your duty to keep the home fit requires it. Va. Code § 55.1-1214(C)