Virginia Security Deposit Rules: A Landlord’s Guide

Security deposits cause more landlord-tenant disputes than almost anything else. Virginia sets clear rules in the Virginia Residential Landlord and Tenant Act (Va. Code § 55.1-1226). Here is what Northern Virginia owners need to know.

How much can you collect?

A Virginia landlord can’t collect a security deposit of more than two months’ rent. For a home renting at $2,500 a month, the most you can hold as a deposit is $5,000.

The move-out inspection

• You must tell the tenant they have the right to be present at the move-out inspection. Do this either in your notice asking them to leave, or within 5 days after you receive their notice that they’re moving out.
• The inspection must happen within 72 hours after the tenant returns possession of the home.
• Afterward, give the tenant a written, itemized list of any damages.

Tip: a detailed move-in report with dated photos is the best way to prove what changed. Without one, it’s hard to show that damage happened during the lease.

The 45-day return deadline

Within 45 days after the lease ends or the tenant moves out, whichever is later, you must send the tenant a written, itemized list of any deductions, along with the remaining deposit.

If damages are more than the deposit and require a third-party contractor, you must notify the tenant within the 45 days. You then have an extra 15 days to send the final itemization.

What you can deduct

• Unpaid rent, including late charges stated in the lease
• Damage caused by the tenant beyond reasonable wear and tear
• Other charges provided for in the lease
• Actual damages from the tenant breaking the lease
• Unpaid utility bills owed to a third-party provider, but only if you gave the tenant written notice ahead of time

If you make deductions during the lease, you must notify the tenant in writing within 30 days.

Wear and tear vs. damage

Usually normal wear and tear	Usually tenant damage
Faded paint, light scuffs	Large holes in walls, unapproved paint colors
Carpet worn in walkways	Pet stains, burns or tears in carpet
Loose door handles from use	Broken doors or windows
Minor nail holes from pictures	Missing fixtures or appliances

Keep records for two years

Virginia requires landlords to keep itemized deduction records for each tenant for the past two years, and tenants may ask to inspect them during business hours.

The cost of getting it wrong

If a landlord willfully fails to follow these rules, a court can order the landlord to return the deposit plus the tenant’s actual damages and reasonable attorney fees. One missed deadline can cost far more than the deposit itself.

A simple deposit checklist

1. Collect no more than two months’ rent.
2. Complete a signed move-in inspection with dated photos.
3. Send written notice within 30 days of any deduction taken during the lease.
4. Tell the tenant about their right to attend the move-out inspection.
5. Inspect within 72 hours of move-out.
6. Send the itemized statement and refund within 45 days.
7. Keep the records for two years.

Sources

• Va. Code § 55.1-1226: Security deposits
• Virginia DHCD: Landlord Tenant Handbook and Statement of Tenant Rights

This is general information, not legal advice. Check the current Virginia Code or talk with an attorney about your situation.

Let us handle deposits for you

Stellar Gate Management documents every move-in and move-out and follows Virginia’s deposit deadlines on every home we manage.

Call 202-710-3342 or email info@stellargatemanagement.com, or request your free rental analysis below.