Overview
Virginia security deposit laws are governed by the Virginia Residential Landlord and Tenant Act (VRLTA) § 55.1-1226. Virginia provides strong tenant protections with a 45-day return deadline and strict rules on when landlords can retain deposits. The law also includes unique provisions for unclaimed deposits. Passive's deposit management platform helps landlords stay compliant with these detailed requirements.
Maximum Security Deposit
Under § 55.1-1226, no landlord may demand or receive a security deposit in an amount exceeding two months' periodic rent.
What Counts Toward the Cap
The two-month cap includes all refundable deposits, including those labeled as:
- Security deposit
- Pet deposit
- Damage deposit
Non-Refundable Fees
Non-refundable pet fees are allowed and do not count toward the two-month cap since they aren't refundable.
Return Timeline
Landlords must return the security deposit, along with an itemized list of deductions, within 45 days of:
- Termination of the tenancy, AND
- Delivery of possession by the tenant
The 45-day period starts from when the tenant vacates and surrenders the property, not from when the lease officially ends. (Maryland has comparable requirements—see Maryland security deposit laws.)
Extension for Third-Party Repairs
If damages exceed the deposit and require third-party contractor services, the landlord must:
- Notify the tenant in writing within the initial 45-day period
- The landlord then has an additional 15 days (60 days total) to provide itemization and costs
Strict Deadline Enforcement
Critical: If the landlord misses the 45-day deadline—even by a day—they may lose the right to make any deductions.
Interest Requirements
Virginia does not require landlords to pay interest on security deposits.
Prior to January 1, 2015, the VRLTA required interest on deposits held for more than 13 months. This requirement has been removed. Landlords may voluntarily offer interest if specified in the lease, but it is not required.
Storage Requirements
There is no legal requirement to store deposits in a separate or interest-bearing account. However, landlords must provide written notice within 30 days of receiving the deposit, disclosing the name and address of the financial institution where the deposit is held (upon written request from the tenant).
Move-Out Inspection Rights
Virginia tenants have the right to request a move-out inspection:
- The tenant must make the request in writing
- The inspection must occur within 72 hours after the tenant vacates and delivers possession
- Tenants have the right to be present at the inspection
Allowable Deductions
Landlords may deduct from the security deposit for:
- Unpaid rent
- Damages beyond normal wear and tear
- Other lease violations
- Reasonable charges as outlined in the rental agreement
Normal wear and tear cannot be charged to the tenant.
Unclaimed Deposits (Escheatment)
Virginia has specific rules for unclaimed deposits when tenants don't provide a forwarding address:
- If the tenant doesn't provide a forwarding address, the landlord holds the deposit
- One year after the end of the 45-day return period, the landlord must take action
- Within 90 days of that one-year mark, the landlord must escheat (transfer) the balance to the Commonwealth
- Funds are sent to the Virginia Department of Housing and Community Development
- After payment to the Commonwealth, the landlord has no further liability to the tenant
Penalties for Non-Compliance
Failure to comply with Virginia's security deposit laws may result in:
- Forfeiture of rights: Missing the deadline may result in losing the right to make any deductions
- Legal liability: Tenants may sue to recover wrongfully withheld deposits
- Potential penalties: Courts may award damages for willful violations
Common Compliance Questions
What counts as "normal wear and tear"?
Normal wear and tear includes minor scuffs on walls, slightly worn carpet in high-traffic areas, small nail holes from hanging pictures, and faded paint from sunlight. It does not include large holes in walls, stained or burned carpet, broken fixtures, or damage from pets. When in doubt, document the condition at move-in with dated photos.
How should I document the unit's condition?
Complete a detailed move-in checklist with the tenant, noting existing damage, appliance conditions, and overall cleanliness. Take timestamped photos or video of every room. At move-out, repeat the process. This documentation protects both parties and makes deduction decisions defensible if disputed. Schedule a demo to see how Passive simplifies condition tracking.
Can I deduct for unpaid utility bills?
Only if your lease specifically allows it and the utilities are in your name. If utilities are in the tenant's name, contact the utility company directly—they have their own collection processes. Never make unauthorized deductions, even for amounts you believe the tenant owes.