Collecting security deposits in Virginia offers several benefits for landlords, including:

  • Financial Protection: Security deposits serve as a financial cushion for landlords against potential property damage caused by tenants beyond normal wear and tear.
  • Lease Agreement Enforcement: The security deposit acts as an incentive for tenants to adhere to the terms of the lease agreement, knowing that compliance affects the return of their deposit.
  • To Cover Unpaid Rent: Landlords can use the security deposit to cover unpaid rent, reducing the financial impact of tenant defaults.
  • Mitigating Cleaning Costs: Landlords can use the deposit to cover the costs of cleaning the rental unit if the tenants left cause damage that requires cleaning, like stains on the carpet, ensuring the property’s ready for new tenants.
  • Legal Recourse: In the event of a dispute, having a security deposit can provide a clear legal framework within Virginia's landlord-tenant laws for resolving issues related to property damage or lease violations.

Guide to Virginia’s Security Deposit Law

1. Virginia Security Deposit Limit

In Virginia, landlords are bound by state law to a maximum limit on the security deposit they can charge tenants, which is equivalent to two months' rent. This cap is designed to balance the need for landlords to protect their property and financial interests while preventing excessive financial burdens on tenants.


Adhering to this limit is crucial for landlords to ensure compliance with state regulations and avoid legal disputes. It also provides a clear guideline for both landlords and tenants on the acceptable amount for security deposits, fostering a more transparent and fair rental process.

2. Nonrefundable Fees

Nonrefundable fees are charges that landlords may impose for specific services or to cover particular costs, and unlike security deposits, these fees are not returned to the tenant at the end of the lease term. In Virginia, landlords might collect nonrefundable fees for pet accommodations, enhanced cleaning services, or processing applications.

It's essential for these fees to be clearly outlined in the lease agreement and justified, to maintain transparency and fairness in the landlord-tenant relationship. However, landlords must be cautious not to label part of the security deposit as non-refundable, as this would conflict with Virginia's regulations regarding security deposits.

3. Storing a Tenant’s Deposit in Virginia

Virginia landlords are recommended to store tenants' security deposits in a separate account designated solely for that purpose. This ensures that the deposits are protected and not commingled with the landlord's personal or operational funds. The account can be either interest-bearing or non-interest-bearing.


Note that Virginia law does not require landlords to pay interest to tenants on held security deposits. This segregation of funds is a safeguard for tenants, ensuring that their deposits are readily available for refund when due, and provides a clear financial record for both parties.

4. Written Notice after Security Deposit Receipt

Upon receiving a security deposit, Virginia landlords may provide tenants with a written receipt. This must include the amount of the deposit held, the location of the separate account where the deposit is stored, and any accrued interest details if applicable.

This receipt is a crucial part of maintaining transparency in the landlord-tenant relationship, ensuring tenants are informed about the handling of their deposits. It also serves as a record-keeping tool, helping to prevent disputes over security deposit handling and ensuring both parties are clear about the terms from the outset.

5. Reasons to Withhold a Tenant’s Security Deposit in Virginia

Landlords in Virginia are legally permitted to withhold a tenant's security deposit for several reasons, primarily related to covering unpaid rent and/or late fees, repairing damages to the property beyond normal wear and tear, covering financial loss due to early lease termination of the lease, and addressing any lease agreement violations.


This could also include charges outlined in the lease agreement, as well as significant cleaning costs if the property is left in a very poor state. The law is designed to protect landlords from financial losses due to tenant negligence or misconduct.

However, landlords must provide a detailed, itemized list of deductions to the tenant, ensuring transparency and fairness in the process. This provision encourages tenants to maintain the property and comply with the lease terms, knowing their financial stake in the security deposit.

6. A Walk-Through Inspection

Conducting a walk-through inspection is a crucial practice in the rental process, typically performed at the beginning and end of a tenancy. This inspection allows both landlords and tenants to document the property's condition, noting any existing damages before occupancy and assessing any changes at the end of the lease term.

In Virginia, this practice can help justify claims for deductions from the security deposit for repairs or cleaning. It serves as a preventive measure against disputes over property conditions and ensures a fair and transparent assessment of any damages charged to the tenant.

7. Security Deposit Refund in Virginia

Virginia law stipulates a specific timeframe within which landlords must return a tenant's security deposit after the lease has ended. A notice of right to attend final inspection must be provided within 5 days.


Then within 45 days after the end of the lease or when the tenant vacates the property, whichever is later, the security deposit (or its remaining balance after deductions) must be returned to the tenant. If any portion of the deposit is withheld for repairs, unpaid rent, or other lease violations, the landlord must provide an itemized list of deductions to the tenant.

8. Change in Property Ownership

When a rental property changes ownership in Virginia, the responsibility for the tenants' security deposits also transfers to the new owner. This transfer includes all obligations related to the deposit, such as storing it properly, handling it according to state laws, and returning it to the tenant at the end of the lease, subject to any lawful deductions.

This ensures that tenants' security deposits are safeguarded regardless of changes in property ownership and that new owners are fully aware of their responsibilities towards existing tenants, maintaining continuity and security for both parties in the rental agreement.


Understanding the security deposit law in Virginia is important to prevent any disputes between you and your tenants. If you have specific questions, hire a professional property management company like First Providence Property Management to help you navigate this process smoothly. Contact First Providence Property Management today!

Disclaimer: Please note that the information provided in this blog is intended for general guidance and should not be considered as a replacement for professional legal advice. It is important to be aware that laws pertaining to property management may change, rendering this information outdated by the time you read it.