Virginia Security Deposit Law

Maximum deposit

Landlords may not demand or receive a security deposit of more than two months' periodic rent, and any up-front insurance premiums count toward that same cap (Va. Code §§ 55.1-1226(A), 55.1-1206, 55.1-1208(A)(7)). (Va. Code § 55.1-1226(A), Va. Code § 55.1-1206(A), (C), Va. Code § 55.1-1208(A)(7))

Two months' periodic rent; the deposit plus any damage- or renter's-insurance premiums collected before move-in may not together exceed two months' rent

Return deadline

Landlords must return the deposit, with an itemized written list of any deductions, within 45 days after the tenancy ends or the tenant vacates, whichever is later (Va. Code § 55.1-1226(A)). (Va. Code § 55.1-1226(A), Va. Code § 55.1-1226(E))

Itemized statement of deductions

Landlords must itemize the deposit and all deductions in a written notice to the tenant, including an itemized list of damages after the move-out inspection (Va. Code § 55.1-1226(A), (G)). (Va. Code § 55.1-1226(A), (G))

Interest on the deposit

Virginia law does not require landlords to pay interest on security deposits; § 55.1-1226 is silent on interest (Va. Code § 55.1-1226). (Va. Code § 55.1-1226)

Penalty for wrongful withholding

A landlord who willfully fails to comply with the deposit rules must return the deposit and pay the tenant's actual damages and reasonable attorney fees, unless the tenant owes rent, in which case the deposit is credited against the rent due (Va. Code § 55.1-1226(E)). (Va. Code § 55.1-1226(E))

Where the deposit is held

The VRLTA does not make Virginia landlords keep deposits in a separate or escrow account; escrow is mentioned only for holding an unclaimed deposit when no forwarding address is given (Va. Code § 55.1-1226(B)). (Va. Code § 55.1-1226(B))

Receipt or written notice of the deposit

Virginia's deposit section has no deposit-receipt rule; the written-receipt duty in § 55.1-1204(J) covers rent paid in cash or money order (Va. Code §§ 55.1-1204(J), 55.1-1226). (Va. Code § 55.1-1226, Va. Code § 55.1-1204(J))

Move-in condition checklist

Within five days after the tenant moves in, a Virginia landlord must give a written report of existing damage, which stands as correct unless the tenant objects in writing within five days (Va. Code § 55.1-1214(A)). (Va. Code § 55.1-1214)

A written policy may let the tenant prepare the report or have both parties prepare and sign it jointly (§ 55.1-1214(B)); at move-out the tenant may attend an inspection held within 72 hours of delivering possession (§ 55.1-1226(G)).

Pet deposits

Virginia defines a pet deposit as part of the security deposit, so it counts toward the two-month cap and follows the same return and itemization rules (Va. Code §§ 55.1-1200, 55.1-1226(A)). (Va. Code § 55.1-1200, Va. Code § 55.1-1226(A))

'Security deposit' means any refundable deposit ... 'or as a pet deposit'.

Nonrefundable fees

Virginia caps the nonrefundable application fee at $50 plus actual third-party screening costs ($32 for HUD-regulated units) and, since July 2026, bars fees for maintenance or repairs unless the tenant caused the damage (Va. Code §§ 55.1-1203(C), 55.1-1208(C)). (Va. Code § 55.1-1203, Va. Code § 55.1-1208(C))

Payment-processing fees are allowed only if a fee-free payment method is offered and are capped at the landlord's actual third-party cost (§ 55.1-1204(J)); the security deposit itself must be refundable by definition (§ 55.1-1200).

Small-landlord exemptions

Virginia landlords with four or fewer rental units (or up to a 10% interest in four or fewer) do not have to accept a security deposit by credit or debit card (Va. Code § 55.1-1204(J)(2)). (Va. Code § 55.1-1204(J)(2))

All other deposit rules in § 55.1-1226 apply regardless of size since the VRLTA was extended to all landlords (2019 c. 712).

Deposit alternatives and installments

A Virginia landlord may let a tenant buy approved damage insurance instead of paying a security deposit, and the tenant can switch to a full cash deposit at any time without landlord consent (Va. Code § 55.1-1226(I)-(J)). (Va. Code § 55.1-1226(I)-(J), Va. Code § 55.1-1206)

The insurer must be SCC-licensed and cover at least the required deposit for the whole lease; a landlord who requires damage insurance cannot collect deposit plus up-front premiums above two months' rent (§§ 55.1-1206, 55.1-1208(A)(7)).