Overview
Virginia's security deposit laws are governed by the Virginia Residential Landlord and Tenant Act (Va. Code § 55.1-1200 et seq.). Virginia is one of the states that imposes a clear statutory cap on security deposits, limiting them to two months' rent. The law also provides a detailed framework for deposit handling, allowable deductions, and the 45-day return timeline.
This guide covers everything landlords and tenants need to know about security deposits in Virginia.
Deposit Limits
Virginia law limits security deposits to a maximum of two months' rent. This cap applies regardless of whether the unit is furnished or unfurnished.
Landlords must hold the security deposit in a separate escrow account at a federally insured financial institution in Virginia. Alternatively, the landlord may post a bond from a licensed surety in the amount of the deposit with the court. The landlord must notify the tenant in writing of the account or bond information.
Allowable Deductions
Landlords may deduct from the security deposit for the following reasons:
- Unpaid rent: Any rent owed at the time of move-out
- Damage beyond normal wear and tear: Costs to repair damage caused by the tenant, authorized occupants, or guests
- Cleaning costs: Charges to restore the unit to the condition it was in at move-in, minus normal wear and tear
- Other lease obligations: Unpaid utility charges, early termination fees, or other amounts owed under the lease
- Damage to landlord's property: Damage to property owned by the landlord beyond the dwelling unit itself
What Constitutes Normal Wear and Tear?
Normal wear and tear includes:
- Minor scuffs or marks on walls from everyday living
- Small nail holes from hanging pictures
- Carpet wear from regular foot traffic
- Gradual fading of paint or finishes from sunlight
- Minor wear on appliance surfaces from normal use
Damage beyond normal wear and tear includes:
- Large holes in walls, doors, or ceilings
- Stains, burns, or tears in carpet or flooring
- Broken windows, blinds, or light fixtures
- Pet damage to surfaces, doors, or landscaping
- Unauthorized alterations or modifications
Return Timeline
Landlords must return the security deposit within 45 days of the tenant vacating the unit or the termination of the lease, whichever occurs last. The return must include:
- The remaining deposit amount (if any deductions were made)
- An itemized list of damages and the amount charged for each item
The landlord must mail the refund and itemized statement to the tenant's last known address or forwarding address. If the tenant fails to provide a forwarding address, the landlord should mail the deposit to the last known address.
If the landlord fails to return the deposit or provide the required itemized statement within 45 days, the landlord may be liable for the full deposit amount plus actual damages and reasonable attorney's fees.
Pre-Move-Out Inspection
Virginia law allows tenants to be present during the move-out inspection. While not explicitly required as a formal pre-move-out inspection process, the landlord must conduct a move-in inspection at the beginning of the tenancy, and the written report serves as the baseline for assessing damage at move-out.
Tenants should:
- Request to be present during the final inspection
- Compare the move-out condition against the move-in inspection report
- Document the condition of the unit with photographs and videos before vacating
Dispute Resolution
If a tenant believes their deposit was wrongfully withheld, they can take the following steps:
- Send a written demand letter to the landlord requesting the return of the deposit
- File a claim in General District Court for amounts up to $25,000
- Seek statutory penalties: If the landlord acted in bad faith, the court may award actual damages plus reasonable attorney's fees
- Contact local tenant assistance organizations for mediation and legal guidance
Virginia law requires landlords to provide a written itemized list of deductions. Failure to do so within the 45-day window can result in forfeiture of the right to claim any deductions. The burden of proof is on the landlord to demonstrate that deductions were reasonable and supported by evidence.
Tenants should retain copies of the move-in inspection report, all correspondence with the landlord, and detailed photographs of the unit's condition at both move-in and move-out.