Virginia Security Deposit Law for Hampton Roads Landlords: What to Know

Security deposits are a standard part of move-in costs in Virginia rentals. 

Under Virginia security deposit law, these deposits act as financial protection for landlords against unpaid rent, excessive damage, or other losses during a tenancy.

The state’s rules fall under the Virginia Residential Landlord and Tenant Act (VRLTA), and every Hampton Roads landlord must follow them to stay compliant and avoid costly penalties.

Quick Answer: What Does Virginia Security Deposit Law Require?

Virginia allows landlords to charge up to two months’ rent as a security deposit and requires refunds within 45 days after move-out. Deductions are allowed only for unpaid rent, damages beyond normal wear and tear, and unpaid utilities.

Understanding Virginia’s Security Deposit Laws for Landlords

Virginia’s security deposit regulations outline how much you may charge, how funds should be handled, what deductions are legal, and the deadlines for refunds.

While this guide offers clarity, always consult your attorney for legal advice related to your specific rental property.

How Much Can a Landlord Charge for a Security Deposit in Virginia?

Virginia law limits the maximum security deposit to no more than two months’ rent.

For example, if the monthly rent is $1,500, the highest allowable deposit is $3,000.

This rule applies statewide, including all Hampton Roads cities.

Where Should Hampton Roads Landlords Hold Tenant Security Deposits?

Virginia previously required deposits to be held in interest-bearing accounts, but that requirement has been removed. Landlords may now store deposits in any legally compliant manner.

Still, it’s wise to consult your attorney, accountant, or Hampton Roads property management professional to ensure proper handling and documentation under Virginia landlord-tenant law.

When Can Hampton Roads Landlords Deduct From a Tenant’s Deposit?

Landlords in Virginia may legally deduct from a security deposit for specific reasons, including:

• Unpaid Rent: Even if a tenant leaves early, rent owed under the lease may be deducted.
• Excessive Damage: Tenants must return the property in the same condition, excluding normal wear and tear. Damage beyond that can be charged.
• Unpaid Utilities: If utilities for which the tenant is responsible are left unpaid, landlords may deduct the outstanding balance.

Landlords may not deduct for routine cleaning or normal wear and tear.

Are Security Deposit Receipts Required in Virginia?

No. Virginia does not require landlords to issue a receipt for a tenant’s deposit.

However, many landlords still provide written confirmation for recordkeeping and clarity, which helps maintain transparency and trust.

Are Move-Out Inspections Required by Virginia Law?

Yes. Both landlords and tenants have the right to conduct move-out inspections.

Virginia law requires landlords to:

• Provide notice of the inspection date and time within five days of receiving the tenant’s move-out notice.
• Allow tenants to respond in writing if they want to be present.

Even after tenants announce their move-out, landlords must respect their privacy and follow notice requirements.

Recordkeeping Rules for Virginia Landlords

Virginia landlords are required to maintain all security deposit records, including itemized deductions, for at least two years.

These records must be made available to tenants or their authorized representatives upon request.

When and How to Return a Security Deposit in Virginia

Landlords in Virginia must return the deposit, minus lawful deductions, within 45 days after the tenant vacates.

Refunds must include:

• Any remaining deposit balance
• An itemized list of deductions

Delivery may be done via certified mail or hand delivery.

If the tenant provides no forwarding address, the landlord must hold the deposit for one year, then remit it to the State Treasury as unclaimed property.

A property manager can help ensure this process meets all security deposit refund rules and VRLTA requirements.

Penalties for Not Returning Security Deposits in Virginia

Failure to follow refund deadlines or requirements can result in:

• Loss of the right to withhold any portion of the deposit
• Liability for the tenant’s attorney fees
• Potential damages awarded through legal action

Compliance is far more cost-effective than disputes.

What Happens to a Security Deposit When You Sell a Rental Property in Virginia?

When selling a rental property with an active tenancy, landlords have two options:

1. Return the deposit (full or partial) to the tenant prior to transfer, or
2. Transfer the deposit to the new property owner.

If transferring, the landlord must notify the tenant of:

• The amount transferred
• The new landlord’s name and address

Once transferred, the deposit becomes the responsibility of the new landlord.

Security Deposit Alternatives for Virginia Landlords (Rhino Insurance)

In addition to traditional deposits, landlords now have access to Rhino deposit insurance, a modern alternative that can make move-in more affordable for tenants and reduce vacancy rates.

Rhino works by replacing the large upfront deposit with a small monthly premium. For landlords, it provides coverage for damages, missed rent, and other qualifying losses — offering strong protection under a different model.

Osprey Property Management offers Rhino as an option for owners seeking flexibility and compliance with Virginia security deposit law.

Managing Security Deposits the Right Way Protects Your Virginia Rental Property

Understanding and following Virginia’s security deposit laws keeps you compliant and reduces the risk of disputes.

Osprey Property Management helps landlords across Virginia Beach, Norfolk, Chesapeake, Suffolk, Portsmouth, and the wider Hampton Roads region remain compliant, handle move-outs, and manage tenants with confidence.

If you need help managing security deposits or want to explore Rhino Insurance, contact us to learn how our team can support your rental property.

FAQs About Security Deposits for Virginia Landlords

Can a landlord charge a non-refundable security deposit in Virginia?

No. All security deposits in Virginia must be refundable under the VRLTA.

How long does a Virginia landlord have to return a security deposit?

Landlords must return deposit funds within 45 days of move-out.

What can landlords legally deduct from a security deposit in Virginia?

Deductions may only be made for unpaid rent, unpaid utilities, and damages that exceed normal wear and tear.

Do local rules differ across Hampton Roads cities?

No. Virginia law governs the entire state. However, professional Hampton Roads property management experts ensure compliance across each locality.