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.
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.
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.
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.
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.
Landlords in Virginia may legally deduct from a security deposit for specific reasons, including:
Landlords may not deduct for routine cleaning or normal wear and tear.
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.
Yes. Both landlords and tenants have the right to conduct move-out inspections.
Virginia law requires landlords to:
Even after tenants announce their move-out, landlords must respect their privacy and follow notice requirements.
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.
Landlords in Virginia must return the deposit, minus lawful deductions, within 45 days after the tenant vacates.
Refunds must include:
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.
Failure to follow refund deadlines or requirements can result in:
Compliance is far more cost-effective than disputes.
When selling a rental property with an active tenancy, landlords have two options:
If transferring, the landlord must notify the tenant of:
Once transferred, the deposit becomes the responsibility of the new landlord.
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.
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.
No. All security deposits in Virginia must be refundable under the VRLTA.
Landlords must return deposit funds within 45 days of move-out.
Deductions may only be made for unpaid rent, unpaid utilities, and damages that exceed normal wear and tear.
No. Virginia law governs the entire state. However, professional Hampton Roads property management experts ensure compliance across each locality.