Virginia Security Deposit Laws in 2025

Look, security deposits cause more arguments between landlords and tenants than probably anything else in the rental world. I've been working in property management for years now, and honestly? Most of these fights could have been avoided if people just understood how Virginia's laws actually work.

So let us talk about it. No legal jargon amd no corporate-speak. Just the real information you need whether you are renting out your first property or moving into a new apartment.

What's the Deal with Security Deposits Anyway?

A security deposit is basically the money you hand over when you sign a lease - usually about a month's rent amd sometimes more. Think of it as the landlord's safety net. If you trash the place, skip out on rent, or leave it looking like a disaster zone, that's what they use to fix things.

But here's what a lot of people get wrong: that money isn't the landlord's to spend. They're holding it for you. When you move out, assuming you didn't destroy anything, you should get it back. The Virginia Residential Landlord and Tenant Act spells this out pretty clearly, though like most legal stuff, it takes some digging to understand.

The whole point is covering actual damages - not normal aging of the apartment. And that difference? That's where things get messy.

How Much Can They Actually Charge You?

Here is something that surprises people moving from other states: Virginia does not have a cap on security deposits. None. Technically, a landlord could ask for three months rent up front if they wanted to.

But do they? Usually not.

Most landlords around here stick to one month's rent for the deposit. Sometimes you'll see 1.5 months, especially if you've got pets or if the place has expensive finishes. In Northern Virginia and Richmond, where the rental market's pretty competitive, two months isn't unheard of.

Now, just because there's no legal maximum doesn't mean landlords should go crazy. Asking for four or five months' rent as a deposit? That's probably going to land you in hot water. Courts don't like it when deposits seem more like a way to squeeze tenants than actual protection against damages. Plus, you're just going to scare away good renters.

If you're a landlord reading this - stick with the norm. One month's rent works for most situations. Maybe add a pet deposit if you're allowing animals. But don't get greedy about it.

Will Your Deposit Earn Interest? (Spoiler: Nope)

This comes up all the time. Tenants ask me, "So, I'll get interest on my deposit when I move out, right?"

Not in Virginia, you won't.

The state law doesn't require landlords to pay you any interest on your security deposit. Zero. Whatever interest that money earns while sitting in their account - or not sitting anywhere special - stays with the landlord. Virginia Code § 55.1-1226 does not even mention interest requirements.

Does it seem a little unfair? Yeah, some people think so. It's your money, after all. But until the legislature changes the law, that's how it works here. Some states require landlords to pay interest - Virginia isn't one of them.

What Can Actually Get Deducted from Your Deposit?

Okay this is the big one. When you move out what can the landlord actually take money for?

Virginia law says landlords can deduct for:

Unpaid rent. Pretty straightforward. If you owe rent when you leave, expect it to come out of your deposit.

Actual damage to the property. Notice I said "actual damage." Not regular wear and tear. Big difference.

Late fees you racked up - If you were constantly paying rent late and got charged fees those can be deducted.

Breaking the lease. If you had a pet when you were not supposed to. Let someone move in who was not on the lease. Yeah, they can charge you for that.

Serious cleaning issues. If you left the place absolutely filthy then reasonable cleaning costs can be deducted.

Now this is where it gets tricky. What counts as "damage" versus normal wear and tear?

Normal wear and tear

• Paint that is faded from sunlight
• Minor scuffs on walls. We are talking small marks from moving furniture around.
• Carpet that is worn down in high traffic areas
• A few small nail holes from hanging pictures

Actual damage

• Holes punched in the drywall. We all know what I am talking about.
• Carpet that got burn marks or huge stains
• Broken appliances or cabinet doors
• Pet damage to the floors or doors

The Virginia Department of Housing and Community Development basically says if it is from normal use of the property over time you cannot charge for it. If it is from the tenant being careless or destructive then you can.

I have seen landlords try to charge for repainting the entire apartment after a two year tenancy. Unless the tenant painted the walls themselves or really damaged them, that is not going to fly. Paint fades and that is life.

You Need to Give Tenants a Receipt (Yes, Really)

A lot of landlords don't know this, but when you collect a security deposit in Virginia, you have to give the tenant a written receipt. Not optional.

The receipt needs to include:

• Your name and address (or your property management company's info)
• How much you collected
• What date you got it
• What it's for

This comes straight from Virginia Code § 55.1-1226. If you're using property management software - and at Hemlane we automatically generate these - you're probably fine. But if you're doing this old-school with paper checks and handwritten notes, don't skip this step.

Also, if you sell the property, the new owner has to tell tenants in writing where their deposits are now being held. I've seen this get forgotten constantly during property sales, and it causes confusion months later when someone moves out and doesn't know who to contact about their deposit.

The 45-Day Clock: Do Not Mess This Up

Virginia gives landlords 45 days after you move out to return your security deposit. That is it. 45 days from when you officially vacate and turn in your keys.

During those 45 days, the landlord needs to:

• Inspect the property
• Figure out what needs fixing or cleaning
• Get estimates or complete the work
• Put together an itemized list of deductions
• Send you the remaining deposit plus that itemized list

According to Virginia Code § 55.1-1226, if the landlord misses this deadline - even by a day - they could lose their right to make ANY deductions. And the tenant can sue for double the deposit amount.

I have seen this happen. A landlord kept a $1400 deposit because the tenant legitimately damaged the property but they did not get around to sending the itemized statement until day 47. The tenant sued and got $2800. Expensive mistake.

So tenants - make absolutely sure you give your landlord a forwarding address in writing before you leave. Can't get mad if your check gets lost because they had no idea where to send it.

Landlords - mark your calendar. Set a reminder. Don't blow this deadline.

The $125 Rule About Receipts

Here is a detail that trips people up, if you are deducting more than $125 from someone's deposit then you need to provide actual receipts or invoices showing what you paid.

You cannot just write "Carpet cleaning is $300" and expect that to hold up. Under Virginia Code § 55.1-1226 you need documentation like invoices from the cleaning company, receipts from the hardware store and whatever proves what you spent.

Some landlords do not like this rule because it feels like extra work. But honestly, it protects everyone. Tenants know you are not just making up numbers and landlords have proof if things end up in court.

Pro tip- take photos during move-in and move-out inspections. Time-stamp them if you can. I can't tell you how many disputes would've been avoided if either the landlord or tenant had just taken pictures. We push this hard for anyone using Hemlane's platform because it's saved people from small claims court more times than I can count.

When Deposits Don't Come Back (And What to Do About It)

So your landlord kept your whole deposit and you think that's garbage. Or they took out way more than they should have. What now?

First step: Send them a letter. Certified mail is best. Explain why you think the deductions are wrong and ask for your money back within a week or two. Sometimes this is enough to get things resolved.

Second step: If they ignore you or refuse you can file a lawsuit in the Virginia General District Court. For amounts under $5,000 this is small claims territory. The filing fee is usually somewhere around $35-50 depending on the county.

Third step: Here is where it gets interesting. If the landlord willfully violated that 45 day rule or wrongfully kept your deposit you can sue for up to double the deposit amount. Plus court costs. Plus attorney fees if you win.

Virginia Code § 55.1-1226 gives tenants real teeth here. I watched a case where a landlord kept a $1200 deposit with zero justification and ended up paying over $3000 total when you factored in the doubled amount and the tenant's legal fees.

That is a harsh lesson in following the rules.

What Happens When the Property Gets Sold?

Properties change hands all the time. If you are a tenant and your landlord sells the building you might worry about what happens to your deposit.

Good news is that the law protects you. When a property gets sold, all those security deposits transfer to the new owner. They inherit the responsibility for returning your money when you eventually move out.

Under Virginia Code § 55.1-1226, the new landlord has to notify you in writing about:

• The change in ownership
• Where your deposit is now
• How to reach them

You don't pay a new deposit just because there's a new owner. That would be ridiculous. Your original deposit just transfers over.

For landlords selling properties: make sure this gets handled correctly in your sales paperwork. I've seen deals where nobody clarified whether the deposits would be credited to the buyer at closing or handled separately, and it turned into a nightmare. Don't be that person.

Keep Good Records (Trust Me on This)

Whether you own one rental or twenty, keeping organized records isn't just good practice - it's your protection if things go south.

Landlords should keep:

• Copies of every lease
• Signed security deposit receipts
• Move-in inspection reports with photos or video
• Any receipts for work done on the property
• All emails or texts with tenants about the deposit
• Move-out inspection documentation

Tenants should keep:

• Your copy of the deposit receipt
• Photos you took at move-in showing the condition
• Records of maintenance requests you submitted
• Photos from when you moved out
• Proof you gave them a forwarding address

Modern property management platforms handle a lot of this automatically. At Hemlane, we keep everything organized digitally so you're not digging through filing cabinets later. But if you're managing rentals on your own, just create a folder for each property or tenant. Future you will be grateful.

Real Talk: How to Avoid Deposit Drama

For Tenants:

Take photos of EVERYTHING when you move in. I mean everything. Every room, every corner and every existing scratch or stain. Email them to your landlord with timestamps. Keep copies.

Report problems as soon as they happen. Do not let a small leak become a big mold issue. Put your maintenance requests in writing so there is a paper trail showing you tried to prevent damage.

Clean like your mom's coming to visit when you move out. Clean the oven., wipe down the baseboards and vacuum everywhere including behind the fridge. Spending a weekend deep cleaning can save you hundreds in deductions.

Ask for a walk-through before your official move-out date. If the landlord points out issues you might have time to fix them yourself.

For Landlords:

Create a detailed move-in checklist and have tenants sign it. This is your baseline for judging the condition later.

Be realistic about wear and tear. That carpet had already been there for seven years when the tenant moved in. Do not try to charge them for replacing it.

If you see problems during routine inspections address them right away with the tenant. Do not wait until move-out to surprise them with charges.

Return deposits quickly, even if you do not need the full 45 days. It builds goodwill and reduces your chances of getting sued over something petty.

When you deduct money, be transparent about it, show receipts and explain your reasoning. Most disputes happen because landlords are not clear about what they are charging for.

Stuff People Get Wrong About Security Deposits

"I can just skip my last month's rent and let the landlord keep my deposit."
Nope, security deposits and rent are legally separate things. You cannot decide to stop paying rent and call it even. That is actually a lease violation and could get you evicted.

"If the tenant breaks the lease, I keep the whole deposit automatically."
Not exactly, you can deduct for actual damages and losses from the broken lease but you still have to return whatever's left with an itemized statement within 45 days.

"Tenants always have to pay for professional carpet cleaning."
Only if they left the carpets in really bad shape. However, normal vacuuming and spot cleaning are fine. You cannot require professional cleaning unless the lease specifically says so and even then, only if it is actually needed.

"Small nail holes mean I can charge for wall repairs."
Nah, a few nail holes from hanging pictures are normal wear and tear. Unless the tenant went crazy and put 50 holes in one wall you probably cannot charge for patching those.

Military Members Get Special Treatment

If you are active duty military, you get extra protections under both Virginia law and the federal Servicemembers Civil Relief Act. If you get orders that require you to move you can usually break your lease without the typical penalties.

For security deposits this means you still get your money back minus legitimate deductions for damages even if you leave early because of military orders. The landlord cannot keep the whole thing just because you did not finish the lease term.

If this applies to you, give your landlord copies of your orders and follow the proper notice requirements. Most landlords near military bases like Norfolk, Quantico or Fort Lee are familiar with how this works.

Bottom Line

Virginia's security deposit laws aren't that complicated once you understand them. The system mostly works if both sides follow the rules and act like reasonable adults.

Quick recap of the important stuff:

• No legal limit on deposit amounts (but stick to 1-2 months' rent)
• Landlords don't have to pay you interest
• You've got 45 days to return deposits with an itemized list - don't miss this deadline
• Need receipts for deductions over $125
• Can't charge for normal wear and tear
• Violate the rules and you might pay double damages

Whether you are protecting your investment as a landlord or just trying to get your money back as a tenant, understanding these rules and documenting everything is your best bet.

At Hemlane, we've built our property management platform specifically to help with this stuff - making it easier for landlords to comply with state laws while keeping everything organized. But even if you're going it alone, just follow Virginia's rules and you'll avoid most of the headaches.

Resources You Might Need:

• Virginia Residential Landlord and Tenant Act (Full Text)
• Virginia Department of Housing and Community Development
• Virginia General District Courts (for small claims)
• Legal Aid Justice Center (free legal help if you qualify)

This is general information about Virginia security deposit laws, not legal advice. For your specific situation, talk to a lawyer or your local housing authority.