With the average state rent at an all-time high, Virginia landlords have the potential to make more money than they have in the past decade. However, to collect this passive income, you must adhere to state laws that protect both your property and your tenants.
Understanding security deposits is the first step toward immediate compliance. Read on for some information on the maximum deposit amount, Virginia security deposit laws, and why they're important.
Security Deposits: The Basics
A security deposit is a sum of money that a tenant gives to their landlord immediately when renting a property. The funds are proof that they intend to care for the property within the terms of the lease. They're a promise not to damage anything and keep the unit clean and problem-free.
Basically, they're a property protection measure for landlords.
If the tenant cares properly for the unit, they get the security deposit back after the lease is terminated. If they renew their lease, they still don't get it back until they move out. It's up to the landlord to check the property and determine whether the tenant gets the deposit back.
However, there are some laws regulating deposits and their return.
Virginia Security Deposit Laws
As of 2024, there are several laws that VA landlords must follow when collecting and managing security deposits.
The first is that a security deposit can't be a higher sum than two month's rent for the unit. After the landlord collects it, they need to keep it in a separate account from other earnings.
There also needs to be a written agreement for security deposits. This agreement will state the sum of the deposit. It also will have clear conditions that the renter must follow to ensure its return after they finish renting.
Landlords need to return the deposit within 45 days after the lease ends. This is, however, only true if all conditions outlined in the old written agreement were met. If the lease term is over 13 months long, the landlord must also pay interest on the security deposit when returning it.
Some of these are new this year, so it's critical that you remain updated so you don't find yourself in legal trouble. A property management team always knows recent security deposit laws like the back of their hands. You won't need to worry about problems arising.
The Benefits of Security Deposits
Security deposits are important because they motivate the renter to take good care of the property.
Beyond that, though, they offer recourse for you if there is destruction or uncleanliness. If the tenant does not take care of the property, they don't get their deposit back, and you can use it to hire maintenance and cleaning services. You won't need to pay extra money out of pocket if damage takes place.
Boost Your Property Security With Upfront Deposits
Now that you know the ins and outs of security deposits in Vienna, VA, it's time to begin protecting your property the right way. PMI Smart Choice is committed to helping landlords set security deposit amounts and manage those deposits according to Virginia laws. Get a free rental analysis to begin the process of valuing and renting out your property.
