Virginia Security Deposit Law 2026: Limits, Deadlines & Deductions
- Can I charge a nonrefundable "administrative fee" on top of the two-month deposit? Nonrefundable fees are allowed if the lease provides for them, but anything functioning as security counts toward the two-month cap "however denominated." Keep true fees modest, in the lease, and clearly labeled.
- What if the tenant owes me more than the deposit? Send the itemized disposition within 45 days showing the deductions exceed the deposit, and pursue the balance separately. If the tenant broke the lease, you may retain the balance against their obligations — but the…
- Do I really have to do a move-out inspection within 72 hours? The statute ties the inspection to 72 hours after delivery of possession, after you've given the 5-day notice of the right to attend. Do it — the inspection report is what makes your deductions defensible.
Virginia caps deposits at two months' periodic rent, gives you a generous 45 days to return the money with a written itemization (Va. Code § 55.1-1226(A)) — and punishes willful violations with the full deposit back plus actual damages and attorney fees (Va. Code § 55.1-1226(E)). It also layers on inspection timelines most landlords miss. Every section below is from the Code of Virginia.
The short version: Never collect more than two months' rent as a deposit, however you label it. Within 45 days after the tenancy ends or the tenant vacates (whichever is later), send a written notice itemizing the deposit, every deduction, and the amount due back. If damages exceed the deposit and need a contractor, give written notice within the 45 days and you get 15 more days to itemize. Willfully blow the process and the court orders the whole deposit returned plus actual damages and the tenant's attorney fees.
The statute table
| Citation | What it says (one line) |
|---|---|
| Va. Code § 55.1-1226(A) | No landlord may demand or receive a security deposit, however denominated, exceeding two months' periodic rent. |
| Va. Code § 55.1-1226(A) | The deposit and all deductions, damages, and charges must be itemized in a written notice to the tenant, with any amount due, within 45 days after termination or vacating, whichever is later. |
| Va. Code § 55.1-1226(A) | Deductions are limited to: accrued rent (including lease-specified late charges); damages from tenant noncompliance, less wear and tear; other lease-provided charges; and actual breach-of-lease damages. |
| Va. Code § 55.1-1226(E) | Deductions made during the tenancy must be disclosed in writing within 30 days of the determination; none required for deductions made within 30 days of termination. |
| Va. Code § 55.1-1226(E) | Willful failure to comply means the court orders return of the deposit plus actual damages and reasonable attorney fees (credited against rent if the tenant owes rent). |
| Va. Code § 55.1-1226(E) | If damages exceed the deposit and require a third-party contractor, written notice within the 45-day period buys an additional 15 days to itemize. |
| Va. Code § 55.1-1226 | No separate escrow account is required, and the current section imposes no interest obligation on deposits. (An earlier version of this guide cited a repealed interest rule for large landlords — it is not in the current § 55.1-1226.) |
| Va. Code § 55.1-1214(A) | The move-in inspection report itemizing damages must be delivered within 5 days after occupancy; the tenant has 5 days after receipt to object in writing. |
| Va. Code § 55.1-1226 | Within 5 days of receiving the tenant's notice of intent to vacate, notify the tenant in writing of the right to be present at the move-out inspection; conduct it within 72 hours of delivery of possession. |
Limits: how much can you charge?
Two months' periodic rent — and the statute says "however denominated," so calling part of it a "move-in fee" or "damage waiver" doesn't dodge the cap if it's really security. Verify your total against the Security Deposit Max Checker before the lease is signed.
The 45-day deadline, precisely
You have 45 days after the termination date of the tenancy or the date the tenant vacates, whichever occurs last, to give the tenant a written notice itemizing the deposit, deductions, damages, and charges, together with any amount due back. Key wrinkles:
- Early termination: if the tenant breaks the lease or leaves without proper notice, you still send the written disposition within 45 days — but you may retain the balance against the tenant's financial obligations under the lease or the Act.
- Contractor extension: if damage exceeds the deposit and needs a third-party contractor, give the tenant written notice of that fact within the 45 days, and you get 15 additional days to deliver the itemization and repair costs.
- The inspection chain: notify the tenant in writing of the right to attend the move-out inspection within 5 days of receiving their notice of intent to vacate, and inspect within 72 hours of getting possession back.
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Deductions and the itemized list
Permitted deductions under § 55.1-1226(A): accrued rent (including reasonable late charges specified in the lease), damages from the tenant's noncompliance with their statutory duties less reasonable wear and tear, other damages or charges the rental agreement provides for, and actual damages for breach of the lease. Deductions taken during the tenancy need their own written notice within 30 days of when you determined them. Build the final statement with the Security Deposit Deduction Letter Generator.
Interest and where the money sits
Virginia does not require a separate escrow account, and the current text of § 55.1-1226 imposes no interest obligation on security deposits. An earlier version of this guide stated that interest could be required when a landlord owns more than 10 rental units and holds a deposit for more than 13 months — that rule does not appear in the current section and should not be relied on. (One holding rule does exist: under § 55.1-1226(B), if no forwarding address is provided, the landlord may continue to hold the deposit in escrow, and after one year from the end of the 45-day period may remit it to the State Treasurer as unclaimed property.)
The penalty, spelled out
Under § 55.1-1226(E), if the landlord willfully fails to comply, the court shall order the return of the security deposit, together with actual damages and reasonable attorney fees. The one statutory safety valve: if the tenant owes rent, the court orders the deposit credited against the rent due instead. There's no fixed multiplier like 2x — the exposure is the full deposit plus whatever actual damages the tenant proves plus their lawyer's bill.
FAQ
Can I charge a nonrefundable "administrative fee" on top of the two-month deposit?
Nonrefundable fees are allowed if the lease provides for them, but anything functioning as security counts toward the two-month cap "however denominated." Keep true fees modest, in the lease, and clearly labeled.
What if the tenant owes me more than the deposit?
Send the itemized disposition within 45 days showing the deductions exceed the deposit, and pursue the balance separately. If the tenant broke the lease, you may retain the balance against their obligations — but the written notice is still due.
Do I really have to do a move-out inspection within 72 hours?
The statute ties the inspection to 72 hours after delivery of possession, after you've given the 5-day notice of the right to attend. Do it — the inspection report is what makes your deductions defensible.
Can I deduct for carpet cleaning?
Only if the lease provides for it or the carpet damage goes beyond normal wear and tear. Routine turnover cleaning between tenants is not chargeable as "damage."
What if I can't get a contractor quote within 45 days?
That's exactly what the contractor extension is for: give written notice within the 45-day window that damages exceed the deposit and require a third-party contractor, and you get 15 more days to itemize.
Does the 45 days run from when the tenant gives notice or when they leave?
From the later of the tenancy's termination date or the date the tenant actually vacates. A tenant who gives notice but holds over keeps your clock from starting.
More security deposit guides
- Security deposit laws by state
- Vermont security deposit law
- Washington security deposit law
- Utah security deposit law
- West Virginia security deposit law
Last verified: September 27, 2026. This is general information, not legal advice. Verify with a licensed Virginia attorney before acting.