If there’s one thing we all know about rental housing laws, it’s this: just when you think you’ve mastered them, the federal government or the Virginia Department drops another update that makes you wonder if you should’ve gone to law school. (Don’t worry, we feel that way too.)
As new fee and disclosure laws reshape how Virginia residential landlord responsibilities are handled, it’s crucial to understand how these changes affect security deposits, application fees, payment receipts, and the everyday processes that keep your rental property running smoothly.
Before we jump in, here are the key things you’ll walk away with:
Key Takeaways:
- New disclosure laws require landlords to inform tenants and prospective tenants of more details than ever, from fees to housing conditions.
- Security deposit rules haven’t changed the maximum amount in Virginia, but scrutiny over deductions, written documentation, and timelines is increasing.
- Application fee handling must follow stricter standards to prevent arbitrary fees and ensure compliance.
- Strong recordkeeping, including written receipts, itemized lists, and proper notice, is your best defense if a landlord fails to follow the Tenant Act.
- Professional help from a property manager or landlord-tenant attorney can reduce risk and protect property owners from attorney fees and actual damages.
1. Why Fees and Disclosures Matter More Than Ever
Whether you manage one dwelling unit or several rental units, new disclosure statutes and local ordinances have made transparency a top priority. State and local laws now require landlords to provide prospective tenants with clearer information upfront, including applicable fees, processing fees, late fees, and any additional fees tied to services or amenities.
Not only must residential rental agreements outline these charges, but disclosure laws also require landlords to notify prospective tenants in writing about anything that could materially affect their decision to rent. That includes housing code violations, pest control issues, carbon monoxide detectors, automatic renewal provisions, and, of course, the big one: the security deposit amount.
In short, if you charge it, list it. If it affects safety, disclose it. If it’s regulated by state law or federal law, follow it. Simple yet not always easy.
2. The Security Deposit: Still Familiar, but with Higher Stakes
A security deposit is money paid by a tenant to protect the landlord against unpaid rent, damages beyond normal wear and tear, or violations of the lease agreement. While Virginia law still doesn’t cap the security deposit amount, landlords must follow stricter procedures when holding and returning the tenant’s security deposit.
Key Updates and Reinforcements in Practice:
- Deposits often must be kept in an escrow account with a financial institution.
- You must provide tenants with an itemized list of deductions after lease termination.
- A move-out inspection is critical; skip it, and you risk disputes where the landlord fails to justify deductions.
- If you withhold funds without proper notice, you may be liable for actual damages, attorney fees, and penalties under the Tenant Act.
And here’s something many forget: a pet deposit and pet fees cannot be lumped together and called the same thing. Each must be disclosed separately, along with the remaining deposit rules.
These requirements help protect both sides, but especially you, because written documentation is your strongest safeguard if disagreements arise.
3. Application Fees and Processing Fees: No More Guessing Allowed
Some of the most notable changes revolve around the application fee and the processing fees used during tenant screening. Local laws and the Tenant Act now regulate:
- How much can be charged
- What the fee can be used for
- When you must provide written notice
- How to inform tenants about their rights and screening results
You can no longer charge arbitrary fees or use application money for anything unrelated to screening. If the tenant pays an application fee, they should know exactly where it’s going.
Failure to follow these rules may result in civil and criminal fines, repayment obligations, and attorney fees, costs no landlord wants to face.
4. The Rise of Required Landlord Disclosures
You already know about the lead-based paint disclosure, but required landlord disclosures now stretch far beyond that. Depending on your jurisdiction, you may also need to disclose:
- Pending housing code violations
- Pest control schedules
- Rent control laws (where applicable)
- Family abuse protections
- Policies for paying rent and late fees that landlords may impose
- How many months’ periodic rent can you request upfront
- Written notice procedures
- The first rental payment timeline
Landlord disclosure agreements are becoming more standardized, and failing to provide tenants with the required disclosures can void parts of your rental agreement or lead to penalties.
When in doubt, document it and send it in writing.
5. Why Payment Receipts and Records Are Now Non-Negotiable
If you’re used to informal bookkeeping, the new rules may feel overwhelming. But clear records protect you from liability, especially when the landlord fails to prove payment history or proper notice.
Today, landlords must:
- Provide a written receipt for every rental payment, especially if paid in cash.
- Keep records of rent payments, application fees, pet fees, and deposits.
- Use consistent procedures to notify tenants of changes.
- Provide written documentation upon request, as required by state and local laws.
Think of it this way: if it involves money paid by a tenant, write it down. Your future self will thank you.
6. FAQs: What Landlords and Tenants Ask Most
Q1: Can I still charge any application fee I want?
No. Application fees must comply with state and local laws, and arbitrary fees are prohibited. You must inform tenants how the fee will be used and provide written notice if they request documentation.
Q2: Can the security deposit act as the last month’s rent?
Under Virginia law, no. The tenant’s security deposit cannot replace the last month’s periodic rent, even if the tenant tries to apply it themselves.
Q3: What happens if a landlord fails to return the deposit on time?
Under the Tenant Act, landlords may face actual damages and attorney fees. They may also lose the ability to claim deductions if they fail to provide an itemized list with proper notice.
Q4: Do I need a landlord-tenant attorney to navigate all this?
Not required but incredibly helpful. An attorney can clarify disclosure requirements, defend you if disputes arise, and ensure compliance that saves you from fines later.
Q5: Can a property manager help me stay compliant?
Absolutely. A professional property manager ensures required disclosures, escrow handling, rent payments, inspections, and documentation are always compliant with federal law, state law, and local ordinances.
Final Thoughts: Stay Compliant, Stay Protected
As fees and disclosure requirements tighten across Virginia, landlords must stay proactive. Whether you’re managing one rental property or several, ensuring compliance with disclosure laws, security deposit handling, lease termination rules, and written notice requirements protects both your investments and your peace of mind.
At PMI Richmond, we help property owners simplify all these complex laws so you never have to worry about unexpected penalties or paperwork errors again. From rental agreement compliance to detailed move-out inspections, we make it easy for you to stay protected.
Explore our services, schedule a free consultation, and let us help you manage your rentals with confidence.
