SEARCH SITE
VIRGINIA LAW PORTAL
- Code of Virginia
- Virginia Administrative Code
- Constitution of Virginia
- Charters
- Authorities
- Compacts
- Uncodified Acts
- RIS Users (account required)
SEARCHABLE DATABASES
- Bills & Resolutions
session legislation - Bill Summaries
session summaries - Reports to the General Assembly
House and Senate documents - Legislative Liaisons
State agency contacts
ACROSS SESSIONS
- Subject Index: Since 1995
- Bills & Resolutions: Since 1994
- Summaries: Since 1994
Developed and maintained by the Division of Legislative Automated Systems.
2003 SESSION
Be it enacted by the General Assembly of Virginia:
1. That § 55-248.15:1 of the Code of Virginia is amended and reenacted, and that the Code of Virginia is amended by adding in Article 2 of Chapter 13.2 of Title 55 a section numbered 55-248.15:2 as follows:
§ 55-248.15:1. Security deposits.
A. A landlord may not demand or receive a security deposit, however
denominated, in an amount or value in excess of two months' periodic rent. Upon
termination of the tenancy, such security deposit, whether it is property or
money, plus any accrued interest thereon, held by the landlord as security as
hereinafter provided may be applied solely by the landlord (i) to the payment
of accrued rent and including the reasonable charges for late payment of rent
specified in the rental agreement; (ii) to the payment of the amount of damages
which the landlord has suffered by reason of the tenant's noncompliance with §
55-248.16, less reasonable wear and tear; or (iii) to other damages or charges as
provided in the rental agreement. The security deposit, any accrued interest and any
deductions, damages and charges shall be itemized by the landlord in a written
notice given to the tenant, together with any amount due the tenant within
forty-five 45 days after termination of the tenancy and delivery of
possession.
Nothing in this section shall be construed by a court of law or otherwise as
entitling the tenant, upon the termination of the tenancy, to an immediate
credit against the tenant's delinquent rent account in the amount of the
security deposit. The landlord shall apply the security deposit in accordance
with this section within the forty-five 45-day time period.
The landlord shall notify the tenant in writing of any deductions provided by
this subsection to be made from the tenant's security deposit during the course
of the tenancy. Such notification shall be made within thirty 30 days of the
date of the determination of the deduction and shall itemize the reasons in the same manner as
provided in subsection B. Such notification shall not be required for deductions
made less than thirty 30 days prior to the termination of the rental
agreement. If the landlord willfully fails to comply with this section, the court shall order
the return of the security deposit and interest thereon to the tenant, together with actual
damages and reasonable attorneys' fees, unless the tenant owes rent to the
landlord, in which case, the court shall order an amount equal to the security deposit and interest
thereon credited against the rent due to the landlord. In the event that
damages to the premises exceed the amount of the security deposit and require the services of a third party
contractor, the landlord shall give written notice to the tenant advising him of
that fact within the forty-five 45-day period. If notice is given as
prescribed in this paragraph, the landlord shall have an additional fifteen
15-day period to provide an itemization of the damages and the cost of repair. This
section shall not preclude the landlord or tenant from recovering other damages to which he may be
entitled under this chapter. The holder of the landlord's interest in the
premises at the time of the termination of the tenancy, regardless of how the
interest is acquired or transferred, is bound by this section and shall be
required to return any security deposit received by the original landlord and
any accrued interest that is duly owed to the tenant, whether or not such
security deposit is transferred with the landlord's interest by law or equity,
regardless of any contractual agreements between the original landlord and his
successors in interest.
B. The landlord shall:
1. Accrue interest at an annual rate equal to one percentage point below the
Federal Reserve Board discount rate as of January 1 of each year on all
property or money held as a security deposit. However, no interest shall be due
and payable unless the security deposit has been held by the landlord for a
period exceeding thirteen 13 months after the effective date of the rental
agreement or after the effective date of any prior written or oral rental
agreements with the same tenant, for continuous occupancy of the same dwelling
unit, such security deposit earning interest which begins accruing from the
effective date of the rental agreement, and such interest shall be paid only
upon termination of the tenancy, delivery of possession and return of the
security deposit as provided in subsection A;
2. Maintain and itemize records for each tenant of all deductions from security deposits provided for under this section which the landlord has made by reason of a tenant's noncompliance with § 55-248.16 during the preceding two years; and
3. Permit a tenant or his authorized agent or attorney to inspect such tenant's records of deductions at any time during normal business hours.
C. Upon request by the landlord to a tenant to vacate, or within five days
after receipt of notice by the landlord of the tenant's intent to vacate, the
landlord shall make reasonable efforts to advise the tenant of the tenant's
right to be present at the landlord's inspection of the dwelling unit for the
purpose of determining the amount of security deposit to be returned. If the
tenant desires to be present when the landlord makes the inspection, he shall
so advise the landlord in writing who, in turn, shall notify the tenant of the
time and date of the inspection, which must be made within seventy-two 72 hours
of delivery of possession. Upon completion of the inspection attended by the tenant, the landlord
shall furnish the tenant with an itemized list of damages to the dwelling unit known to exist at the
time of the inspection.
D. If the tenant has any assignee or sublessee, the landlord shall be entitled to hold a security deposit from only one party in compliance with the provisions of this section.
§ 55-248.15:2. Schedule of interest rates on security deposits.
A. The interest rate established by § 55-248.15:1 varies annually with the annual rate being equal to one percentage point below the Federal Reserve Board discount rate as of January 1 of each year. The purpose of this section is to set out the interest rates applicable under this chapter.
B. The rates are as follows:
1. July 1, 1975, through December 31, 1979, 3.0%.
2. January 1, 1980, through December 31, 1981, 4.0%.
3. January 1, 1982, through December 31, 1984, 4.5%.
4. January 1, 1985, through December 31, 1994, 5.0%.
5. January 1, 1995, through December 31, 1995, 4.75%.
6. January 1, 1996, through December 31, 1996, 5.25%.
7. January 1, 1997, through December 31, 1998, 5.0%.
8. January 1, 1999, through June 30, 1999, 4.5%.
9. July 1, 1999, through December 31, 1999, 3.5%.
10. January 1, 2000, through December 31, 2000, 4.0%.
11. January 1, 2001, through December 31, 2001, 5.0%.
12. January 1, 2002, through December 31, 2002, 0.25%.
13. January 1, 2003, through December 31, 2003, 0%.
Thereafter, the interest rate shall be determined in accordance with subsection B of § 55-248.15:1.