Richmond is one of the hottest rental markets in the United States. Nearly 57% of households in Richmond are occupied by renters.
This figure is far greater than the national average of 35.2%. The owner-occupied housing unit rate is nearly 67% in the Commonwealth of Virginia.
The demand for rental housing provides landlords with a lucrative opportunity. It is time to start your rental journey by collecting the security deposit and providing housing services.
Read on for a comprehensive guide to security deposits in Richmond, VA. Explore topics such as relevant security deposit laws and tenant rights.
What Is a Security Deposit?
Landlords rely on rental income to pay for their personal and business expenses. Their financial future is vulnerable when tenants do not pay their rent or damage their property. There is considerable risk associated with renting out a property.
Collecting a security deposit is one way that a landlord mitigates this risk. Landlords reserve the right to schedule routine property inspections. They will also inspect the property at lease termination.
If there is visible property damage, the landlord will incur expenses to fix it. They can legally confiscate the security deposit as a means to pay for this repair.
How Much Is the Security Deposit?
Many states do not regulate how much a landlord can charge for a security deposit. However, the Commonwealth of Virginia caps the security deposit as equivalent to two months' rent. If the rent is $2,000 per month, the landlord cannot collect more than $4,000.
With this threshold set, some landlords charge a maximum of two months' rent. Others will offer a better deal and only charge one month's rent.
The security deposit amount is negotiable. The right time to negotiate your security deposit is prior to signing the rental agreement.
What Other Virginia Rules Govern Security Deposits
The Commonwealth of Virginia has laws and regulations on the books for security deposit management. For example, landlords have 45 days after the lease terminates to refund all or a portion of the security deposit.
Landlords cannot assess fees to process or return the security deposit. They also have to provide written notice that they have received security deposit funds.
Virginia does not require landlords to place security deposit funds in a separate account. They also do not make landlords pay interest on the collected funds. A change in property ownership does not facilitate any changes to the security deposit section of the lease agreement.
There are a number of allowable deductions that allow landlords to tap into the security deposit. Uncollected rent and excessive property damage fall into this category. Other acceptable deductions include unpaid utility costs and any lease violations that affect a landlord's revenue.
Your Guide to Collecting a Security Deposit in Richmond
A property management company can help you collect a security deposit. Rental management services also perform property inspections that justify these security deposit deductions.
Renters Warehouse in Richmond, VA has the experience to make this a seamless process. If you want to learn more about security deposits, contact us today at Renters Warehouse to speak with an expert.
