Virginia offers great potential for a successful rental property business. However, before you dive into this big responsibility, you need to make sure you thoroughly read Virigina’s state law code to understand how landlords and their operations are regulated. Below are some general Virginia landlord-tenant laws that should help you get started in your research.
Required Disclosures
Required disclosures are information that landlords are required to tell their tenants in writing as dictated by state law. As a landlord, you need to make sure you study these laws closely, as not disclosing any of the following information could make you liable in a lawsuit.
Some common required disclosures include the identity of the landlord and their agent and the existence of mold in the rental unit. In Virginia, an additional notice you must provide concerns military air installation. If the property is adjacent to a military air installation, it may be in an accident or excessive noise prone zone, and the landlord must provide written notice of this fact to potential tenants. Also, if you plan on demolishing or substantially rehabilitating the property, or the property has defective drywall, you need to disclose this information as well. Additionally, if the unit used to manufacture methamphetamine and has not been cleaned properly, you need to disclose this information in writing too.
Finally, as is common with most states, landlords need to provide a written list of tenant rights and a rental rules list along with a copy of the lease.
Rent and Fees
Paying rent is your tenant’s primary responsibility, and collecting it is yours. There are several laws in Virginia that govern how you can collect rent and other fees. First, Virginia state law says that landlords can charge a nonrefundable application fee of $50 or less, and the landlord is also responsible for out-of-pocket fees induced by going to a third party for background or credit checks. The only way a landlord may charge a fee of under $32 is when the property is a public housing unit subject to regulation by the HUD.
Regarding rent increases, there is no statewide rent control in Virginia. It is, however, illegal for a landlord to raise rent in retaliation for and actions the tenant may partake in. For example, if the tenant files a housing code violation or testifies against you, you may not raise rent due to this reason.
Lastly, late fees are limited to either 10% of the monthly rent or 10% of whatever the remaining balance is, whichever amount is less.
Evictions
When evicting a tenant, it’s important to remember that the United States protects seven classes against housing discrimination, including race, color, national origin, religion, familial status, sex, or disability. In Virginia, state law protects the following classes as well: source of income, sexual orientation, gender identity, military status, and age. Be sure to hire a real estate attorney who is knowledgeable about eviction laws in Virginia if you have any question about whether evicting a tenant could be interpreted as discriminatory.
As far as other eviction regulations, Virginia landlord tenant laws dictate two different notice options. If the tenant is partaking in criminal activity or any behavior that poses a risk to health and safety, the landlord can evict the tenant immediately without providing any opportunity to fix the behavior. This is called an unconditional notice to quit.
If the tenant is violating the lease in a way that isn’t criminal, and can be remedied by ceasing a behavior or paying the rent, the landlord may issue a 30-day notice to cure or quit (also known as a VA pay or quit notice). If the tenant cannot pay the amount due or “cure” the violation within 21 days, they must use the last nine days to gather their things and quit the property. For more severe lease violations that cannot be cured, the landlord is not required to give the tenant an opportunity to fix the issue.
Security Deposits
In Virginia, the landlord cannot charge more than two months’ rent for a security deposit, which must be returned to the tenant within 45 days after the lease’s termination. The landlord must also provide an itemized list of all deductions to the tenant upon move out.
Conclusion
Investing in property in Virginia can be a great business opportunity, but you first need to familiarize yourself with state laws to avoid potential legal issues and ensure everyone involved in the agreement gets the respect they deserve.
