New Virginia Rental Laws Explained: What Tenants and Landlords Need to Know

TL;DR

• Effective July2025, Virginia caps security deposits at two months' rent and limits late fees to 5% of the monthly rent.
• Rent hikes are now limited to 5% annually unless the lease permits a higher increase with proper notice.
• Landlords must register properties with the Virginia Department of Housing and provide a 30‑day notice before terminating a month‑to‑month tenancy.
• Eviction processes now require a 14‑day cure period for most lease violations, and a 30‑day notice for non‑payment after a 5‑day grace period.
• Habitability standards have been tightened: landlords must address heating, water, and pest issues within 48hours of written notice.

Virginia's rental market has seen a flurry of legislative updates this year, aiming to balance tenant protections with landlord rights. If you're renting or leasing property in the Old Dominion, you’ll want to know how these Virginia rental laws affect your lease, your wallet, and your day‑to‑day living.

Virginia Residential Landlord and Tenant Act (VRLTA) is a comprehensive statute governing the rights and responsibilities of landlords and tenants throughout Virginia. The 2025 amendments to the VRLTA introduce new limits on security deposits, rent increases, and eviction timelines, among other changes.

Why the Changes Matter

Housing affordability and tenant stability have become hot topics statewide. The General Assembly responded by tightening rules that were previously vague. For renters, the updates promise clearer protection against sudden rent spikes and unfair lease terminations. For landlords, the new framework offers standardized procedures that reduce legal ambiguity.

Key Provisions of the 2025 Updates

1. Security Deposit Limits

Security deposit is the sum of money a tenant pays upfront to cover potential damages or unpaid rent can now be no more than two months' rent. Previously, landlords could demand up to three months. The deposit must be held in a separate, interest‑bearing account, and the earned interest belongs to the tenant.

• Landlords must provide a written receipt within five business days.
• If the deposit exceeds the limit, the excess must be returned within 30days of lease signing.

2. Rent Increase Caps

The new rent increase limit restricts how much a landlord can raise rent each year is set at 5% of the current rent, unless the lease explicitly permits a higher increase with a 60‑day written notice. This cap applies to both fixed‑term and month‑to‑month leases.

• Landlords must deliver the notice via certified mail or another verifiable method.
• Any increase above 5% without proper notice is considered a breach of the VRLTA.

3. Revised Eviction Process

Eviction moratoriums that were temporary during the pandemic have now been codified into a structured process. For most lease violations (e.g., unauthorized pets, noise complaints), tenants receive a 14‑day “cure period” to fix the issue before a landlord can file for eviction.

For non‑payment of rent, the tenant gets a 5‑day grace period followed by a 30‑day notice to pay. If the balance remains unpaid, the landlord may proceed with the eviction filing.

4. Late Fee Restrictions

The amendment caps late fee charges applied when rent is not paid on time at 5% of the monthly rent. Previously, landlords could set any reasonable amount. Late fees must be disclosed in the lease agreement; otherwise, they are unenforceable.

5. Strengthened Habitability Standards

Habitability standards define the minimum conditions a rental unit must meet for health and safety now require landlords to respond to heating, water, or pest issues within 48hours of receiving a written complaint. Failure to meet this timeline can be deemed a constructive eviction, giving tenants the right to terminate the lease without penalty.

6. Updated Lease Termination Notice

For month‑to‑month tenancies, landlords must give a 30‑day written notice before ending the tenancy. This replaces the prior 60‑day requirement and aligns Virginia with many neighboring states.

• The notice must specify the termination date and be delivered in person or via certified mail.
• Tenants can provide a 30‑day notice to vacate without penalty, provided they leave the unit in good condition.

7. Mandatory Landlord Registration

Effective July2025, every landlord who owns one or more rental units must register with the Virginia Department of Housing (VDH) the state agency overseeing housing policy and compliance. Registration includes providing contact information, the number of units owned, and proof of liability insurance.

• Failure to register results in a $500 fine per unit and possible civil action.
• Registrants receive an annual compliance certificate that can be shown to tenants.

Old vs. New: Quick Comparison

Compliance Checklist for Landlords

1. Update lease agreements to reflect the 5% rent‑increase cap and 5% late‑fee limit.
2. Audit existing security deposits; refund any amount exceeding two months' rent.
3. Prepare a standard 14‑day cure‑period notice template for lease violations.
4. Set up a separate, interest‑bearing account for security deposits and track interest earned.
5. Register each rental property with the Virginia Department of Housing before July1,2025.
6. Implement a 48‑hour response protocol for heating, water, and pest complaints.
7. Ensure all termination notices are delivered in writing with the required 30‑day lead time.

Practical Tips for Tenants

• Ask your landlord for proof of the security‑deposit account and interest rate.
• Keep copies of all written communications-especially notices about rent hikes or repairs.
• If you receive a cure‑period notice, act within 14days to avoid eviction.
• Document any habitability issues with photos and timestamps; send a written request for repairs and note the 48‑hour response expectation.
• Check the Virginia Department of Housing’s public registry to confirm your landlord’s registration status.

Resources & Next Steps

The Virginia General Assembly’s website publishes the full text of the 2025 amendments. The Virginia Department of Housing also offers free compliance webinars for landlords and tenant‑rights workshops for renters. Bookmark these resources, set calendar reminders for key dates (like the July registration deadline), and consider consulting a local attorney if you’re unsure about any clause.

Frequently Asked Questions

What is the new maximum security deposit in Virginia?

Landlords can now collect up to two months' rent as a security deposit. Anything higher must be returned to the tenant within 30days of signing the lease.

How much can a landlord increase rent each year?

The statutory cap is 5% of the current rent per year, unless the lease includes a clause allowing a higher increase with a 60‑day written notice.

What notice must a landlord give to end a month‑to‑month tenancy?

A 30‑day written notice is now required. The notice must state the exact termination date and be delivered in person or via certified mail.

Are there new limits on late fees?

Yes. Late fees cannot exceed 5% of the monthly rent and must be clearly disclosed in the lease agreement.

Do landlords need to register with the state?

All landlords must register each rental property with the Virginia Department of Housing by July1,2025, providing contact details, unit count, and proof of liability insurance.