If you're considering becoming a landlord in Arlington, VA, we say go ahead! A good enough reason is that landlords here make an annual average salary of $99,738, per the latest data from ZipRecruiter.com.
Once you become a Virginia landlord, rent is just one of the requirements you can set. You can also require tenants to make security deposits.
Unlike rent, though, security deposits aren't part of your income.
So, what exactly are these payments, and when can you use them? What are the laws surrounding these "payments" in Arlington, VA?
The property management experts at PMI Smart Choice provided insights into those questions, so please read on.
What Are Security Deposits?
A security deposit is a sum of money a landlord may require from a tenant as a financial security against lease agreement violations. Landlords don't have to require tenants to make a security deposit, but those who do must adhere to Arlington, VA, regulations to ensure fairness and transparency.
Limits on Security Deposits in Arlington, VA
Under the Virginia Residential Landlord and Tenant Act (VRLTA), landlords can charge a security deposit equivalent to two months' rent for most residential properties. Such a limit makes rental housing accessible and reasonable for tenants.
Still, many landlords require only a deposit equivalent to one month's rent. Consider doing the same, as this can position you as an empathetic, caring landlord. The more positively your tenants perceive you, the more likely they are to renew the lease agreement.
Deductions from Security Deposits
Virginia landlord-tenant laws give landlords the right to deduct from the security deposit. Here are the following valid reasons for deductions:
- Damage beyond normal wear and tear
- Unpaid or delinquent rent
- Cleaning costs if the tenant has left the rental in an unsatisfactory condition
Clear communication with tenants about their responsibilities can significantly reduce disputes when returning the deposit.
Security Deposit Refund Rules
The VRLTA outlines several tenant rights in Virginia, including the right to get a refund of the security deposit they paid. Landlords must return the unspent portion of the deposit within 45 days after renters vacate the property. If landlords have made deductions, they must provide a written itemized statement to the tenant outlining the amount of money withheld and why.
Tips for Managing Security Deposits
Here are practical tips to help you achieve rental property compliance and make managing security deposits a breeze:
- Keep the security deposit in a separate account
- Notify tenants in writing if changes occur regarding deposit terms
- Remind tenants throughout the tenancy about their property upkeep responsibilities
Incorporating those practices can lead to a more transparent and trustful relationship with your tenants.
Make Managing Security Deposits Simpler
Remember: Security deposits in Arlington, VA, should never exceed two months' rent, and you must always return all unused portions to your tenants. If you must make deductions, ensure you account for them in a written itemization.
If all those tasks and laws seem too complicated and time-consuming, don't worry. You can always rely on PMI Smart Choice's full-service real estate and property management solutions. Our owner, Sam Nassar, and managing partner, Adam Abdallah, bring decades of combined experience in computer technology, real estate, and management to the company.
Connect with us today so we can get started with your free rental analysis!
