Security deposit interest in Virginia
No — Virginia does not require landlords to pay interest on security deposits.
There is no interest to calculate — here is what does apply
Virginia sets no interest requirement, so there is no figure to work out. The rules below are the ones that decide whether you get your deposit back in full, which is usually the larger sum anyway.
Deadline to return your deposit
45 days after the tenancy ends.
Miss it and the consequences below start to apply.
What to do next
- Give your landlord a written forwarding address. Several states make the return duty conditional on it, and Virginia's rules are summarised below.
- Photograph the unit at move-out, dated, before you hand back the keys. The dispute is almost always about condition.
- If the deadline passes, put the request in writing and cite Va. Code Sec. 55.1-1226 (Virginia Residential Landlord and Tenant Act). Keep a copy of what you sent and when.
Not legal advice. This is general information, not legal advice. Security deposit laws change and vary by jurisdiction. Verify with the cited statute or consult a licensed attorney in your state before taking action.
What does Virginia law actually say?
Virginia does not require landlords to pay interest on residential security deposits. The former interest requirement was repealed effective 2014, and the current statute contains no interest provision. Deposits are capped at two months' rent.
The landlord must maintain itemised records of all deductions for at least two years and must return the deposit, together with an itemised written statement of any deductions, within 45 days of termination and delivery of possession. The tenant has the right to be present at a move-out inspection conducted within 72 hours of vacating, and the landlord must give reasonable notice of that inspection. Landlords may apply the deposit to unpaid rent, damages beyond normal wear and tear, and other lawful charges under the rental agreement, and may also apply it to unpaid financial obligations after the 45-day period, subject to further notice.
If the amount due exceeds the deposit, the landlord may bring an action within one year. Where the deposit exceeds the amount owed, any balance must be paid within the statutory period.
What if your landlord does not comply?
No interest obligation, so no interest penalty. Failure to comply with the deposit return provisions makes the landlord liable under Section 55.1-1251, which allows the tenant to recover actual damages and reasonable attorney fees. Where a landlord willfully fails to comply, the tenant may recover the deposit wrongfully withheld plus attorney fees. Failure to maintain the required itemised records creates a presumption that no deductions were justified.