When you hear about Virginia a U.S. state on the East Coast with a fast‑growing rental market, the first thing that often comes to mind is how its laws shape everyday renting. In July2025 the Commonwealth rolled out a package of updates that touch almost every part of a tenancy - from how much you can charge for a Security Deposit the amount of money a landlord holds as collateral for damages to the steps a landlord must follow before filing an Eviction the legal process to remove a tenant from a rental unit. Whether you’re a first‑time renter, a seasoned landlord, or a property manager, knowing the new rules can save you money, time, and a lot of headaches.
Key Takeaways
- Security deposits are now capped at one month’s rent for most residential units.
- Landlords must give at least 60days’ written notice for any rent increase over 5%.
- Tenants gain a ‘repair‑and‑withhold’ right after a 30‑day notice period.
- Eviction filings require a mandatory mediation step and a longer notice period for non‑payment.
- New lease‑form disclosures cover pet policies, lead‑based paint, and heating system standards.
Why the Changes Matter
The 2025 overhaul was driven by three goals: protect renters from sudden spikes, give tenants clearer health‑and‑safety rights, and create a more transparent dispute‑resolution process for landlords. The Commonwealth’s Housing Authority cited a rise in informal eviction attempts and a surge in rent‑price volatility during the post‑pandemic rebound as the main catalysts. As a result, the legislation - officially titled the "Virginia Residential Tenancies Modernization Act" - blends consumer‑friendly safeguards with practical steps for property owners.
What’s New for Landlords
Landlords, you’ll notice three core areas where compliance is now mandatory.
1. Security Deposit Limits
Effective immediately, the maximum security deposit a landlord can collect is one month’s rent for any unfurnished residential lease of 12 months or less. For furnished units, the cap rises to two months’ rent, but only if the lease explicitly states the furnishing value. The law also requires landlords to provide a written, itemized receipt within five business days of receipt, and to place the deposit in a separate, interest‑bearing account. If the landlord fails to do so, the tenant can claim double the deposit amount in damages.
2. Notice Periods for Rent Increases
Previously, a 30‑day notice sufficed for any rent hike. The new law differentiates between modest and significant increases. If the raise is 5% or less, a 30‑day written notice remains acceptable. Anything above 5% now triggers a mandatory 60‑day notice, and the increase cannot exceed the regional Consumer Price Index (CPI) by more than 2% in a 12‑month period. This prevents landlords from imposing abrupt, unaffordable jumps.
3. Mandatory Disclosure Statements
Every lease agreement must now include a standardized disclosure form covering:
- Pet policies and any associated fees.
- Presence of lead‑based paint (for units built before 1978).
- Heating and cooling system age and maintenance schedule.
- Local ordinances that could affect tenancy, such as noise curfews.
Failure to attach this form means the lease is voidable at the tenant’s discretion within the first 30days.
What’s New for Tenants
Tenants receive several new tools to enforce habitability and protect their finances.
1. Repair‑and‑Withhold Right
If a landlord does not address a health‑or‑safety related repair (e.g., broken heat, plumbing leaks, mold) within 30days of written notice, the tenant may withhold rent equal to the estimated repair cost. The tenant must keep a detailed log and can still pursue legal action for damages.
2. Early Termination for Uninhabitable Conditions
When a unit is deemed uninhabitable by a certified inspector, tenants can terminate the lease without penalty, provided they give a 14‑day notice after the inspection report is delivered. The landlord must return any prepaid rent and the security deposit within 30days.
3. Expanded Anti‑Retaliation Protections
Landlords are prohibited from increasing rent, decreasing services, or filing eviction within six months after a tenant exercises any legal right (e.g., filing a repair complaint). Violations now carry a statutory penalty of up to three times the monthly rent.
Eviction Process Overhaul
Evictions have become more structured to give both parties a chance to resolve disputes before court.
- Non‑payment notices: The required notice jumps from 3 to 5 days, and the notice must include a clear statement of the amount owed and a payment deadline.
- Mediation requirement: Before filing a complaint, landlords must attempt a 30‑minute mediation session with the tenant, either in person or via a state‑approved virtual platform.
- Judicial timeline: Courts now schedule eviction hearings within 20days of filing, compared to the previous 30‑day window.
These changes aim to reduce frivolous evictions and provide a clearer path to resolution.
Comparing Old vs. New Provisions
| Aspect | Before July2025 | After July2025 |
|---|---|---|
| Security Deposit Limit | Up to two months’ rent (no cap for unfurnished) | One month’s rent (unfurnished); two months for furnished |
| Notice for Rent Increase >5% | 30days | 60days + CPI cap |
| Repair‑and‑Withhold | Not permitted | Allowed after 30days notice |
| Eviction Notice for Non‑payment | 3days | 5days with detailed statement |
| Mediation before Filing | No requirement | Mandatory 30‑minute session |
| Lease Disclosure Requirements | Ad‑hoc | Standardized form covering pets, lead, HVAC, local ordinances |
Compliance Checklist for Landlords
- Update lease templates to include the mandatory disclosure form.
- Adjust security deposit collection practices to the one‑month cap.
- Implement a rent‑increase tracking spreadsheet to stay within CPI limits.
- Train staff on the 5‑day non‑payment notice template and required details.
- Set up a mediation schedule with a certified mediator or use the state portal.
- Maintain a log of all repair requests and response times (30‑day deadline).
- Review anti‑retaliation policies and document any tenant communications.
Practical Tips for Tenants
- Keep copies of all written notices you send to the landlord - email with read receipt works best.
- Take photos or videos of any defects right after you discover them; date‑stamp them.
- If you’re withholding rent, open a separate escrow account so the money is clearly earmarked for repairs.
- Know your local CPI rate - it’s published quarterly on the Virginia Department of Finance website.
- Don’t ignore the 5‑day non‑payment notice; you still have a short window to pay or negotiate before mediation starts.
Frequently Asked Questions
Can a landlord still charge more than one month’s rent as a security deposit for an unfurnished unit?
No. The 2025 law caps the security deposit at one month’s rent for unfurnished residential leases. Exceeding that amount makes the deposit unenforceable, and the tenant can claim double the excess as damages.
What happens if my landlord refuses to make a repair after I’ve given a 30‑day notice?
You may withhold rent equal to the estimated repair cost, but you must keep detailed records and continue to pay any undisputed rent. You can also file a civil action for damages or terminate the lease if the unit is deemed uninhabitable.
Is the mediation step optional for landlords?
No. The law makes mediation a prerequisite before filing any eviction. Skipping it can result in the court dismissing the eviction case.
How is the permissible rent increase calculated under the new CPI cap?
Take the current CPI index for your geographic region, add 2%, and that sum is the maximum percentage you can raise rent by in a 12‑month period, provided the increase exceeds 5% you also need a 60‑day notice.
Do the new disclosure requirements apply to month‑to‑month leases?
Yes. Any written lease, even a month‑to‑month agreement, must include the standardized disclosure form. Oral agreements are still vulnerable to disputes, so a written lease is strongly recommended.
Next Steps
If you’re a landlord, start by reviewing your current lease templates and security‑deposit policies against the checklist above. Schedule a short training session with your property‑management team before the end of the quarter to avoid inadvertent violations.
Tenants should audit their lease for the mandatory disclosure section and keep a copy of any repair notices they send. If you suspect your landlord isn’t complying, contact the Virginia Department of Housing and Community Development for guidance.
Both parties can benefit from a quick consultation with a qualified attorney who specializes in Virginia residential law - a small investment now can prevent costly litigation later.
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