The state of Virginia has recently updated several landlord-tenant rules that affect what landlords can charge tenants, as well as how those charges have to be presented. To stay compliant with the law, it’s important to understand Virginia rental fee limits as they relate to property management.
Many landlords already use written standards for fees, but these regulations turn those best practices into enforceable legal requirements.
Let’s cover the key limits and requirements landlords need to be aware of.
Virginia Rental Fee Limits: The Basics
Virginia now limits or controls common rental fees in five important ways:
- Application fees have a statutory cap.
- Security deposits are capped and must be handled on a strict timetable.
- Late fees are limited and must be in the lease.
- Landlords may not charge processing or collection fees unless they offer a no-fee payment option.
- Leases must itemize major charges on the first page.
Application Fees: The Cap and Exception
Virginia law limits nonrefundable application fees for rental units. An application fee is not allowed to exceed $50, exclusive of actual out-of-pocket expenses the landlord pays to a third party (ex: for background checks, credit reports, or similar services). For units that are regulated by the U.S. Department of Housing and Urban Development, a separate lower cap applies.
Landlords who charge an application fee should document the fee in the application materials and keep receipts for any third-party charges. Understanding how this fits into the Virginia rental fee limit rules helps landlords avoid unintentional overcharges.
Example: If you charge $35 for your own administrative time and pay $10 to a screening company, your application form should clearly separate those amounts and show proof of the $10 charge if requested.
Security Deposits
Virginia law states that security deposits can be no more than two months’ periodic rent. When a tenancy ends, the landlord also has to settle the security deposit within the statutory timeframe. This regulation is another core part of the Virginia rental fee limit framework that restricts excessive charges.
The landlord either has to return the remaining deposit or provide an itemized statement of lawful deductions within 45 days after the tenancy ends. If deductions are being assessed because of third-party contractor repairs, the landlord may take an extra 15 days to provide the itemization. However, the landlord still needs to notify the tenant in a timely manner.
To avoid errors, create a checklist for inspections that includes move-in photos, itemized repair estimates, and written communication logs. This becomes crucial if a tenant challenges deductions.
Late Fees
Landlords cannot charge a late fee for rent unless the charge is mentioned in the written rental agreement. When late fees are allowed, the law limits them to either 10% of the rent or 10% of the remaining unpaid balance, whichever is less.
Make sure your lease agreements contain a clear late fee provision, as well as a method for calculating the fee. If a rental agreement fails to specify the late fee, you cannot unilaterally add one after the lease is already active.
Payment Processing and Collection Fees
New legislation restricts fees that are tied to payment processing as well. Now, a landlord can’t charge tenants a fee for the collection or processing of a rent payment, a security deposit, or other fees. That is, unless the landlord also offers an alternative payment method that doesn’t force additional fees on the tenant.
In practice, this means that if a landlord accepts credit or debit card payments through a third-party portal that charges convenience or processing fees, the landlord also has to provide at least one payment method that the tenant can use without paying that extra fee.
These changes form part of the state’s broader Virginia rental fee limit standards designed to keep rental transactions transparent and fair.
The law includes narrow exemptions for very small landlords in some provisions, but the safe approach for property managers is to provide a fee-free payment option and keep receipts.
Lease Presentation Requirements
For any written lease that’s entered into, extended, or renewed on or after July 1, 2025, Virginia requires an itemized list of charges on the first page of the agreement.
The list has to show the security deposit amount, the rent cost per period, and any one-time fees required before or with the first rental payment.
This statute also requires a statement near the list that informs tenants that no additional security deposits or rent will be charged unless they are listed on that page (or added by a signed addendum). This rule aims to reduce surprise fees and makes clear that off-page “side agreements” can’t be used to introduce new upfront charges.
Compliance Checklist for Landlords
Below is a short checklist landlords can use to make sure their lease agreements are compliant before presenting them to tenants.
- Include an itemized fee list on the first page of every written lease entered, renewed, or extended after July 1, 2025.
- Limit application fees to $50 or less, excluding third-party out-of-pocket expenses. Keep receipts for any third-party background or credit checks.
- Do not collect more than two months’ periodic rent as a security deposit. Prepare to return or account for the deposit within 45 days after tenancy ends.
- Only charge late fees that are written into the lease. Do not exceed the lesser of 10% of periodic rent or 10% of the remaining unpaid balance.
- If you accept fee-bearing electronic payments, also offer a fee-free payment option and provide receipts on request. Document your offered payment methods in writing.
Exceptions for Virginia Rental Fee Limits
Several 2025 updates include carve-outs for landlords who own four or fewer rental units (or who have 10% interest or less in four or fewer rental units).
For example, some payment-method rules and notice requirements don’t apply to very small landlords. Check the specific statutory language if you manage only a handful of units, because the exemptions are limited and do not cover every requirement. When in doubt, treat yourself as subject to the full rules set and follow the stricter procedures, or speak with a legal professional.
4 Enforcement Risks and Common Mistakes to Avoid
Four of the most common enforcement traps involve:
- Failure to disclose all fees on the first page of the lease
- Keeping deposits beyond the 45-day window without a proper itemized statement
- Charging unauthorized processing fees
- Applying late fees when the lease does not authorize them.
If landlords willfully violate the state of Virginia’s fee collection rules, courts may order withheld deposits to be returned to the tenant, plus any damages or attorney’s fees the tenant incurs. Keep clear records and a dated audit trail for every fee you collect.
What Landlords Should Do Now
Virginia’s 2025 changes aim to enhance transparency and restrict surprise charges. To comply, itemize promised charges on the first page of the lease, cap application and security deposit amounts, include any late fee provision in writing, and provide at least one fee-free payment option. Update your lease template, train staff on the 45-day deposit accounting rule, and log receipts for all third-party costs. These simple steps reduce legal risk and avoid disputes that cost time and money while keeping your practices consistent with Virginia rental fee limit laws.
