Property Management Laws And Regulations In Virginia

Virginia regulates third-party property management through several authorities at once, and the rules that matter most to a management company are the ones covering your license, your client trust accounts, and the money you hold on behalf of owners and tenants. This guide covers those rules for professional managers, with the statute or agency regulation behind each one.

Everything below is sourced to Virginia's own statutes, agency rules, and court materials rather than to secondhand summaries. Specific dollar amounts and deadlines do change; the citations do not, so you can always open the authority and confirm the current text before you act on it.

Licensing Requirements For Property Managers

Virginia requires a real estate broker's license for individuals and a firm license for business entities (other than sole proprietorships) that act as a real estate broker, which under Board regulation includes managing rental property for another for compensation. The Real Estate Board, part of DPOR, also imposes a detailed statutory duty section specific to licensees who manage property for landlord clients.

• No individual may act as a real estate broker, and no business entity other than a sole proprietorship may act as, offer to act as, or advertise as a real estate firm, without a corresponding license from the Real Estate Board. (Va. Code § 54.1-2106.1)
• A licensee engaged by a landlord to manage property must perform in accordance with the property management agreement, exercise ordinary care, promptly inform the owner of material facts of which the licensee has actual knowledge, maintain confidentiality of client financial information, and timely account for money and property in which the owner has an interest. (Va. Code § 54.1-2135)
• A written residential property management agreement must state a definite termination date (or it automatically terminates 90 days after execution absent one), the management fee and payment terms, and the services to be provided. (Va. Code § 54.1-2135)

Client Trust Account Rules

Virginia's trust-account regime for property managers combines a statutory escrow-deposit deadline (Va. Code § 54.1-2108.1) with detailed Real Estate Board regulations (18VAC135-20-181) covering account maintenance, broker responsibility, and an anti-commingling rule. This is the most developed area of Virginia property-management law and should be treated with care in any published guidance.

• Rent, security deposits, application deposits, and other money paid to a licensee acting on behalf of a landlord client in connection with a lease must be placed in an escrow account by the end of the fifth business banking day following receipt. (Va. Code § 54.1-2108.1)
• Escrowed funds must remain in the escrow account until disbursed in accordance with the lease, the property management agreement, or applicable statute; a managing agent who complies with the statute has immunity from liability for that compliance absent gross negligence or intentional misconduct. (Va. Code § 54.1-2108.1)
• Each firm or sole proprietorship must maintain one or more federally insured escrow accounts in the name in which it is licensed, and the principal broker (or a supervising broker/licensee with signing authority) is responsible for those accounts. (18 Va. Admin. Code § 135-20-181)
• Required escrow deposits include down payments, earnest money, application deposits, rental payments, and rental security deposits; the escrow account balance must at all times be sufficient to cover all funds designated to be held for clients, and licensees may not disburse funds unless sufficient money is on deposit for that specific client or property. (18 Va. Admin. Code § 135-20-181)
• Commingling the funds of any client or other person with a broker's own personal or operating funds is prohibited. (18 Va. Admin. Code § 135-20-181)

Trust account rules are where Virginia management companies get into trouble fastest, because a shortage is a licensing problem and not just a bookkeeping problem. The habits that keep you clean are the boring ones: deposit on time, never let operating money and client money mix, reconcile every account every month, and keep a per, property record you could hand to an auditor without preparing it first. Our guide to preparing for a trust account audit walks through what examiners actually ask for.

Security Deposit Rules

The Virginia Residential Landlord and Tenant Act caps security deposits at two months' rent, requires an itemized 45-day accounting, and no longer requires interest to be paid on deposits.

• No landlord may demand or receive a security deposit in an amount or value in excess of two months' periodic rent. (Va. Code § 55.1-1226)
• Within 45 days after termination of the tenancy or the date the tenant vacates, whichever occurs later, the landlord must provide the tenant an itemized written accounting of any deductions from the security deposit, together with any amount due. (Va. Code § 55.1-1226)
• If a landlord willfully fails to comply with the deposit-accounting requirements, a court must order return of the deposit together with the tenant's actual damages and reasonable attorney's fees. (Va. Code § 55.1-1226)
• If the landlord or managing agent is a real estate licensee, compliance with the security-deposit escrow requirements of Va. Code § 55.1-1226 is deemed compliance with the escrow provisions of § 54.1-2108 and the Real Estate Board's corresponding regulations. (Va. Code § 55.1-1226)

Lease Agreements And Required Disclosures

The VRLTA requires landlords to offer a written rental agreement and, as of mid-2025, to itemize deposit and fee charges on the first page of that agreement.

• A landlord must offer the tenant a written rental agreement, and if no written agreement is provided, the VRLTA imposes a statutory tenancy of 12 months not subject to automatic renewal. (Va. Code § 55.1-1204)
• A landlord must furnish the tenant a statement of tenant rights and responsibilities developed by the Virginia Department of Housing and Community Development. (Va. Code § 55.1-1204)
• Beginning on the first page of a written rental agreement, a landlord must itemize all charges comprising the security deposit, the rent due per payment period, and any additional one-time charges due before the commencement date or included in the first rental payment, immediately below a statement that no additional deposits or rent will be charged unless listed there or added later by written addendum. (Va. Code § 55.1-1204.1)

Entry Notice And Tenant Privacy

Virginia requires 72 hours' notice for routine, unrequested maintenance entry, with an emergency exception.

• A landlord must give a tenant at least 72 hours' notice of routine maintenance to be performed that was not requested by the tenant. (Va. Code § 55.1-1229)
• Except in an emergency, or when it is impractical to do so, the landlord must give the tenant notice of entry; a tenant may not unreasonably withhold consent to the landlord entering to exhibit the unit to prospective purchasers, mortgagees, or tenants. (Va. Code § 55.1-1229)
• A landlord may enter the dwelling unit without the tenant's consent in case of emergency. (Va. Code § 55.1-1229)

Rent, Late Fees, And Other Charges

Virginia has no statewide rent-increase percentage cap, but it does cap late fees and, as of mid-2025, requires upfront fee itemization; a 90-day rent-increase notice requirement takes effect July 1, 2027.

• A late charge for unpaid rent may not exceed the lesser of 10 percent of the periodic rent or 10 percent of the remaining balance due, and a landlord may not charge a late fee unless it is provided for in the written rental agreement. (Va. Code § 55.1-1204)
• Beginning on the first page of the written rental agreement, a landlord must itemize all charges comprising the security deposit, per-period rent, and any one-time charges due before or with the first rental payment. (Va. Code § 55.1-1204.1)

Fee income is also taxable income, and how you record management fees, late fees, and pass, through charges affects both your compliance position and your books. See our guide to Virginia property management tax deductions for the reporting side.

Fair Housing Obligations

The Virginia Fair Housing Law is enforced by the Virginia Fair Housing Office within DPOR/the Real Estate Board and protects several classes beyond those covered by the federal Fair Housing Act.

• The Virginia Fair Housing Office, within the Real Estate Board division of DPOR, administers and enforces the Virginia Fair Housing Law. (Va. Code § 36-96.1 et seq.)
• The Virginia Fair Housing Law prohibits discrimination in residential housing based on race, color, religion, national origin, sex, elderliness, familial status, disability, source of funds, sexual orientation, gender identity, or military status. (Va. Code § 36-96.1 et seq.)
• 'Source of funds' means any source that lawfully provides funds to or on behalf of a renter or buyer, including any governmental or nongovernmental assistance, benefit, or subsidy program, and became a protected class effective July 1, 2020. (Va. Code § 36-96.1 et seq.)

Habitability And Safety Duties

Virginia imposes an affirmative maintenance duty on landlords tied to building and housing codes, limits landlord liability to actual damages from a failure to exercise ordinary care, and separately prohibits retaliation.

• A landlord must comply with applicable building and housing codes materially affecting health and safety and must make repairs and do whatever is reasonably necessary to keep the premises in a fit and habitable condition. (Va. Code § 55.1-1220)
• A landlord must keep common areas in multifamily premises clean and structurally safe, and maintain electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances in good and safe working order. (Va. Code § 55.1-1220)
• A landlord is liable only for the tenant's actual damages proximately caused by the landlord's failure to exercise ordinary care in meeting these habitability duties. (Va. Code § 55.1-1220)
• Virginia law prohibits landlord retaliation against a tenant for exercising rights or remedies under the Virginia Residential Landlord and Tenant Act. (Va. Code § 55.1-1258)

Eviction Basics

Virginia evictions proceed as unlawful detainer actions in General District Court, preceded by a statutory pay-or-quit notice for nonpayment of rent.

• For nonpayment of rent, a landlord must serve written notice giving the tenant 14 days to pay the rent due before the landlord may terminate the rental agreement and file an unlawful detainer action in General District Court. (Va. Code § 55.1-1245)
• For a bounced check or rejected electronic payment, the tenant likewise has 14 days after written notice is served to cure the default before the landlord may terminate the tenancy and seek possession. (Va. Code § 55.1-1245)

Recent Changes Worth Tracking

These are the Virginia changes most likely to affect a management company's procedures. Confirm the effective date against the source below before you update a lease template or a policy.

• Effective July 1, 2025: New fee disclosure statement requirement: written rental agreements must itemize, on the first page, all charges comprising the security deposit, per-period rent, and any one-time upfront charges. (Va. Code § 55.1-1204.1)
• Effective July 1, 2026: The standard notice period a tenant has to cure nonpayment of rent before a landlord may terminate the tenancy for nonpayment was extended from 5 days to 14 days. (Va. Code § 55.1-1245)
• Effective April 1, 2026: The Real Estate Board repealed its older general escrow-account regulation, consolidating escrow account maintenance and management requirements into a single successor regulation. (18 Va. Admin. Code § 135-20-180 (repealed); see 18 Va. Admin. Code § 135-20-181)

Staying Compliant Without Guessing

Most Virginia compliance failures are not decisions, they are drift: a deposit that sat too long, a reconciliation that got skipped in a busy month, a lease template that never got updated after a statute changed. Build the calendar first. Monthly trust reconciliations, an annual review of your lease and disclosure packet against current statutes, and a documented process for deposits and refunds cover the large majority of what an examiner will ask about.

This guide is a starting point for professional managers, not legal advice. For a specific dispute, a novel fact pattern, or anything with real money at stake, work with a Virginia attorney, and confirm the current text of any statute cited above with the Virginia Real Estate Board (Department of Professional and Occupational Regulation) or the Virginia legislature.

Sources

Every fact above is drawn from one of the official sources below.

• Va. Code § 54.1-2106.1, Code of Virginia (Virginia's Legislative Information System)
• Va. Code § 54.1-2135, Code of Virginia (Virginia's Legislative Information System)
• Va. Code § 54.1-2108.1, Code of Virginia (Virginia's Legislative Information System)
• 18 Va. Admin. Code § 135-20-181, Virginia Real Estate Board / Virginia Administrative Code
• Va. Code § 55.1-1226, Code of Virginia (Virginia's Legislative Information System)
• Va. Code § 55.1-1204, Code of Virginia (Virginia's Legislative Information System)
• Va. Code § 55.1-1204.1, Code of Virginia (Virginia's Legislative Information System)
• Va. Code § 55.1-1229, Code of Virginia (Virginia's Legislative Information System)
• Va. Code § 36-96.1 et seq., Virginia Department of Professional and Occupational Regulation
• Va. Code § 36-96.1 et seq., Code of Virginia (Virginia's Legislative Information System)
• Va. Code § 55.1-1220, Code of Virginia (Virginia's Legislative Information System)
• Va. Code § 55.1-1258, Code of Virginia (Virginia's Legislative Information System)
• Va. Code § 55.1-1245, Code of Virginia (Virginia's Legislative Information System)
• 18 Va. Admin. Code § 135-20-180 (repealed); see 18 Va. Admin. Code § 135-20-181, Virginia Real Estate Board / Virginia Administrative Code