Taking on a new real estate property can be exciting, but it’s also a lot of work. You need to be fully informed on what the laws in the state you’re investing in require in order to treat your business and your tenants in a compliant manner.
Below is some general information to get you started on what you need to know when investing in real estate in Virginia.
Required Disclosures
In Virginia, landlords must disclose whether the property is near a military air installation zone. This means that if your properties fall within a certain proximity to a noise or accident potential zone, you must give tenants written notice to let them know.
Also, if there is defective drywall in the unit or if you have plans to demolish or significantly change the structure of the unit, you must provide written notice to any prospective renters. Similarly, if the unit was used to manufacture methamphetamines and has not been cleaned afterwards in a way that’s consistent with legal guidelines, your tenants need to know that as well in Virginia.
As with most states, Virginia also requires that landlords provide tenants a written list of their rights and give them a rental rules listalong with a copy of their written lease. This is to ensure that both the tenants and landlord are on the same page regarding what is expected from them and what their responsibilities include throughout the duration of the lease.
Evictions
Eviction laws in Virginia say that if the tenant, while occupying the property, does something that poses a risk to health or safety, the landlord can issue an unconditional notice to quit immediately and does not have to give any time to remedy the violation.
Additionally, Virginia landlord tenant laws dictate that in the case that the tenant violates terms within the lease agreement that are not criminal or harmful in nature, landlords can issue a 30-day notice to cure or quit (also known as a VA pay or quit notice). If the tenant cannot fix the issue and comply within the first 21 days, then they must use the remaining nine days to move all their stuff out of the property and vacate it. Fixing the issue could mean paying for damages or covering any debts like rent or fees.
However, if the situation cannot be remedied, then the landlord does not need to provide an opportunity to cure the breach.
Fair Housing Protections
Across the nation, the federal Fair Housing Act prohibits discrimination based on seven protected classes: race, color, religion, national origin, sex, disability, and familial status. In Virginia, tenants are also protected based on source of income, sexual orientation, gender identity, military status, and age.
Security Deposits
There are no laws in Virginia specifying where landlords must keep their tenants’ security deposits or requiring that landlords pay interest on security deposits. However, Virginia does cap the deposit limit at two months’ rent, and you must return your tenants’ deposits within 45 days alongside an itemized list of any deductions.
Additionally, landlords can allow tenants to purchase renter’s insurance instead of paying a security deposit. There are a few terms, though. The insurance provider must be licensed and approved by the Virginia State Corporation Commission, the coverage per claim must not be less than what the landlord would require to be paid in a deposit, and the coverage must remain effective for the full duration of the lease. This law is unique to Virginia, so make sure you read it thoroughly if you don’t plan on charging a traditional security deposit for your rentals.
Conclusion
Virginia has a couple additional terms and conditions that other states don’t, so make sure you study them well. In order to treat your tenants as fairly as possible, you need to be fully informed on what your state expects from you as a landlord, and what is in your legal rights to expect from your tenants. Virginia can be a great state to invest in with an average rent rate at $1,997 per month, but you first need to be fully prepared to take on the responsibility of doing so.