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Virginia Bill Would Change Security Deposit Laws

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Virginia H.B. 2033

This bill updates landlord-tenant law related to residential tenancies. Under previous law landlords were required to only “make a reasonable effort” to notify the tenant that they have a right to be present during a landlord’s inspection of the residence. This new bill would require landlords to provide an itemized security deposit disposition outlining all deductions, damages, charges and payments for the previous 12 months. A notice of the amount due must be delivered within 45 days after the tenancy has been terminated.

In the event there are multiple tenants to a residency, security deposits should be made with one check payable to all tenants and delivered to the tenants’ forwarding address. If no forwarding address is provided, the funds should remain in escrow for 1 year from the end of the 45-day time period following tenancy termination, at which point funds shall be remitted to the state. With H.B. 2033 unclaimed security deposits will no longer be escheated to the Virginia Housing Trust Fund, but rather be escheated to the State Treasurer and ultimately credited to the State Literary Fund. Following the escheatment of a security deposit, the landlord has no further liability to tenants.

Stay tuned to our blog for further developments and contact us with any questions about unclaimed property compliance.

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Tagged: virginia unclaimed property, virginia escheat, security deposits, tenant deposits