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  1. #1
    Join Date
    Sep 2019
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    Default Is It Legal to Include Non-Refundable Deposits in a Residential Lease

    My question involves landlord-tenant law in the State of Virginia:

    Is it legal in the state of Virginia to include a non-refundable pet deposit? Should it be stated as a pet fee? Also is it illegal to include a non-refundable security deposit in a lease? By definition from the Virginia Residential Landlord Tenant Act, the definition of security deposit is: any refundable deposit of money that is furnished by a tenant to a landlord to secure the performance of the terms and conditions of a rental agreement, as a security for damages to the leased premises, or as a pet deposit. However, such money shall be deemed an application deposit until the commencement date of the rental agreement. Security deposit shall not include a damage insurance policy or renter's insurance policy as those terms are defined in § 55-248.7:2 purchased by a landlord to provide coverage for a tenant.

  2. #2
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    Sep 2010
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    Default Re: Is It Legal to Include Non-Refundable Deposits in a Residential Lease

    Depends on how much. The landlord can charge up to $50 in non-refundable fees for most rentals.

    What they call it isn't so much of an issue as long as it's $50 or less and clearly designated as non-refundable rather than being a security deposit.

  3. #3
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    Sep 2019
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    Default Re: Is It Legal to Include Non-Refundable Deposits in a Residential Lease

    It's thousands of dollars for each? Each are separate, one for a non-refundable pet deposit and one for a non-refundable security deposit. Shouldn't they be called something different? Using the word deposit seems to make the lease illegal or invalid? Not sure where to look for the legal precedent.

    Also, it's a single family house and not an apartment if that has any bearing.

  4. #4
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    Default Re: Is It Legal to Include Non-Refundable Deposits in a Residential Lease

    That's illegal in Virginia. First, the non-refundable deposit may not exceed $50.
    There's no such thing as a "non-refundable security deposit."
    Security deposits are capped at two months rent.

  5. #5
    Join Date
    Jan 2008
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    252

    Default Re: Is It Legal to Include Non-Refundable Deposits in a Residential Lease

    Quote Quoting mom1965
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    Also, it's a single family house and not an apartment if that has any bearing.
    The VRLTA covers most residential rental agreements. Several types of properties are exempt from the Act, including single-family rental houses where the landlord owns and rents ten or fewer such houses.

  6. #6
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    Default Re: Is It Legal to Include Non-Refundable Deposits in a Residential Lease

    The LL didn't state the exemption in the lease so it the lease is not exempt from the Act.

  7. #7
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    Jan 2008
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    252

    Default Re: Is It Legal to Include Non-Refundable Deposits in a Residential Lease

    Quote Quoting mom1965
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    The LL didn't state the exemption in the lease so it the lease is not exempt from the Act.

    Curious....I can't find the law that requires the landlord to claim the exemption within the lease. Can you cite the law for me.

  8. #8
    Join Date
    Sep 2019
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    Default Re: Is It Legal to Include Non-Refundable Deposits in a Residential Lease

    Page 3 of the VRLTA of 2018. "The VRLTA covers most residential rental agreements. Several types of properties are exempt from the Act, including single-family rental houses where the landlord owns and rents two or fewer such houses. Effective July 1, 2017, this exemption only applies should the landlord state the exemption in the rental agreement provided to the tenant. Landlords and tenants not covered by the VRLTA may be entitled to different protections and certain protections and benefits discussed in this handbook may not be available." Not sure is this applies... We plan to get an attorney, but still trying to figure things out first.

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