SB 941 — Virginia Residential Landlord and Tenant Act; security deposits.

H.

The landlord shall provide a copy of any written rental agreement and the statement of tenant rights and responsibilities to the tenant within one month of the effective date of the written rental agreement.

The failure of the landlord to deliver such a rental agreement and statement shall not affect the validity of the agreement.

However, the landlord shall not file or maintain an action against the tenant in a court of law for any alleged lease violation until he has provided the tenant with the statement of tenant rights and responsibilities.

I.

No unilateral change in the terms of a rental agreement by a landlord or tenant shall be valid unless (i) notice of the change is given in accordance with the terms of the rental agreement or as otherwise required by law and (ii) both parties consent in writing to the change.

J.

The landlord shall provide the tenant with a written receipt, upon request from the tenant, whenever the tenant pays rent in the form of cash or money order.

§ 55.1-1206.

Landlord may obtain certain insurance for tenant.

A.

A landlord may require as a condition of tenancy that a tenant have damage insurance and pay for the cost of premiums.

As provided in § 55.1-1200, such payments shall not be deemed a security deposit, but shall be rent.

However, as provided in § 55.1-1208, the landlord shall not require a tenant to pay both a security deposit and the cost of damage insurance premiums if the total amount of any security deposit and damage insurance premiums exceeds the amount of two months' one month's periodic rent.

The landlord shall notify a tenant in writing that the tenant has the right to obtain a separate policy from the landlord's policy for damage insurance.

If a tenant elects to obtain a separate policy, the tenant shall submit to the landlord written proof of such coverage and shall maintain such coverage at all times during the term of the rental agreement.

Where a landlord obtains damage insurance coverage on behalf of a tenant, the insurance policy shall provide coverage for the tenant as an insured.

The landlord shall recover from the tenant the actual costs of such insurance coverage and may recover administrative or other fees associated with administration of a damage insurance policy, including a tenant opting out of the insurance coverage provided by the landlord pursuant to this subsection.

If a landlord obtains damage insurance for his tenants, the landlord shall provide to each tenant, prior to execution of the rental agreement, a summary of the insurance policy or certificate evidencing the coverage being provided and upon request of the tenant make available a copy of the insurance policy.

For a tenant that opts out of the landlord's damage insurance program, the landlord shall allow such tenant to either provide their his own damage insurance policy or pay the full security deposit.

B.

A landlord may require as a condition of tenancy that a tenant have renter's insurance as specified in the rental agreement.

A landlord may require a tenant to pay for the cost of premiums for such renter's insurance obtained by the landlord, in order to provide such coverage for the tenant as part of rent or as otherwise provided in this section.

As provided in § 55.1-1200, such payments shall not be deemed a security deposit but shall be rent.

The landlord shall notify a tenant in writing that the tenant has the right to obtain a separate policy from the landlord's policy for renter's insurance.

If a tenant elects to obtain a separate policy, the tenant shall submit to the landlord written proof of such coverage and shall maintain such coverage at all times during the term of the rental agreement.

If a tenant allows his renter's insurance policy required by the rental agreement to lapse for any reason, the landlord may provide any landlord's renter's insurance coverage to such tenant.

The tenant shall be obligated to pay for the cost of premiums for such insurance as rent or as otherwise provided herein until the tenant has provided written documentation to the landlord showing that the tenant has reinstated his own renter's insurance coverage.

C.

If the landlord requires that such premiums be paid to the landlord prior to the commencement of the tenancy, the total amount of all security deposits, insurance premiums for damage insurance, and insurance premiums for renter's insurance shall not exceed the amount of two months' one month's periodic rent.

However, the landlord shall be permitted to add a monthly amount as additional rent to recover additional costs of renter's insurance premiums.

D.

Where a landlord obtains renter's insurance coverage on behalf of a tenant, the insurance policy shall provide coverage for the tenant as an insured.

The landlord shall recover from the tenant the actual costs of such insurance coverage and may recover administrative or other fees associated with the administration of a renter's insurance program, including a tenant opting out of the insurance coverage provided to the tenant pursuant to this subsection.

If a landlord obtains renter's insurance for his tenants, the landlord shall provide to each tenant, prior to execution of the rental agreement, a summary of the insurance policy prepared by the insurer or certificate evidencing the coverage being provided and upon request of the tenant make available a copy of the insurance policy.

Such summary or certificate shall of 5 include a statement regarding whether the insurance policy contains a waiver of subrogation provision.

Any failure of the landlord to provide such summary or certificate, or to make available a copyIof the insurance policy, shall not affect the validity of the rental agreement.

N provide a written notice to the tenant, prior to the execution of the rental agreement, stating that (i) the landlord is not responsible for the tenant's personal property, (ii) the landlord's insurance coverage does not cover the tenant's personal property, and (iii) if the tenant wishes to protect his personaR property, he should obtain renter's insurance.

The notice shall inform the tenant that any such renter's insurance obtained by the tenant does not cover flood damage and advise the tenant to contact the FederalO Emergency Management Agency (FEMA) or visit the websites for FEMA's National Flood Insurance D Program or for the Virginia Department of Conservation and Recreation's Flood Risk Information Any failure of the landlord to provide such notice shall not affect the validity of the rental agreement.

If the tenant requests translation of the notice from the English language to another language, the landlord may assist the tenant in obtaining a translator or refer the tenant to an electronic translatioE service.

In doing so, the landlord shall not be deemed to have breached any of his obligations under this chapter or otherwise become liable for any inaccuracies in the translation.

The landlord shall not charge a fee for such assistance or referral.

E.

Nothing in this section shall be construed to prohibit the landlord from recovering from the tenant, by the landlord relative to the premises, or the tenant's prorated share of a self-insurance program heldd in an escrow account by the landlord, including the landlord's administrative or other fees associated with the administration of such coverages.

The landlord may apply such funds held in escrow to pay claims pursuant to the landlord's self-insurance plan.

§ 55.1-1208.

Prohibited provisions in rental agreements.

S A.

A rental agreement shall not contain provisions that the tenant:

9 1.

Agrees to waive or forgo rights or remedies under this chapter;

1 notice required in the Virginia Condominium Act (§ 55.1-1900 et seq.) or the Virginia Real Estateitation Cooperative Act (§ 55.1-2100 et seq.) or under § 55.1-1410;

3.

Authorizes any person to confess judgment on a claim arising out of the rental agreement;

4.

Agrees to pay the landlord's attorney fees except as provided in this chapter;

5.

Agrees to the exculpation or limitation of any liability of the landlord to the tenant arising under law or to indemnify the landlord for that liability or any associated costs;

6.

Agrees as a condition of tenancy in public housing to a prohibition or restriction of any lawful pos7.

Agrees to the payment of a security deposit, insurance premiums for damage insurance, andlation;

insurance premiums for renter's insurance prior to the commencement of the tenancy that exceed the amount of two months' one month's periodic rent;

or 8.

Agrees to waive remedies or rights under the Servicemembers Civil Relief Act, 50 U.S.C.

§ 3901 et seq., prior to the occurrence of a dispute between landlord and tenant.

Execution of leases shall not be contingent upon the execution of a waiver of rights under the Servicemembers Civil Relief Act;

however, upon the occurrence of any dispute, the landlord and tenant may execute a waiver of such rigB.

Any provision prohibited by subsection A that is included in a rental agreement is unenforceable.

If a landlord brings an action to enforce any such provision, the tenant may recover actual damages sustained by him and reasonable attorney fees.

No landlord may demand or receive a security deposit, however denominated, in an amount or value in excess of two months' one month's periodic rent.

Upon termination of the tenancy or the date the tenant vacatesheld by the dwellinglandlord unit,as whichever occurs last, such security deposit,as whetherprovided itin isthis propertysection, landlord,may inbe orderapplied ofby priority,the landlord solely to (i) the payment of accrued rent, including the reasonable charges for late payment of rent specified in the rental agreement;

The tenantIf maythe requesttenant tois benot present atfor athe finalmove-out inspection of the dwelling unit onduring orsuch immediatelyinspection, beforethe security deposit and any deductions, damages, and charges shall be itemized by the landlord in a written notice given to the tenant, together with any amount due to the teTant, within 45 days after the termination date of the tenancy or the date the tenant vacates the dwelling unit.unit, whichever occurs last.

IfAs the tenant is present for such final inspection and, based upon that inspection, there are no landlord as of the date of the inspection,termination theof landlord shall refund the entiretytenancy ofor the securitydate deposit to SB941 4 of 5 the tenant electronically,Eacates in-person,the ordwelling byunit, mailwhichever atoccurs alast, forwardingthe addresstenant providedshall bybe therequired tenantto withindeliver fivepossession days of the datedwelling ofunit to the inspection.landlord.

If the tenanttermination date is notprior presentto for the finalexpiration inspection of the dwellingrental unit,agreement theor securityany deposittenant andshall anybe deductions,liable damages,for andactual chargesdamages shallpursuant beto itemized§ by55.1-1251, in which case, the landlord inshall agive written notice givenof tosecurity thedeposit tenant,disposition togetherwithin withthe any45-day amountperiod duebut tomay theretain tenant,any withinsecurity 45balance daysto afterapply theagainst terminationany datefinancial obligations of the tenancytenant orto the datelandlord thepursuant tenantto vacatesthUs thechapter dwellingor unit,the whicheverrental occursagreement. last.

AsIf of the datetenant offails theto terminationvacate of the tenancydwelling orunit theas dateof the tenanttermination vacatesBf the dwellingtenancy, unit, whichever occurs last, the tenantlandlord shallmay befile requiredan tounlawful deliverdetainer possessionaction ofpursuant the dwelling unit to the§ landlord.8.01-126.

Ifwriting theby terminationeach date is prior to the expiration of the rentaltenants, agreementdisposition or any renewal thereof, or the tenant has not given proper notice of termination of the rentalsecurity agreement,deposit the tenant shall be liablemade forwith actualone damagescheck pursuantbeing topayable § 55.1-1251, in which case, the landlord shall give written notice of security deposit disposition within the 45-day period but may retain any security balance to applyall againstsuch anytenants financialand obligationssent of the tenant to thea landlordforwarding pursuantaddress toprovided thisby chapterone orof the rentaltenants. agreement.

IfThe the: tenant fails to vacate the dwelling unit as of the termination of the tenancy, the landlord may file an unlawful detainer action pursuant to § 8.01-126.

B.36 landlord shall make the security deposit disposition within the 45-day time period required by subsection 37 A, but if no forwarding address is provided to the landlord, the landlord may continue to hold such 38 security deposit in escrow.

WhereIf therea is more than one tenant subjectfails to provide a rentalforwarding agreement,address unlessto otherwisethe agreedlandlord totT inenable writingthe by39 eachlandlord ofto themake tenants,a dispositionrefund of the security depositdeposit, shallupon bethe madeexpiration withof one checkyear beingfrom payablethe todatU allof suchthe tenantsproperty andon sent to a forwardingform addressprescribed provided by onethe ofadministrator that includes the tenants.name;

The landlord shall make the security deposit disposition within the 45-day time period required by subsection A, but if no forwarding address is provided to the landlord, the landlord may continue to hold such security deposit in escrow.

If a tenant fails to provide a forwarding address to the landlord to enable the landlord to make a refund of the security deposit, upon the expiration of one year from the date of the end of the 45-day time period, the landlord may remit such sum to the State Treasurer as unclaimed property on a form prescribed by the administrator that includes the name;

If the landlord or managing agent is a real estate licensee, compliance with this subsection shall be deemed compliance withwitE § 54.1-2108 and corresponding regulations of the Real Estate Board.

Nothing in this section shall be construed by a court of law or otherwise as entitling the tenant, upon the termination of the tenancy, to an immediate credit against the tenant's delinquent rent account in the amount of the security deposit.

The landlord shall apply the security deposit in accordance withwitht this section within the 45-day time period required by subsection A.

However, provided that the landlord has given prior written notice in accordance with this section, the landlord may withhold a reasonable portion of the security deposit to cover an amount of the balance due on the water, sewer, or other utility account that is an obligation of the tenant to a third-party provider under the rental agreementSgreement for the dwelling unit, and upon payment of such obligations the landlord shall provide written confirmationconf9rmation to the tenant within 10 days, along with payment to the tenant of any balance otherwise due to the tenant.

SB941S1 2 of 3 The tenant may provide the landlord with written confirmation of the payment of the final water, sewer, or other utility bill for the dwelling unit, in which case the landlord shall refund the security deposit, unless there are other authorized deductions, within the 45-day period required by subsection A.

In the event that damages to the premises exceed the amount of the security deposit and of 5 require the services of a third-party contractor, the landlord shall give written notice to the tenant prescribedadvising inhim thisof subsection,that thefact landlordwithin shallthe have45-day an additional 15-day period torequired provideby anassubsection itemizationA. of the damages and the cost of repair.

If notice is given as prescribed in this subsection, the landlord shall have an additional 15-day period to provide an itemization of the damages and the cost of repair.

The holder of theTthe landlord's interest in the premises at the time of the termination of the tenancy, regardless of how the interest is acquired or transferred, is bound by this section and shall be required to return aRyany security deposit received by the original landlord that is duly owed to the tenant, whether or not such security deposit is transferred with the landlord's interest by law or equity, regardless of any contractualritycontractual agreements between the original landlord and his successors in interest.

D 1.

Maintain and itemize records for each tenant of all deductions from security deposits proUidedprovided for under this section that the landlord has made by reason of a tenant's noncompliance with § 55.1C1227,55.1-1227, or for any other reason set out in this section, during the preceding two years;

and any2. time during normal business hours.d agent or attorney to inspect such tenant's records of dEductions at G.

Permit a tenant or his authorized agent or attorney to inspect such tenant's records of deductions at any time during normal business hours.

G.

If the tenant desires to be present when the landlord makes the inspection, he shall, in writing, so advise the landlord, who in turn shall notify the tenant of the date and time of the inspection, which must be made within 72 hours of delivery ofotifyof the possession.

If additional damages are discovered by the landlord after the security deposit disposition has been made, nothing in thiSthis section shall be construed to preclude the landlord from recovery of such damages against the tenant, p9ovided,provided, however, that the tenant may present into evidence a copy of the move-out report to support the1tenant'sthe posH.tenant's position that such additional damages did not exist at the time of the move-out inspection.

If the tenant is present for the move-out inspection, there are no damages to the dwelling unit beyond normal wear and tear based upon such inspection, and the tenant does not owe any rent to the landlord as of the date of such move-out inspection, the landlord shall refund the entirety of the security deposit to the tenant within 15 business days of the date of such move-out inspection.

Such refund shall be returned to the tenant electronically, in person, or by mail at a forwarding address provided by the tenant.

H.

The provider of damage insurance is licensed or approved by the Virginia State Corporation Com2.Commission;

The2. coverage is effective upon the payment of the first premium and remains effective for the entire lease term;

3.The coverage is effective upon the payment of the first premium and remains effective for the of 3 ent3.

4.5.

The provider of damage insurance agreesshall tonotify approvethe orlandlord denywithin payment10 ofdays aif claim;the damage policy lapJ.

andA lapsestenant orwho isinitially canceled.damageopts to provide damage insurance shallin notifylieu of a security deposit may, at any time without consent of the landlord, opt to pay the full security deposit to the landlord withinin 10lieu daysof iftenant opts to pay the damagefull policyamount J.of the security deposit pursuant to this subsection.ase in the event a S E N A T E S U B S T I T U T E B 1

A tenant who initially opts to provide damage insurance in lieu of a security deposit may, at any time without consent of the landlord, opt to pay the full security deposit to the landlord in lieu of maintaining a damage insurance policy.

The landlord shall not alter the terms of the lease in the event a tenant opts to pay the full amount of the security deposit pursuant to this subsection.