New Proposed Law Limits What Landlords Can Charge Tenants in Virginia

The Virginia General Assembly is responsible for most changes in Virginia law. Every year, new laws or amended laws are proposed which can impact any number of areas ranging from tenants rights to filing requirements for landlords. New laws are proposed frequently that can have major impacts on the bottom line for both landlords and tenants. A good landlord should stay updated on these changes to make sure their lease agreement are fully compliant with Virginia law.

Senator Ebbin and Delegate Krizek Propose Limits on Fees. On February 9, 2024, new amendments were proposed to the Virginia Residential Landlord/Tenant Act that limits the types of fees and costs of business a landlord can pass on to their tenant in the lease agreement. The new amendments have proposed two new limitations on fee shifting to tenants that every landlord should be aware of to make sure their lease agreement is compliant:

1) Restrictions on payments for maintenance and repair. The new law proposes that landlords cannot build into the lease agreement an automatic provision that requires a tenant to pay for any maintenance or repair unless the damage was a result of the tenant’s actions. For example, some landlords were previously requiring tenants to repair rain gutters and other fixtures even if the tenant was not the one responsible for them breaking. Now, the only way a landlord can require a tenant to pay for routine repairs is if the tenant damaged the property.

This would have the impact of preventing landlords from shifting the costs of repairs. There are any number of reasons why a landlord or a tenant may want to shift the costs of maintenance and repair on to the tenant and reasons why a tenant may want to agree to the provision if it results in a lower base rent. For example, maybe the prospective tenant is a contractor and is handy with building repairs. Maybe the landlord wants to reduce their rent in exchange for them being responsible for paying for maintenance and repair materials and have the tenant make the repairs themselves to save money. In consideration, the tenant may want to have a reduced rent.

However, the General Assembly has decided this kind of contractual relationship is not acceptable.

2) Restrictions on fees associated with periodic payments. The second restriction being proposed is that a landlord may no longer add fees to the lease agreement associated with periodic rent payments. For example, if a landlord and a tenant wanted to agree on transferring money by a third-party payment processor every week, the landlord would be solely responsible for the transaction costs associated with this. A landlord would not be able to ask for reimbursement from the tenant for the opportunity to use third-party payment processors on a periodic basis. Any business person can tell you that these kinds of periodic payment processors have additional built in costs.

If you are a landlord or a tenant, make sure you stay fully aware of all the new laws that may pass. Although these modifications have not passed yet, they may have implications down the road and you should be prepared to modify your existing lease agreements to compensate.