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Virginia Security Deposit Interest Calculator & Escrow Rules

Verified Primary Statute: Va. Code Ann. § 55.1-1226 · Last Checked: Spot a law update? Report it
$
Virginia Interest StatusNo Statutory Interest
Net Interest Owed to Tenant:

$0.00

Under Va. Code Ann. § 55.1-1226, landlords in Virginia are not statutorily required to pay interest on security deposits unless expressly promised in the written lease.

Effective Annual Interest Rate:0.00% (Not required by state statute)
Gross Accrued Interest:$0.00
Governing Authority:Va. Code Ann. § 55.1-1226

Virginia Deposit Interest Laws at a Glance (Va. Code Ann. § 55.1-1226)

State law does not mandate interest payments; deposit is returned without interest unless specified in lease.

Statutory Interest Mandate Not required by state statute (lease controls)
Statutory Interest Rate 0.00% (No statutory requirement)
Minimum Tenancy Duration No minimum tenancy required
Escrow Account & Banking Rule Trust account or financial escrow rules apply, but interest accrued belongs to the landlord unless lease states otherwise.
Governing Statute Va. Code Ann. § 55.1-1226 ↗

Related Virginia Rental Compliance Tools

Key Virginia Statutory Nuances & Escrow Case Law

  • No Statutory Interest Mandate: Under Va. Code Ann. § 55.1-1226, residential landlords in Virginia are not required to pay interest on security deposits.
  • Lease Terms Control: A landlord is only obligated to pay interest if a specific clause in the signed rental agreement expressly promises it.
  • Escrow Account Distinction: While state law may regulate where deposit funds are held to prevent commingling, accrued interest is not transferred to the tenant.
Worked Statutory Calculation

Virginia Standard Tenancy Deposit Review

Deposit Amount:

$2,000

Tenancy Months:

24 months

Net Statutory Interest:

$0.00

Under Va. Code Ann. § 55.1-1226, landlords in Virginia are not statutorily required to pay interest on tenant security deposits. On a $2,000 deposit held for 24 months, the statutory interest owed is $0.00 unless the written lease specifically provides otherwise.

Virginia Security Deposit Interest FAQs

Does Virginia law require landlords to pay interest on security deposits?

No. Under Va. Code Ann. § 55.1-1226, there is no state statutory requirement in Virginia for residential landlords to pay interest on security deposits.

Can a tenant in Virginia negotiate deposit interest in the lease?

Yes. While state law does not mandate it, landlords and tenants are free to include a contractual interest provision in their written lease agreement.

Does a landlord have to keep my deposit in a separate bank account in Virginia?

State escrow laws regulate trust accounting and protect funds from commingling, but any interest generated belongs to the landlord under Va. Code Ann. § 55.1-1226.

What happens if a Virginia lease promises interest but the landlord fails to pay?

If interest is explicitly specified in a signed lease agreement, failure to pay constitutes a breach of contract enforceable in Small Claims Court.