The FAAR Public Policy Committee reviewed several legislative requests over the past few months and with approval of the FAAR Board of Directors, has submitted one of those issues to the Virginia Realtors®. The state association will review all submitted legislative requests from across the state at a July 22nd meeting. Accepted issues will be included in the 2020 Statewide Legislative Package that is submitted to the General Assembly. Read below for FAAR’s submission.
Virginia Landlord Tenant Act Revision
Background: Prospective tenants looking to secure a rental unit are often required to pay an application fee and an application deposit when submitting their application. This application deposit turns into the security deposit if accepted, and can be several thousand dollars. For tenants who secure a money order for the application deposit and then are not approved for the unit, this often presents a significant challenge to receive those funds back. The current law states that funds must be returned within 20 days, or 10 days if the deposit is paid by cash, certified check, cashier’s check, or postal money order. Many tenants cannot afford to apply to another unit until they receive that application deposit money back from the property management company.
Request; FAAR requests that the General Assembly amend the VRLTA to require that the application deposit not be collected until application approval and give tenants two business days to pay.