Housing (Renters)

Pass-through limitation tax credit; report; penalty. Establishes, for taxable years 2026 through 2030, a tax credit for owners of qualified rental property, as defined by the bill, in an amount equal to a percentage of any qualifying tax increase in real property tax on such qualified rental property. The bill requires a taxpayer to certify that there are limitations on rent increases for any qualified rental property to be eligible for the credit. Under the bill, the Department of Taxation is required to develop guidelines for the administration of the credit, including an application process for the credit. The bill requires the Department to audit no less than five percent of the qualified rental properties for which a credit is claimed in a taxable year. If, in the process of such audit, the Department determines that the owner of a qualified rental property that claimed a credit falsely certified compliance with any of the credit eligibility requirements, the credit is subject to recapture. The bill provides that any owner of a qualified rental property that knowingly makes a false statement in an application for the credit is guilty of a Class 3 misdemeanor. The bill instructs the Department to report on the utilization of the credit by November 1 of each year to the House Committee on Appropriations, House Committee on Finance, and Senate Committee on Finance and Appropriations.

Virginia Residential Landlord and Tenant Act; landlord remedies; noncompliance with rental agreement; payment plan. Requires a landlord who owns more than four rental dwelling units or more than a 10 percent interest in more than four rental dwelling units, before terminating a rental agreement due to nonpayment of rent if the exact amount of rent owed is less than or equal to one month's rent plus any late charges contracted for in the rental agreement and as provided by law, to serve upon such tenant a written notice informing the tenant of the exact amount due and owed and offer the tenant a payment plan under which the tenant must pay the exact amount due and owed in equal monthly installments over a period of the lesser of six months or the time remaining under the rental agreement. The bill prohibits the landlord from charging any additional late fees during the payment plan period in connection with the unpaid rental amount for which the tenant entered into the payment plan so long as the tenant makes timely payments in accordance with the terms of the payment plan. The bill also outlines the remedies a landlord has if a tenant fails to pay the exact amount due and owed or enter into a payment plan within five days of receiving notice or if a tenant enters into a payment plan and after such plan becomes effective fails to pay rent when due or fails to make a payment under the terms of the agreed-upon payment plan. The bill has a delayed effective date of January 1, 2027.

Virginia Residential Landlord and Tenant Act; landlord remedies; tenant's right of redemption; attorney fees. Limits attorney fees to $100 when, prior to the initial court date on an action for unlawful detainer, a tenant makes full payment of all money due for (i) rent as of the date of payment; (ii) any late fees authorized by law and the rental agreement; (iii) any damages; and (iv) court costs.

Unlawful detainer; bifurcation of case; contested rent and damages. Provides that, at an initial hearing on an unlawful detainer, if the defendant contests the amount of rent and damages alleged to be due and owing to the plaintiff, the court shall not bifurcate the unlawful detainer case. Under current law, at the initial hearing, upon request of the plaintiff, the court is required to bifurcate the unlawful detainer case and set a continuance date no later than 120 days from the date of the initial hearing to determine final rent and damages.

Local anti-rent gouging authority; civil penalty. Provides that any locality may by ordinance adopt anti-rent gouging provisions. The bill provides for notice and a public hearing prior to the adoption of such ordinance and specifies that all landlords who are under the ordinance may be required to give at least 90 days' written notice of a rent increase and cannot increase the rent by more than the locality's calculated allowance, not to exceed three percent, and states that such allowance is effective for a 12-month period beginning July 1 each year. The bill requires the locality to publish such allowance on its website by June 1 of each year. Certain facilities, as outlined in the bill, are exempt from such ordinance. The bill also requires a locality adopting an anti-rent gouging ordinance to establish an anti-rent gouging board to establish rules and procedures by which landlords may apply for and be granted exemptions from the rent increase limits set by the ordinance or delegate such duties and functions to an existing local board, department, or agency. The bill also requires the anti-rent gouging board to establish a fair return on investment rent increase exemption to the annual anti-rent gouging allowance where necessary to offset increased operating expenses. Finally, the bill provides that a locality shall establish a civil penalty for failure to comply with the requirements set out in its ordinance.

Virginia Residential Landlord and Tenant Act; civil action for unlawful detainer; termination notice; energy submetering equipment. Provides that no landlord shall file or maintain an action for unlawful detainer against a residential tenant for any alleged lease violation until the landlord has provided the tenant with a proper and effective termination notice and that no notice of termination of tenancy for nonpayment of rent pursuant to the Virginia Residential Landlord and Tenant Act shall be effective unless such notice contains a written statement of charges and payments over the course of the tenancy or the past 12 months, whichever is shorter, and any late charges, attorney fees, costs, and other charges or damages as contracted for in the rental agreement that are due and owing. The bill requires such notice to also include debits and credits incurred by the tenant for energy and utility bills and any additional charges permitted as applicable. The bill also requires the owner of any residential building to maintain adequate records indicating how monthly energy and utility billing fees are calculated and including a history of billing fee payments for each tenant over the duration of the tenancy or the past 12 months, whichever is shorter. Such records shall be made available to the tenant upon request. Finally, the bill removes a provision allowing for the collection of fees when a tenant requests such records. The bill has a delayed effective date of July 1, 2027. This bill is identical to SB 294.

Virginia Residential Landlord and Tenant Act; Manufactured Home Lot Rental Act; pre-tenancy fees. Prohibits a landlord from charging or collecting any fee that is not a pre-tenancy fee as described in the bill and limits the charging or collection of such pre-tenancy fees to either prior to or upon the execution of a rental agreement. The bill requires a landlord to, prior to requesting or collecting any payment or information about a prospective tenant and prior to exhibiting the dwelling unit to a prospective tenant, notify the prospective tenant of any pre-tenancy fees in writing or by posting in a manner accessible to a prospective tenant. The bill provides that no landlord shall charge any fee to a prospective tenant prior to exhibiting the dwelling unit to the prospective tenant, unless the prospective tenant agrees to waive such requirement.The bill allows a landlord to collect a pet deposit, defined in the bill as separate from a security deposit, from a tenant if a pet is occupying the dwelling unit. The bill provides that no security deposit or pet deposit may be applied by the landlord toward (i) the cost of professional services or (ii) the cost of materials and labor performed by the landlord or an employee of the landlord, unless such costs are (a) reasonably necessary to return the premises to the same condition as the condition of the premises at the start of the rental agreement, less reasonable wear and tear, and (b) the landlord provides a receipt reflecting such costs to the tenant. The bill also reduces from two months of rent to one month of rent the maximum security deposit amount and decreases from 45 days to 30 days the amount of time after the termination date of the tenancy or the date the tenant vacates the dwelling unit, whichever occurs last, that the landlord shall provide a written notice to the tenant of the itemized charges deducted from the security deposit and applies the same provisions to pet deposits.The bill also provides that nothing shall be construed to allow an owner, manager, or operator of a residential building to charge a tenant for water, sewer, electrical, natural gas, oil, or other utilities if the utility is supplied directly to the tenant.Finally, the bill applies the provisions of law relating to the rental application process and administrative or renewal fees, as amended by this bill, to the Manufactured Home Lot Rental Act.

Manufactured Home Lot Rental Act; landlord obligations. Requires a landlord to provide a copy of any written rental agreement and the statement of tenant rights and responsibilities within 10 business days of the effective date of the written rental agreement; current law requires a landlord to provide such copies within one month of such effective date. The bill outlines required notice language regarding flood insurance to be included by the landlord in the rental agreement and provides that failures of the landlord to provide notice shall not affect the validity of the rental agreement. The bill applies to rental agreements that are entered into, extended, or renewed on or after July 1, 2026.

Department of Housing and Community Development; Virginia Residential Landlord and Tenant Act; tenant records. Requires a landlord, upon written request by a tenant, to within 10 business days provide such tenant a statement containing all charges and payments incurred by the tenant over the duration of the tenancy or the past 12 months, whichever is shorter. The bill specifies that such statement shall itemize separately rent and the cost of each utility and that the landlord is not obligated to provide such written statement if the landlord owns fewer than four rental dwelling units or less than a 10 percent interest in more than four rental dwelling units, whether individually or through a business entity, in the Commonwealth unless the landlord receives any state or local rental or utility assistance funds on behalf of the tenant. The bill additionally directs the Department of Housing and Community Development to, based on input from relevant stakeholders, develop a standardized printable template for the landlord to use to provide the tenant such written statement. The bill has a delayed effective date of July 1, 2027.

Virginia Residential Landlord and Tenant Act; civil action for unlawful detainer; termination notice; energy submetering equipment. Provides that no landlord shall file or maintain an action for unlawful detainer against a residential tenant for any alleged lease violation until the landlord has provided the tenant with a proper and effective termination notice and that no notice of termination of tenancy for nonpayment of rent pursuant to the Virginia Residential Landlord and Tenant Act shall be effective unless such notice contains a written statement of charges and payments over the course of the tenancy or the past 12 months, whichever is shorter, and any late charges, attorney fees, costs, and other charges or damages as contracted for in the rental agreement that are due and owing. The bill requires such notice to also include debits and credits incurred by the tenant for energy and utility bills and any additional charges permitted as applicable. The bill also requires the owner of any residential building to maintain adequate records indicating how monthly energy and utility billing fees are calculated and including a history of billing fee payments for each tenant over the duration of the tenancy or the past 12 months, whichever is shorter. Such records shall be made available to the tenant upon request. Finally, the bill removes a provision allowing for the collection of fees when a tenant requests such records. The bill has a delayed effective date of July 1, 2027. This bill is identical to HB 1361.