Tenant Screening Laws in Virginia: What Self-Managing Landlords Need to Know

Virginia landlords who pull consumer reports on applicants must follow federal FCRA rules on permissible purpose and adverse action notices, cap application fees at $50 (plus actual third-party costs), and apply written screening criteria consistently. Getting any of these wrong can expose a self-managing landlord to real financial and legal liability.

What will Virginia require before you screen an applicant?

Starting July 1, 2027, an amendment to Virginia Code § 55.1-1203 will require you to notify applicants in writing — before collecting any fee or personal information — of several things:

• The amount of any application fee or deposit and whether it is refundable
• The tenant selection criteria that apply to the unit
• Any criteria that will result in automatic denial
• Other criteria that could lead to denial
• The name and address of any consumer reporting agency (CRA) you use
• The applicant's right to a free copy of the consumer report and the right to dispute inaccurate information if you take adverse action

Until that takes effect, most of this list is simply smart practice — and some of it, like the CRA's identity and the applicant's dispute rights, is already required at denial time under the FCRA's adverse-action rules covered below. Publishing your criteria up front also gives you a clean paper trail if a denied applicant later disputes your decision.

What counts as permissible purpose under the FCRA?

A landlord needs a permissible purpose to obtain a consumer report. Evaluating a rental application or lease renewal can provide that purpose. Written permission is one way to document authorization and may be required by your screening provider or other applicable rules; it is not a universal FCRA requirement for every rental report. Follow the provider's requirements and use reports only for the authorized housing decision.

What must an FCRA adverse action notice for rental applicants include?

This is the piece that trips up the most self-managing landlords. If you deny an application, or approve it with less favorable terms such as a larger deposit or a required co-signer, based even partly on a consumer report, the FCRA requires an adverse action notice. The statute technically allows the notice to be oral, written, or electronic — but written is the only form that leaves you proof you complied, so treat written as the standard. The notice must include:

• A statement that adverse action was taken based on information in a consumer report
• The name, address, and phone number of the CRA that supplied the report
• A statement that the CRA did not make the decision and cannot explain the specific reasons for it
• Notice that the applicant can request a free report from the CRA within 60 days after the adverse action
• Notice of the applicant's right to dispute the accuracy or completeness of the report with the CRA

Using a credit score in that decision adds a written or electronic disclosure requirement: provide the score, its source and date, the model's score range, and the principal factors lowering the score in order of importance. A general adverse-action notice alone does not satisfy that additional requirement.

Skipping this notice, even when the denial itself was entirely legal, is a standalone federal violation that can lead to a complaint or lawsuit independent of the underlying decision.

How much can you charge for a rental application in Virginia?

Virginia caps the application fee at $50, exclusive of actual out-of-pocket costs paid to a third party for background, credit, or other pre-occupancy checks. For housing regulated by HUD, the cap drops to $32. These application fee rules exist specifically so screening does not become a profit center, and charging beyond the cap without documenting real third-party costs can require you to refund what was collected if an applicant challenges it.

Can an applicant provide an existing screening report?

An applicant may offer a report they already have, but do not treat another state's portable-report law as a Virginia requirement. Review whether the report can be verified and whether your provider permits its use. Any fees you charge must comply with Virginia's application-fee rules; §55.1-1203 limits the application fee and permits specified actual third-party costs. Do not charge a supposed third-party expense you did not incur.

What can landlords consider, and what crosses the line?

You can generally screen for income relative to rent, verifiable rental history, and credit and eviction records tied to a written, consistently applied standard. Where landlords get into trouble is with criminal history. Criminal-history criteria need a current fair-housing review; an old HUD guidance document should not be presented as the full current rule. HUD withdrew several guidance documents, including its 2022 criminal-records implementation memorandum, effective September 17, 2025. Statutory protections and court remedies still apply. Have counsel review exclusions, relevance to tenancy and individualized circumstances rather than relying on a blanket ban.

The safer approach is a written policy that looks at the nature and severity of the offense, how long ago it happened, and evidence of rehabilitation, applied the same way to every applicant.

How does consistency protect you legally?

Document the criteria, their housing-related purpose and the evidence used for each decision. Consistency does not mean ignoring a reasonable accommodation or a lawful source of funds. For an applicant using a housing subsidy, evaluate any rent-to-income test against the tenant's own payment obligation, not automatically the full contract rent. Our guide to source of income protections explains the Virginia context.

Century 21 Accent Homes uses written screening procedures and adverse-action notices. Ask for the current application criteria and fee disclosures before applying.

Screening compliance at a glance

Frequently asked questions

Do I have to send an adverse action notice if I deny an applicant for a reason unrelated to their credit report?

If the denial was based solely on something outside the consumer report, such as insufficient income you verified independently, the FCRA notice technically is not required. In practice, most denials involve at least some report data, so sending the notice whenever any report was pulled is the safer habit.

Can I charge an applicant more than $50 if my screening vendor charges more than that?

Yes, but only for the documented, actual out-of-pocket cost you pay the third party. The $50 cap applies to your own fee; anything above it must match a real, verifiable vendor cost rather than an estimate.

Is a criminal background check ever completely off-limits in Virginia?

No, but a blanket policy that denies anyone with any criminal record is legally risky under fair housing law. An individualized review tied to the specific offense, its severity, and how much time has passed is the more defensible standard.

This article is for general information and is not legal advice. Consult a Virginia attorney about your specific situation.