Virginia's New Rent Payment Fee Cap: What Landlords Can (and Can't) Charge After July 1, 2026

Starting July 1, 2026, Virginia landlords cannot charge tenants a rent payment fee that exceeds what the landlord actually pays a third-party processor. HB 1005 and SB 313 close the "convenience fee" markup loophole, and landlords must still offer at least one fee-free way to pay rent.

What does the new law actually say?

Under HB 1005 and its companion SB 313, a landlord subject to the Virginia Residential Landlord and Tenant Act cannot require a tenant to pay any fee to submit periodic rent or other amounts due that exceeds the actual out-of-pocket cost the landlord is charged by a third party to process that payment. In plain terms: if a payment processor charges the landlord $3.00 to run a card transaction, the landlord cannot pass along $12.00 and pocket the difference. The fee has to track the real cost, not a marked-up estimate of it.

Why does this matter now?

Online rent portals became the default way most tenants pay, and processing fees quietly became a profit center for some management companies and landlords. A flat "convenience fee" of $25-$50 per transaction, charged regardless of the processor's actual cost, is exactly the kind of junk fee this law targets. Come July 1, 2026, that pricing model is no longer defensible in Virginia. Landlords who cannot show what a processor actually charged them are exposed if a tenant or the courts ask for documentation.

Does the fee-free payment option requirement still apply?

Yes. The cap on payment fees works alongside the requirement that landlords keep at least one fee-free payment method available to tenants, such as a mailed check or money order. The new rent payment rules also require landlords to accept rent and security deposit payments by check or money order, in addition to whatever electronic options they offer. A landlord cannot get around the fee cap by making every payment channel carry a charge - there must always be a no-cost path to pay rent.

Is every landlord covered by this law?

Yes. The fee cap contains no small-landlord exemption — every landlord covered by the VRLTA must keep payment fees at actual third-party cost and maintain a fee-free option, whether they own one unit or a thousand. The four-or-fewer-units exemption that appears elsewhere in the 2026 payment package is narrow: it only excuses small owners from accepting debit and credit cards. It does not touch this fee cap.

How should landlords document their actual processing cost?

• Pull the merchant statement or processor invoice showing the per-transaction rate charged for ACH, debit, and credit card payments
• Charge tenants that same rate, not a rounded-up or "typical industry" estimate
• If the processor charges different rates for card versus ACH, pass through each rate separately rather than a single blended fee
• Keep records of the fee schedule for as long as the lease term plus any applicable statute of limitations
• Re-check the rate periodically - processor pricing changes, and a fee that was accurate in January may be stale by December

What should tenants watch for on their ledger?

• A payment fee that has not changed in years despite different processors or payment methods being offered
• A single flat fee applied identically to a $10 pet fee payment and an $1,800 rent payment
• A portal that charges a fee on every available payment method, with no free option offered anywhere
• Any fee line item the landlord cannot explain or document when asked

At Century 21 Accent Homes, owners pay one flat $350 monthly management fee with no markups or junk fees, and that same philosophy carries through to tenants - we pass through payment processing at cost, with no hidden convenience markups on your ledger.

Frequently asked questions

Does this law apply to all rental fees, or just payment processing? The processing fee cap specifically addresses fees tied to submitting rent or other amounts due through a payment channel. Other rental fees, such as late fees, application fees, or maintenance-related charges, are governed by separate provisions of the VRLTA and are not automatically affected by this cap.

What happens if a landlord charges more than the actual processing cost? A tenant who is charged an excess fee may have grounds to dispute the charge or seek relief under the VRLTA. Landlords who cannot document their actual third-party cost will have a hard time defending a marked-up fee if challenged, whether by a tenant or a court.

If my landlord owns only three rental units, does any of this apply to me? Yes. The fee cap applies to every VRLTA landlord with no unit-count exemption. A three-unit landlord isn't required to accept debit or credit cards, but any fee they do charge to process a payment is capped at their actual third-party cost, and they must still offer at least one fee-free way to pay rent.

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