Managing a rental property in Richmond and the surrounding counties can be financially rewarding, but even experienced rental property owners routinely fall into costly traps. These mistakes rarely stem from carelessness. More often, they result from informal processes, outdated assumptions, or reliance on experience rather than documented systems.
In Virginia’s current rental environment, small missteps carry disproportionate risk. Regulatory enforcement is stricter, Fair Housing scrutiny is broader, and rental fraud in Richmond has become more sophisticated. Actions that once went unnoticed—improper notices, informal agreements, inconsistent screening—now trigger disputes, delays, and liability.
This guide outlines the seven most common and expensive mistakes Virginia rental property owners make, explains why they occur, and shows how they can be avoided through structured, compliance-focused processes.
Table of Contents
Why rental property owners make costly mistakes
Mistake #1: Serving the wrong notices
Mistake #2: Mishandling security deposits
Mistake #3: Relying on verbal agreements
Mistake #4: Retaliation risks
Mistake #5: Fair Housing slip-ups
Mistake #6: Skipping proper resident screening
Mistake #7: Neglecting documentation and follow-through
Frequently asked questions
Practical next steps for Virginia rental property owners
Why Rental Property Owners Make Costly Mistakes
Most costly rental property mistakes are not intentional. They arise when owners rely on informal systems, memory, or prior experience rather than standardized processes.
As rental markets tighten and compliance expectations rise, experience alone is no longer sufficient protection. Courts, regulators, and insurers increasingly evaluate process consistency and documentation, not effort or intent. When systems are informal, risk compounds quietly until a dispute forces scrutiny.
Mistake #1. Serving the Wrong Notices
Issuing the wrong notice—or serving it incorrectly—is one of the fastest ways to derail an eviction or lease enforcement action in Virginia. Virginia eviction and lease enforcement requirements are governed by statute, and courts evaluate compliance based on whether notice content, timing, and service meet the requirements of the Virginia Residential Landlord and Tenant Act (VRLTA).
Common pitfalls
Using incorrect notice periods
Relying on outdated templates
Failing to document delivery
Consequences
Cases dismissed by the court
Delayed enforcement
Additional months of lost rent
How to avoid it
Use VRLTA-compliant notice templates and document delivery consistently through verifiable methods.
Mistake #2. Mishandling Security Deposits
Security deposit handling is heavily regulated in Virginia and frequently misunderstood. Virginia law strictly enforces the 45-day return and accounting requirement outlined in Virginia Code § 55.1-1226, and failure to comply can eliminate otherwise valid deductions.
Common pitfalls
Missing the 45-day return deadline
Failing to provide itemized deductions
Charging prohibited expenses
Consequences
Loss of deduction rights
Court-ordered penalties
Attorney fees
How to avoid it
Document move-in and move-out conditions thoroughly and follow statutory timelines without exception.
Mistake #3: Relying on Verbal Agreements
Verbal agreements create ambiguity that rarely survives disputes.
Common pitfalls
Informal rent accommodations
Verbal approvals for pets or occupants
Undocumented maintenance promises
Consequences
“He said, she said” disputes
Unenforceable terms
Eroded trust
How to avoid it
Put all agreements in writing using dated, signed addenda.
Mistake #4. Retaliation Risks
Virginia law prohibits retaliation against residents who exercise legal rights.
Common pitfalls
Rent increases or non-renewals immediately following complaints
Sudden enforcement escalation
Consequences
Voided notices
Fines and penalties
Reputational damage
How to avoid it
Document neutral reasons for enforcement decisions and apply standards consistently.
Mistake #5: Fair Housing Slip-Ups
Fair Housing compliance is mandatory, and violations often occur unintentionally. Fair Housing enforcement evaluates outcomes and patterns rather than intent, consistent with federal guidance under the Fair Housing Act.
Common pitfalls
Subjective or exclusionary advertising language
Inconsistent screening criteria
Informal guidance that appears to steer prospects
Consequences
Federal and state investigations
Legal costs
Long-term reputational harm
How to avoid it
Standardize screening and marketing practices and document decisions.
Mistake #6: Skipping Proper Resident Screening
Vacancy pressure often leads owners to shortcut screening.
Common pitfalls
Incomplete income verification
Skipped rental history checks
Inconsistent criteria
Consequences
Nonpayment
Evictions
Increased exposure to rental fraud in Richmond
How to avoid it
Apply documented, Fair Housing-compliant screening standards consistently.
Mistake #7: Neglecting Documentation and Follow-Through
Poor documentation amplifies every other mistake.
Common pitfalls
Missing maintenance logs
Incomplete inspections
Fragmented communication records
Consequences
Weak enforcement credibility
Insurance complications
Increased liability
How to avoid it
Maintain centralized, contemporaneous records across all aspects of management.
Frequently Asked Questions
Are these mistakes common among experienced landlords?
Yes. Many occur when owners rely on experience without updating systems to reflect current law and market conditions.
Can these mistakes increase exposure to rental fraud?
Yes. Weak screening, informal agreements, and poor documentation create opportunities for misrepresentation and fraud.
Do these mistakes occur in professionally managed properties?
They are far more common in self-managed properties. Professional management introduces standardized controls.
Is it too late to fix these issues after they happen?
Not always. Improved documentation and consistent enforcement can mitigate future risk.
Practical Next Steps for Virginia Rental Property Owners
Most costly rental property mistakes are not intentional. They stem from informal systems and inconsistent compliance practices.
PMI James River works with Virginia rental property owners to apply structured screening, documentation, and management processes designed to reduce legal and operational risk. Information about those processes is available for owners evaluating whether their current approach leaves avoidable exposure.
