Virginia Fee-Free Rent Payment Law 2025: No Collection Fees Unless Landlords Offer a No-Fee Option
by Platuni | 06 Oct, 2026 | 5 mins read
Platuni
06 October, 2026
5 mins read
1. Why this started as a Senate bill after its House companion didn't advance
This requirement traces to Senate Bill 1356; its House companion bill, which would have required landlords to accept several specific payment methods, didn't advance out of a House subcommittee during the same 2025 session.
[Cite: S.B. 1356, 2025 Va. Acts of Assembly, c. 627, amending Va. Code 55.1-1204(J)]
A note on sources: several secondary summaries list this requirement under both a House and Senate bill number, as companion legislation. The House bill, which would have required accepting checks, electronic transfer, debit/credit cards, cash, and money orders, failed to report out of its subcommittee in January 2025. Senate Bill 1356 is what actually passed and became Chapter 627; this article cites that enacted Senate bill specifically, rather than attributing the enacted requirement to both companion bills equally.
2. Why the requirement is structured around "at least one" fee-free method, not a ban on all fees
The statute doesn't prohibit a landlord from ever charging a payment fee; it requires that an alternative, fee-free method also be offered.
[Cite: Va. Code 55.1-1204(J)(1)]
That structure gives a landlord flexibility; a landlord can still offer a convenience-fee-bearing option, say, a credit card payment with a processing charge, as long as a genuinely fee-free method, like a check or a specific online transfer option, is also available to the tenant.
3. Why the written receipt requirement specifically targets cash and money order payments
A landlord has to provide a written receipt upon request when a tenant pays by cash or money order.
[Cite: Va. Code 55.1-1204(J)(1)]
That requirement is specific to those 2 payment types; cash and money order payments don't generate the automatic electronic payment confirmation that a card or bank transfer typically does, so the written receipt requirement fills that documentation gap specifically where it's most needed.
4. Why the 4-or-fewer-unit exception exists for card payments specifically
A landlord owning 4 or fewer rental units isn't required to accept debit or credit card payment under this provision.
[Cite: Va. Code 55.1-1204(J)(2)]
That exception recognizes the added cost and administrative burden of setting up card payment processing can fall disproportionately on a very small landlord; a landlord just under that 4-unit threshold isn't forced to build out card-payment infrastructure simply because this provision exists, though the fee-free-option requirement itself still applies.
5. Why this 2025 requirement became the foundation for the stronger 2026 law
A year later, House Bill 1005 and Senate Bill 313 built directly on this fee-free foundation, adding a mandatory check-and-money-order acceptance requirement and capping any processing fee at the actual third-party cost to process it.
[Cite: Va. Code 55.1-1204(J), as further amended by H.B. 1005/S.B. 313, 2026 Va. Acts of Assembly, cc. 722/723]
A landlord who achieved compliance with this 2025 requirement by mid-2025 needed to revisit that compliance again by July 2026, when the stronger acceptance-and-fee-cap requirements layered on top of this original fee-free-option rule.
6. Why landlords should audit which payment method is actually fee-free in practice
Since the requirement is that at least one method carries no added fee, a landlord should specifically verify that whatever method is being presented as fee-free genuinely carries zero fee, not just a lower fee than the alternatives.
[Cite: Va. Code 55.1-1204(J)(1)]
A landlord offering a "reduced fee" online payment option alongside a higher-fee card option hasn't satisfied this requirement; the statute calls for a method with no added fee at all, not merely a cheaper paid option relative to another.
7. Why documentation of the fee-free option's availability matters
A landlord benefits from clearly documenting, in the lease itself or in a separate payment-methods disclosure, exactly which payment method is offered fee-free.
[Cite: Va. Code 55.1-1204(J)(1)]
A tenant disputing whether a fee-free option was actually available is much easier to address when the lease or a related document explicitly states which method qualifies; a landlord relying on informal or undocumented communication about payment options is in a weaker position if that availability is ever questioned.
8. Why smaller landlords still need to confirm they meet the fee-free requirement despite the card exception
The 4-or-fewer-unit exception applies specifically to debit and credit card acceptance; it doesn't exempt a smaller landlord from the underlying fee-free-option requirement itself.
[Cite: Va. Code 55.1-1204(J)(1)-(2)]
A small landlord who isn't required to accept card payment still has to offer some payment method, a check, a money order, or another option, with no added fee; the card exception narrows one specific obligation without eliminating the broader fee-free requirement.
9. Why this requirement reflects a consumer-protection concern around payment-processing costs
This fee-free-option requirement addresses a tenant's exposure to payment-processing costs that are often set by third-party processors, costs a tenant has limited ability to negotiate or avoid if every available payment method carries a fee.
[Cite: Va. Code 55.1-1204(J)]
A property manager should understand this requirement's purpose that way; it's aimed at making sure a tenant isn't effectively forced to absorb a processing cost simply because every payment channel the landlord offers happens to carry one.
10. Why tracking both the 2025 and 2026 requirements together simplifies compliance
Since the 2026 law built directly on this 2025 fee-free foundation rather than replacing it, a landlord's compliance review should cover both requirements together: the fee-free option itself, and the check-and-money-order acceptance plus actual-cost fee cap added later.
[Cite: Va. Code 55.1-1204(J)]
A landlord treating these as one combined payment-method compliance framework, rather than 2 separate, disconnected rules, is less likely to miss a piece of either requirement when reviewing current payment practices.
11. What property managers should do now
The practical starting point is confirming exactly which current payment method is genuinely fee-free, documenting that clearly in lease materials, and verifying it hasn't quietly picked up a fee through a payment processor's own fee structure.
For any landlord with 4 or fewer units relying on the card-acceptance exception, confirming that whatever non-card method is offered still satisfies the underlying fee-free requirement keeps that smaller operation compliant without needing to build out card-payment infrastructure.
Frequently asked questions
When did Virginia's fee-free payment option requirement take effect?
July 1, 2025, under Senate Bill 1356, 2025 Acts of Assembly Chapter 627, amending Virginia Code Section 55.1-1204(J).
Does this ban landlords from ever charging a payment fee?
No. It requires at least one fee-free method to be available; a landlord can still offer other, fee-bearing payment methods alongside it.
Do all landlords have to accept debit or credit card payment?
No. Landlords owning 4 or fewer rental units are exempt from the debit-and-credit-card acceptance requirement, though the fee-free-option requirement still applies to them.
Is this the same as Virginia's 2026 check-and-money-order law?
No, though they're closely related. This 2025 law established the fee-free-option requirement; the 2026 law added mandatory check-and-money-order acceptance and a cap on processing fees tied to actual cost.
Does a tenant automatically get a receipt for cash payments?
A written receipt is available upon request for cash or money order payments; the landlord isn't necessarily required to provide one automatically under this specific 2025 provision.
What happened to the House companion bill on this topic?
It didn't advance out of a House subcommittee in January 2025; only the Senate bill, SB 1356, passed and became law.
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