Virginia Rent Payment Plans 2027: Larger Landlords Must Offer a Written Plan Before Terminating for Arrears

Governor approval came in 2026, but the law doesn't actually take effect until July 1, 2027.

[Cite: H.B. 95, 2026 Va. Acts of Assembly, c. 1105, amending Va. Code 55.1-1245]

A note on sources: several secondary compliance guides list a January 1, 2027 effective date for this requirement. The Code of Virginia's own published text, and the legislature's own bill-tracking record of the Governor's approval, both show July 1, 2027 as the effective date. This article follows the primary legislative record.

That extended runway gives larger landlords real lead time to build payment-plan procedures and staff training well before the requirement actually becomes enforceable, rather than scrambling to comply on short notice.

The requirement applies to a landlord owning more than 4 units directly, or holding more than a 10% interest in more than 4 units.

[Cite: Va. Code 55.1-1245, as amended by H.B. 95]

That ownership-interest language closes a potential gap; a landlord structured across multiple smaller holding entities, each owning only a few units individually, can still fall within this requirement if their combined interest across those entities crosses the 10% threshold in more than 4 units total.

This requirement only applies when the tenant's unpaid rent, plus any lawful late charges, doesn't exceed one month's rent.

[Cite: Va. Code 55.1-1245]

That cap targets a specific, narrower scenario: a tenant who's fallen behind by a relatively modest, recoverable amount, rather than a tenant who's accumulated months of unpaid rent. A larger landlord facing a tenant with several months of arrears isn't required to offer this specific payment plan for that larger balance.

The payment plan has to span the lesser of 6 months or the time remaining under the rental agreement.

[Cite: Va. Code 55.1-1245]

That "lesser of" structure prevents the payment plan from extending past the lease term itself; a tenant with only 3 months left on their lease gets a 3-month plan, not a full 6-month plan that would outlast the current rental agreement.

A tenant can repay the full remaining balance at any point during the plan without penalty.

[Cite: Va. Code 55.1-1245]

That flexibility benefits a tenant whose financial situation improves before the plan's scheduled end, letting them clear the balance and move on without being locked into the full installment schedule; it also benefits a landlord by allowing faster full recovery when a tenant is able to pay it off early.

A landlord can't charge additional late fees during the payment plan period as long as the tenant makes timely payments under the plan's schedule.

[Cite: Va. Code 55.1-1245]

That restriction means a landlord has to track plan payments separately from standard rent due dates; a tenant making timely installment payments under the plan shouldn't also be hit with ordinary late fees that would otherwise apply to a standard missed rent payment.

A tenant is only entitled to one of these payment plans per lease term.

[Cite: Va. Code 55.1-1245]

That limit means a landlord doesn't have to offer a new payment plan every time the same tenant falls behind again within the same lease term; once a tenant has used this specific remedy, a landlord's standard remedies for a subsequent arrears situation within that same term aren't constrained by this requirement a second time.

This provision amends Section 55.1-1245, which falls within the Virginia Residential Landlord and Tenant Act's article on landlord remedies.

[Cite: Va. Code 55.1-1245]

A landlord should understand this as a precondition layered onto the existing remedy process for nonpayment, specifically for larger landlords and specifically for arrears within this capped amount, rather than a wholesale replacement of the landlord's broader remedies for unpaid rent.

This payment-plan requirement arrives alongside a separate 2026 change extending Virginia's pay-or-quit notice period from 5 to 14 days.

[Cite: Va. Code 55.1-1245; H.B. 15/S.B. 48, 2026 Acts, cc. 353/354]

A larger landlord navigating a nonpayment situation after July 2027 needs to track both requirements together: the extended notice period before termination proceedings can begin, and this payment-plan offer for arrears within the one-month threshold.

Since this is now a required step before termination for qualifying arrears, a landlord benefits from keeping clear, dated records showing the payment plan was actually offered, on what terms, and whether the tenant accepted or declined it.

[Cite: Va. Code 55.1-1245]

A landlord who later needs to proceed with termination after a tenant defaults on, or never accepted, the payment plan is in a much stronger position with documented proof the offer was made and met the statute's specific terms.

The practical starting point is confirming which properties in a portfolio actually cross the more-than-4-unit or 10%-interest threshold, since this requirement doesn't apply uniformly across every holding.

Building a standard payment-plan offer template and staff training well before July 2027 keeps a larger landlord from having to improvise this process the first time a qualifying arrears situation actually arises.