Most Richmond-area landlords have never heard of a rental inspection district until a letter arrives from the building department. Then it becomes urgent, and it is usually accompanied by a fee schedule and a deadline.
Virginia’s rental inspection framework is more constrained — and more favorable to owners — than the letter typically conveys. It also contains an exemption that a lot of owners qualify for and never claim.
Quick Answer
Under Va. Code § 36-105.1:1, Virginia localities may adopt ordinances to inspect residential rental units, but only within designated rental inspection districts based on specific findings — and the statute expressly prohibits locality-wide districts. Units passing inspection with no violations get an exemption for a minimum of four years, and localities may exempt units managed by a licensed property manager or qualifying managing agent entirely.
What a Rental Inspection District Is
A locality that wants to inspect rental housing cannot simply decide to inspect all of it. The statute requires the governing body to establish a district based on findings that:
- There is a need to protect the health, safety, and welfare of occupants inside the designated area;
- The residential rental units within it are either blighted or in the process of deteriorating, or are in need of inspection to prevent deterioration, taking into account the number, age, and condition of the units; and
- Inspection is necessary to maintain safe, decent, and sanitary living conditions there.
Critically, the statute states that nothing in it authorizes a locality-wide rental inspection district. The governing body must limit boundaries to areas actually meeting the criteria. A locality cannot use this authority as a blanket registration scheme for every rental in its jurisdiction.
Individual properties outside a district can be brought in, but only on a separate finding for that specific unit — that it is blighted, deteriorating, or shows evidence of Building Code violations affecting safe and sanitary conditions.
How a District Gets Adopted
The process gives owners notice and an opportunity to be heard:
- The locality must hold a public hearing before adopting an ordinance or establishing or amending a district.
- Notice must be published once a week for two successive weeks in a newspaper circulating in the locality.
- After adoption, the building department must make reasonable efforts to notify owners or their managing agents, and to provide information explaining the ordinance and the owner’s responsibilities.
If you own rental property in an area where deterioration is a live policy concern, this is worth watching. The public hearing is the point at which owner input matters.
The Notification Requirement — and Its Limits
An ordinance may require owners in a district to notify the building department in writing that a unit is used as a rental. The statute constrains this significantly:
- The ordinance may not include a registration requirement or a fee of any kind associated with that written notification.
- Owners must be given at least 60 days after adoption to provide the notification.
- There is no penalty at all unless the building department first provides personal or written notice to the owner.
- The sole penalty for willful failure to comply with the notification requirement is a civil penalty of up to $50.
That last point is worth knowing precisely, because the notification requirement is sometimes presented as carrying more weight than the statute gives it. Comply — it is a form and it costs nothing — but understand the actual exposure.
How Often They Can Inspect
Once a district exists, the building department may inspect units to determine whether they are rentals and whether they comply with Building Code provisions affecting safe, decent, and sanitary conditions.
Frequency is capped. After the initial inspection, the building department may inspect a unit in the district no more than once each calendar year — except for follow-up inspections, which may continue until identified violations are corrected.
Multifamily Sampling
A useful provision for owners of larger properties. Where a multifamily development has more than 10 dwelling units, initial and periodic inspections cover only a sample of not less than two and not more than 10 percent of the units across the development, and the department may not charge an inspection fee for more than 10 units.
If violations affecting safe and sanitary conditions turn up in the sample, the department may then inspect as many units as needed to enforce the code, with fees charged per unit inspected.
The Exemptions — This Is the Part Owners Miss
Pass an inspection, get four years
On an initial or periodic inspection, if there are no violations of the Building Code affecting safe, decent, and sanitary living conditions, the building department shall provide the owner an exemption from the rental inspection ordinance for a minimum of four years.
That is a mandatory exemption, not a discretionary one. Keeping the property in genuinely good condition is not just good practice — it buys you four years out of the program.
A unit issued a certificate of occupancy within the last four years gets an exemption for a minimum of four years from the date of issuance. Newly built or substantially rebuilt properties should not be inspected at all during that window.
Note the conditions: an exemption may be revoked if the unit falls into violation during the period, and on sale of the property the department may perform a periodic inspection.
Professional management exemption
This is the provision most owners have never read. A local governing body may exempt a residential rental unit otherwise subject to the ordinance where the unit is managed by:
- Any person licensed under § 54.1-2106.1;
- Any property manager or managing agent of a landlord as defined in § 55.1-1200;
- Any owner of a publicly traded entity managing its own multifamily rental units; or
- Any owner or managing agent who, in the local governing body’s determination, has achieved a satisfactory designation as a professional property manager.
Whether this exemption is available depends on whether your locality adopted it — the statute permits it rather than requiring it. But if your property sits in a rental inspection district and is professionally managed, it is worth asking the building department directly whether the exemption applies. Owners frequently pay inspection fees they were entitled to avoid.
What Inspectors Actually Look For
Inspections address Building Code provisions affecting safe, decent, and sanitary living conditions — not cosmetics. In practice this typically means:
- Working smoke alarms and, where required, carbon monoxide alarms
- Safe electrical systems — no exposed wiring, overloaded panels, or improper repairs
- Functioning heating
- Working plumbing with hot and cold water and no significant leaks
- Structural soundness of floors, stairs, railings, and porches
- Weathertight roof, windows, and exterior
- Egress — usable exits and compliant bedroom escape windows
- Functioning locks on entry doors
- Absence of significant infestation, and no evidence of sewage or water intrusion
Very little of this should be new to an owner running a property properly. The most common findings are smoke alarms, deteriorated exterior wood and porches, electrical issues in older homes, and moisture problems — all things worth catching yourself. Our property inspection checklist and seasonal maintenance checklist cover the ground.
Certificates of Occupancy
Distinct from rental inspections but related. A certificate of occupancy is issued by the building department confirming a structure complies with code and may be occupied — typically after new construction, substantial renovation, or a change of use.
Two practical points for rental owners:
- A CO issued within the last four years triggers the statutory exemption described above.
- Converting a property’s use — a single-family home into multiple units, an accessory structure into a dwelling, a basement into a separate unit — generally requires permits and may require a new CO. Doing this without approval creates a genuine problem at inspection, sale, and insurance claim. See our guide to accessory dwelling units.
What This Does Not Change
The statute is explicit: its provisions do not alter the rights and obligations of landlords and tenants under the Virginia Residential Landlord and Tenant Act. Your obligations on habitability, security deposits, notice, and access are unchanged.
It also does not alter the building department’s underlying duties to enforce the Building Code generally. A locality can still enforce code outside a rental inspection district through its ordinary authority.
Practical Steps
- Find out whether your property is in a district. Ask the building department for the locality — City of Richmond, Henrico, Chesterfield, or Hanover.
- Comply with any notification requirement — it is free and cannot carry a registration fee.
- Ask whether the professional management exemption has been adopted in your locality.
- Prepare before the inspection. Test alarms, check egress windows, address deteriorated exterior wood, and fix electrical and plumbing issues. Passing cleanly earns a four-year exemption.
- Attend the inspection if you can, so you hear findings directly.
- Get the exemption in writing and calendar its expiry.
- Correct follow-up items promptly — follow-up inspections continue until compliance is achieved.
What the Statute Permits and Prohibits
| Localities may | Localities may not |
|---|---|
| Establish rental inspection districts based on required findings | Create a locality-wide rental inspection district |
| Require written notification that a unit is rented | Impose a registration requirement or fee for that notification |
| Inspect units in a district for Building Code compliance | Inspect more than once per calendar year after the initial inspection |
| Conduct follow-up inspections until violations are corrected | Inspect a unit holding a valid exemption |
| Charge inspection fees under a published schedule | Charge for more than 10 units when sampling a large multifamily development |
| Bring an individual unit outside a district into the program on specific findings | Do so without making those findings for that unit |
| Exempt professionally managed units | Alter landlord and tenant rights under the VRLTA |
The pattern is a deliberate balance: localities get a real tool for addressing deteriorating rental housing, and owners get meaningful limits on how broadly and how often it can be applied.
Frequently Asked Questions
Can my locality inspect all rental properties?
No. Section 36-105.1:1 requires inspections to occur within designated rental inspection districts based on specific findings, and expressly does not authorize locality-wide districts.
How often can a rental be inspected?
After the initial inspection, no more than once per calendar year, except for follow-up inspections until violations are corrected.
What happens if my property passes inspection?
The building department shall grant an exemption from the rental inspection ordinance for a minimum of four years, subject to revocation if the unit later falls into violation.
Is there an exemption for professionally managed properties?
The statute permits localities to exempt units managed by a licensed property manager or qualifying managing agent. Whether it applies depends on whether your locality adopted it — ask the building department.
Can the locality charge a registration fee?
Not for the written notification that a unit is used as a rental. Localities may establish fee schedules for the inspections themselves.
What is the penalty for not notifying the building department?
The sole penalty for willful failure is a civil penalty of up to $50, and no penalty applies unless the department first provides personal or written notice to the owner.
How are large apartment buildings inspected?
For developments with more than 10 units, only a sample of between two and 10 percent is inspected initially and periodically, with fees capped at 10 units — unless violations are found, in which case more units may be inspected.
Does a certificate of occupancy exempt my property?
A unit issued a certificate of occupancy within the last four years receives an exemption for a minimum of four years from issuance.
Do rental inspections change my obligations under Virginia landlord-tenant law?
No. The statute expressly does not alter rights and obligations under the VRLTA.
Professionally Managed, Properly Documented
Beyond the potential exemption, professional management means inspection-ready properties as a matter of routine rather than a scramble before a scheduled visit. Mission Realty Property Management maintains that standard across Richmond, Henrico, Chesterfield, and Hanover.
- Learn about our property management services
- Explore our owner resources and pricing
- See our City of Richmond and Henrico County service pages
- Get a free rental analysis
- Or contact our team
This article is general information and is not legal advice. Local ordinances differ and change — confirm current requirements with your locality’s building department and consult a Virginia attorney about your situation.
