West Virginia Commercial Security Deposit Laws

West Virginia's residential Security Deposit Act (WV Code § 37-6A) applies only to residential tenancies. Commercial security deposits have no statutory regulation whatsoever — they are entirely governed by the lease agreement.

No Statutory Regulation In West Virginia commercial leasing:

• No cap on the deposit amount.
• No requirement to hold deposits in separate or interest-bearing accounts.
• No prohibition on commingling deposits with other funds.
• No statutory return deadline — the return timeline is whatever the lease specifies.
• No mandated interest on the deposit.

Commercial deposits typically range from 3 to 6 months' rent, with higher amounts for tenants with limited credit or for properties with significant tenant improvements.

Key Lease Provisions

The commercial lease should clearly address:

• Deposit amount and whether it adjusts upon rent escalation.
• Holding: Separate account or commingled.
• Permitted deductions: Unpaid rent, property damage, restoration costs, unpaid utilities, outstanding CAM charges.
• Replenishment: Whether the tenant must restore the deposit after a draw-down.
• Return timeline: Typically 30-60 days after lease expiry and move-out inspection.
• Interest: Whether the tenant earns interest (negotiable).

Letters of Credit

For larger commercial tenancies, landlords may accept a standby letter of credit instead of a cash deposit:

• Preserves tenant's working capital.
• Must be irrevocable and unconditional.
• The lease should address renewal obligations and burn-down provisions.

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