Overview
Vermont security deposit laws are designed to ensure fair treatment of tenants and clear responsibilities for landlords. These laws cover everything from how much can be charged to how and when the deposit must be returned.
Under Vermont Statutes Annotated Title 9, § 4461, landlords must follow specific procedures for the handling of security deposits. Failure to comply may result in penalties and forfeiture of the right to retain any part of the deposit.
This guide covers:
How much landlords can charge
Where deposits must be stored
Rules for returning security deposits
Penalties for non-compliance
Related Statute: 9 V.S.A. § 4461
1. Security Deposit Limits & Storage Requirements
Maximum deposit: Vermont law does not impose a limit on the amount a landlord may charge as a security deposit.
Storage requirements: While landlords are required to safeguard the deposit, Vermont law does not mandate separate or interest-bearing accounts.
Tenant notification: There is no legal requirement to notify tenants about where the deposit is being stored.
Law Reference: 9 V.S.A. § 4461(a)
2. Security Deposit Returns & Allowable Deductions
Return deadline: Landlords must return the deposit within 14 days after the termination of the tenancy and delivery of possession.
Permissible deductions: Deductions are allowed for unpaid rent, damages beyond normal wear and tear, and other lease violations.
What landlords cannot deduct: Landlords cannot deduct for normal wear and tear, such as worn carpet or faded paint.
Itemized statement required: If deductions are made, a written, itemized list must accompany any returned portion of the deposit.
Law Reference: 9 V.S.A. § 4461(c)
3. Interest Payments & Documentation Requirements
Interest payments: Vermont law does not require landlords to pay interest on security deposits.
Move-in condition report: While not mandated, both parties are encouraged to document the condition of the rental unit at the beginning and end of the lease.
Tenant review period: Tenants should conduct a thorough inspection and retain photos or notes for any potential disputes.
Failure to provide documentation: Failure to return the deposit or provide an itemized list of deductions within 14 days may result in forfeiture of the right to withhold any portion.
Law Reference: 9 V.S.A. § 4461(c)
4. Penalties for Mishandling Security Deposits
Vermont enforces consequences for failure to comply with deposit return laws.
Failure to return the deposit within 14 days may result in the landlord being liable for double the amount wrongfully withheld, plus interest and court costs.
Failure to provide an itemized list of deductions may result in forfeiture of the right to retain any funds.
Law Reference: 9 V.S.A. § 4461(e)
Key Takeaways
There is no limit on the amount that can be charged as a deposit in Vermont.
Deposits must be returned within 14 days with a written itemized list of deductions if applicable.
No interest is required, and separate accounts are not mandatory.
Only specific deductions are allowed, and normal wear and tear cannot be charged.
Non-compliance may result in double damages and court costs.
By understanding and following Vermont security deposit laws, landlords can avoid legal issues, and tenants can better protect their rights to a fair and timely return of their deposits.
Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. Readers should not act or refrain from acting based on any information included in this post without seeking legal counsel or other professional guidance specific to their situation. The information is provided “as is” without any representations or warranties of any kind, express or implied, including but not limited to the accuracy, completeness, or reliability of the content. Laws and regulations may change and vary by jurisdiction.
