Moving From Rent-Controlled to Market Rent in Vermont

If you’re a renter in Vermont and your apartment is transitioning from some form of rent control or long-term capped rent to a market-rate lease, understanding your rights is crucial. While Vermont does not have statewide rent control, some local ordinances and unique situations (like affordable housing programs) may impose restrictions. If you’re notified that your rent will increase to market rates, here’s what you need to know to protect your housing stability and understand your options.

Understanding Rent Control and Market Rent in Vermont

Vermont currently does not have statewide rent control. Some municipalities or special housing programs may set maximum rents for certain units, especially those with government funding. Moving from a rent-controlled or subsidized unit to a market-rate situation means your landlord can set the rent according to current market conditions, within legal guidelines.

When Can Landlords Increase the Rent?

Vermont law requires landlords to provide tenants with proper notice before increasing rent. If the rent is set to increase after your lease expires, or if you’re on a month-to-month agreement, these rules apply:

• 60 days’ written notice must be given before a rent increase takes effect
• If you’re in subsidized or affordable housing, check your individual program rules
• No restrictions on the amount, but notice and reasonableness requirements still apply

Official guidance and sample notice forms can be found on the Vermont Agency of Commerce and Community Development’s Resources for Renters and Landlords.

Required Forms and Notices

• Notice of Rent Increase (no specific form number): Used by landlords to notify tenants of a rent increase. Landlords must provide this notice in writing at least 60 days before the increase is effective. Example: If your current lease ends July 31 and your landlord wants to increase your rent for August, you must receive the notice by June 1. See Vermont Statutes, 9 V.S.A. § 4455 – Termination of tenancy; notice for details.
• Termination Notice (no specific form number): If you do not accept the new rent, or the landlord chooses not to renew your lease, written notice is required to end your tenancy under similar timelines. See the Notice to Terminate Rental Agreement sample form.

You are not legally required to complete any special forms as the tenant unless you are contesting the rent increase, in which case a written complaint or response should be sent.

What Can Tenants Do If Facing a Large Rent Increase?

Facing a move from a rent-controlled or subsidized unit to market rates can be stressful. Here are steps to safeguard your tenancy and understand your choices:

• Review all written notices from your landlord carefully for compliance with Vermont law
• If you believe the rent increase notice did not follow legal requirements, contact the state’s housing resources office or speak to a legal aid organization
• Request clarification or negotiation with your landlord, if you need more time, or have extenuating circumstances
• If you cannot afford the new market rent, look for resources or alternative housing options early

Where to Resolve Disputes and Who Oversees Tenancy Issues

Vermont does not have a statewide landlord-tenant tribunal, but disputes are typically handled in Vermont Superior Court – Civil Division. Tenants and landlords may also consult the Agency of Commerce and Community Development for mediation and guidance.

Key Vermont Legislation for Renters

• Vermont Residential Rental Agreements Law (9 V.S.A. Chapter 137)
• Vermont Statute § 4455 – Termination of Tenancy; Rent Increases

Be sure to consult these statutes when reviewing your lease or responding to notices.

FAQs About Moving to Market Rent in Vermont

1. Can my landlord raise my rent to any amount in Vermont?
   Vermont has no statewide rent control, so landlords can set rents at market rates as long as they provide at least 60 days’ written notice before the increase takes effect.
   
2. What if I can’t afford the new market rent?
   If you cannot afford the increased rent, you may need to negotiate with your landlord, seek financial assistance, or find a new place to live. Contact local housing agencies for support or explore rental assistance programs.
   
3. Do I have to sign a new lease when my rent changes to market rate?
   If you’re staying in the unit under different terms (like a new rent amount or different lease length), your landlord can require you to sign a new lease or rental agreement.
   
4. How do I dispute a rent increase notice?
   If you believe the notice was not given correctly, respond in writing and consider contacting the Vermont Agency of Commerce and Community Development or seeking legal aid.
   
5. Are there resources to help tenants facing rent increases?
   Yes. The Vermont Agency of Commerce and Community Development, Vermont Legal Aid, and the local Superior Court can provide guidance, mediation, or legal help.

Need Help? Resources for Renters

• Vermont Agency of Commerce and Community Development – Renters & Landlords Resources
• Vermont Legal Aid – Rental Housing Help
• Vermont Superior Court – Civil Division (handles landlord-tenant disputes)
• Vermont DCF Rental Assistance Programs

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1. Vermont Residential Rental Agreements Law (9 V.S.A. Chapter 137)
2. Vermont Statute – Rent Increase, 9 V.S.A. § 4455
3. Vermont Agency of Commerce and Community Development – Housing Resources
4. Vermont Superior Court – Civil Division
5. Vermont Legal Aid – Rental Housing Advice

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