Vermont Security Deposit Laws and Tenant Protections

If you’re renting a home or apartment in Vermont, understanding your rights around security deposits can help you protect your finances. Vermont’s security deposit laws set out what landlords can charge, how deposits are handled, and what steps you can take if there’s a disagreement. Staying informed can help you avoid common disputes and recover your security deposit after moving out.

What is a Security Deposit?

A security deposit is money paid by a renter to a landlord at the start of a tenancy. This deposit acts as insurance for the landlord in case of unpaid rent, damage beyond normal wear and tear, or other lease violations. In Vermont, landlords and tenants are governed by the Vermont Residential Rental Agreements Act.^[1]

How Much Can a Vermont Landlord Charge?

• There is no legal maximum on security deposit amounts in Vermont. However, it’s common for landlords to request the equivalent of one or two months’ rent.
• Landlords must disclose the purpose and use of the security deposit in the lease agreement.

Rules for Handling Security Deposits

Once paid, landlords must:

• Keep the deposit in a secure account (not required to be interest-bearing in Vermont).
• Return the deposit within 14 days after the tenancy ends and you move out, or provide a written statement itemizing any deductions.
• Send the deposit and/or statement to your last known address.

Only certain costs can be deducted from your deposit, including unpaid rent, damages beyond normal wear and tear, or expenses directly stated in your lease.

What If Your Landlord Doesn’t Return Your Security Deposit?

If you don’t receive your deposit or a written explanation of deductions within 14 days, you can take action. Under Vermont law, if the landlord fails to comply, you may be entitled to twice the amount wrongfully withheld.^[1]

Disputing Security Deposit Deductions

If you disagree with deductions, you can negotiate directly with your landlord. If you can’t resolve the issue, you may file a claim in your local Vermont Superior Court – Small Claims Division. This is the main tribunal for residential tenancy disputes in Vermont.

Official Form: Small Claims Complaint

• Form Name: Small Claims Complaint
• Form Number: 400-00108
• When to Use: If your landlord doesn’t return your deposit within 14 days or you believe deductions are unfair, you can file this form to start a small claims case.
• Example: You moved out, cleaned thoroughly, but only received half of your deposit. Use this form to ask the court to order the landlord to return the remainder.
• Download Small Claims Complaint Form

What Deductions Are Allowed?

• Unpaid rent or bills outlined in your rental agreement
• Cleaning costs if the unit is not left "reasonably clean"
• Repairs for damage beyond ordinary wear and tear

Ordinary wear and tear covers things like minor scuffs or faded paint. Broken appliances, pet damage, or holes in walls are usually not considered normal wear and tear and may be deducted.

Frequently Asked Questions About Vermont Security Deposits

1. How long does a Vermont landlord have to return the security deposit?
   Landlords must return your security deposit or provide a written list of deductions within 14 days after the tenancy ends.
2. Can my landlord keep my security deposit for cleaning?
   Landlords may deduct reasonable cleaning fees only if the rental was not left reasonably clean, beyond what’s considered normal wear and tear.
3. What happens if a landlord doesn’t return the deposit on time?
   If the deposit or an itemized statement isn’t provided within 14 days, you may recover twice the amount wrongfully withheld, plus court costs if you sue successfully.
4. How do I dispute unfair deposit deductions?
   First, try negotiating with your landlord in writing. If you can’t resolve it, you may file a Small Claims Complaint at Vermont Superior Court using the official form.
5. Does my deposit have to earn interest?
   Unlike some states, Vermont law does not require security deposits to earn interest for renters.

Conclusion: Key Takeaways for Vermont Renters

• Document the condition of your rental with photos and notes when you move in and out.
• Vermont landlords have 14 days to return your deposit or explain deductions.
• If you disagree with deductions, the Small Claims Division can help resolve disputes.^[2]

By understanding these rules, you can help protect your security deposit and confidently assert your renter rights if problems arise.

Need Help? Resources for Renters

• Vermont Superior Court – Small Claims Division: Handles most deposit disputes and rental complaints.
• Vermont Residential Rental Agreements Act (9 V.S.A. § 4451 et seq.): Full text of tenant-landlord legislation.
• Vermont Legal Aid – Renters' Rights Information: Free legal information and help for renters.
• Champlain Valley Office of Economic Opportunity (CVOEO) – Renter Resources: Advocacy and support for Vermont renters.

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1. See: Vermont Residential Rental Agreements Act (9 V.S.A. § 4451–4468)
2. Vermont Judiciary, Small Claims Division

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