Vermont Security Deposit Laws: Limits & Return Rules Explained

If you’re renting a home or apartment in Vermont, knowing your rights around security deposits can help you avoid disputes when your lease ends. This article breaks down Vermont’s security deposit laws, return deadlines, and what you need to know to protect your finances and peace of mind.

Vermont Security Deposit Limits

Vermont does not set a specific dollar or percentage cap on the amount a landlord can request for a security deposit. This means landlords are free to set the deposit amount, though most commonly it equals one or two months' rent.

• No statewide limit on the amount of a security deposit
• Deposits are usually discussed in your lease or rental agreement
• Local ordinances (such as in Burlington) may set lower caps—always check your city’s rules

While state law doesn’t restrict the amount, security deposits are meant to cover things like unpaid rent or damage beyond normal wear and tear—not routine cleaning or repainting.

Permitted Deductions from a Security Deposit

By law, your landlord can only make deductions from your security deposit for:

• Unpaid rent and utility charges
• Damages beyond normal wear and tear
• Costs from violation of lease terms (such as unauthorized pets)

Security Deposit Return Deadlines in Vermont

Landlords in Vermont must return your security deposit within 14 days after your tenancy ends, or within 60 days if you rented under seasonal or short-term arrangements.

• The return must include either your full deposit or an itemized written statement explaining any deductions
• Your landlord should send this to your last known address or the one you provide

If you don’t receive your deposit or an explanation within these timeframes, you may have legal grounds to recover the deposit plus additional damages under Vermont Statutes Title 9, Chapter 137, Section 4463.

What To Do If Your Security Deposit Isn’t Returned

If you believe your landlord is unfairly withholding your security deposit:

• Send a written request (keep a copy for your records)
• Document communications and provide forwarding address information in writing
• If issues aren’t resolved, you can file a claim in Vermont’s Small Claims Court

Official Forms for Renters

• Vermont Small Claims Complaint (Form 102-00029)
  When and how to use: Renters use this form to file a complaint in small claims court if a landlord does not return a security deposit within the legal deadline. Example: If your deposit isn’t returned after 14 days, you can file using this form.
  Download the Small Claims Complaint form from the Vermont Judiciary

The Vermont Small Claims Court handles rental disputes such as security deposit claims.

Relevant Legislation in Vermont

The main law covering rental deposits is Vermont Statutes Title 9, Chapter 137: Residential Rental Agreements. Section 4463 specifically addresses security deposit requirements, return periods, and permitted deductions.¹

FAQ: Vermont Security Deposit Rules

1. What is the maximum security deposit a landlord can charge in Vermont?
   There is no statewide maximum. However, local laws in cities like Burlington may set stricter limits. Always check your city’s specific regulations.
2. How fast must my landlord return my security deposit in Vermont?
   Your landlord must return your deposit (or provide an itemized statement of deductions) within 14 days after your lease ends—unless it’s a seasonal rental, which allows 60 days.
3. What can my landlord deduct from my security deposit?
   Landlords can only deduct for unpaid rent, damages beyond normal wear and tear, unpaid utilities, or lease violations.
4. What do I do if my landlord doesn't return my deposit?
   Send a written demand. If unresolved, file a claim in Vermont Small Claims Court using their official forms.
5. Does my landlord have to give me receipts or a list of charges if they keep part of my deposit?
   Yes, any deductions from your deposit must be detailed in a written statement sent to you within the 14-day deadline.

Need Help? Resources for Renters

• Vermont Small Claims Court – File rental disputes, including unreturned security deposits
• Vermont Residential Rental Agreements Law (Title 9, Chapter 137) – Complete legislation text
• Vermont Legal Aid: Renters' Rights Resources – Free legal advice and support for tenants
• Burlington Rental Housing Tenant Resources – For Burlington city-specific questions and local deposit limits
• Need more help? Call Vermont Legal Aid at 1-800-889-2047 for free support if you have trouble getting your deposit back.

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1. Vermont Statutes Title 9, Chapter 137, Section 4463 – Security Deposits (Current 2024 Edition)
2. Vermont Small Claims Court – Civil Division
3. Vermont Legal Aid – Renters’ Rights

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