Vermont security deposit rules
Vermont sets no statutory limit on the size of a security deposit. The deposit must be returned deposit and itemized statement returned within 14 days after the landlord discovers the tenant vacated (or the move-out date the tenant gave); 60 days for seasonal rentals not used as a primary residence. No interest is owed on the deposit under state law.
What the law requires
No statutory limit. Returned Deposit and itemized statement returned within 14 days after the landlord discovers the tenant vacated (or the move-out date the tenant gave); 60 days for seasonal rentals not used as a primary residence. Missing the 14-day deadline forfeits the right to withhold; willful violations carry double damages plus fees. State law does not require interest, but a municipality may adopt an ordinance requiring it (Burlington does).
- Deductions: unpaid rent and damage beyond normal wear and tear, itemised in writing. Cleaning and repainting after ordinary use are normal wear in most states.
- Deadline: the 14-day clock usually starts when the tenant moves out and, in many states, when a forwarding address is provided. Missing it typically forfeits the landlord’s right to keep any of the deposit and can add statutory damages.
- Interest: none required under state law. Cities in some no-interest states have their own ordinances, so check the municipal code where you rent.
Move-out checklist
- Give written notice of the move-out date and a forwarding address; many deadlines only start when the landlord has the address.
- Photograph every room after cleaning, with a timestamp. Request a joint inspection where the state allows one.
- If the deadline passes, send a written demand citing 9 V.S.A. § 4461. Small-claims court handles deposit disputes in every state and most cap the claim well above a typical deposit.
Related Vermont rules
- Late fees: No statutory cap or grace period for residential late fees in Vermont; the lease controls. Late fee calculator.
- Notice to end a tenancy: No written agreement, rent paid monthly: landlord must give at least 60 days' notice for no-cause termination (90 days if the tenant has lived there more than two years; 21 days for weekly). With a written rental agreement: at least 30 days before the end of the term (60 days if more than two years). Tenant: at least one rental period (§ 4456(d)). Notice calculator.
- All rules on one page: Vermont landlord and tenant law.
Frequently asked questions
How much can a landlord charge for a security deposit in Vermont?
There is no statutory cap in Vermont; the market and the lease decide. Missing the 14-day deadline forfeits the right to withhold; willful violations carry double damages plus fees. State law does not require interest, but a municipality may adopt an ordinance requiring it (Burlington does).
How long does a landlord have to return a security deposit in Vermont?
Deposit and itemized statement returned within 14 days after the landlord discovers the tenant vacated (or the move-out date the tenant gave); 60 days for seasonal rentals not used as a primary residence. The statute is 9 V.S.A. § 4461.
Does a Vermont landlord have to pay interest on the security deposit?
No. Vermont law does not require interest on residential security deposits.