Vermont

Security Deposit Amount

In Vermont, there is no maximum security deposit.

Options for Holding

Vermont does not prohibit commingling residential security deposits with other funds and does not permit towns or municipalities to adopt any ordinance limiting how a security deposit is held.

Notification Requirements

Vermont security deposit law does not require landlords to notify tenants where their security deposit is held.

Payment of Interest Earned

Vermont does not require residential landlords to hold security deposits in interest-bearing accounts or pay tenants any interest on tenant security deposits. However, towns or municipalities may adopt ordinances governing security deposits which may authorize the payment of interest.

Timeline for Returning

The landlord must return the deposit within 14 days after either:

• The date the landlord discovers the tenant has vacated or abandoned the premises.
• The date the tenant vacated the premises if the tenant provided the landlord notice of that date.

Claims Process

The security deposit and an itemized statement of deductions, must be returned to the tenant within 14 days after the tenant vacates the premises.

If the tenant disputes the deductions, they may file an action in small claims court.

Landlords in Vermont may retain all or a portion of the security deposit for:

• Nonpayment of rent
• Damage to property of the landlord, unless the damage is the result of normal wear and tear or the result of actions or events beyond the control of the tenant
• Nonpayment of utility or other charges that the tenant was required to pay directly to the landlord or to a utility
• Expenses required to remove from the rental unit articles abandoned by the tenant

If a landlord fails to return the security deposit with a statement within 14 days, the landlord forfeits the right to withhold any portion of the security deposit. If the failure is willful, the landlord shall be liable for double the amount wrongfully withheld, plus reasonable attorney’s fees and costs.

Seasonal Rentals: In the case of the seasonal occupancy and rental of a dwelling unit not intended as a primary residence, the security deposit and written statement shall be returned within 60 days.