Vermont Security Deposit Law

Maximum deposit

Vermont state law sets no limit on the amount of a security deposit, though a town ordinance may add deposit rules (9 V.S.A. § 4461). (9 V.S.A. § 4461 (no amount limit))

Return deadline

Landlords must hand-deliver or mail the deposit with a written itemized statement within 14 days after the tenant vacates (or after the landlord discovers the unit was vacated or abandoned), or within 60 days for a seasonal rental that is not a primary residence (9 V.S.A. § 4461(c)-(d)). (9 V.S.A. § 4461(c), (d))

Itemized statement of deductions

The deposit must be returned with a written statement itemizing any deductions (9 V.S.A. § 4461(c)). (9 V.S.A. § 4461(b)-(c))

Interest on the deposit

Vermont state law does not require interest on security deposits, but a town ordinance may require it (9 V.S.A. § 4461(g)). (9 V.S.A. § 4461(g) ('The ordinance may authorize the payment of interest on a security deposit.'))

Penalty for wrongful withholding

A landlord who does not return the deposit with a statement within 14 days loses the right to keep any of it, and a willful failure makes the landlord liable for double the amount wrongfully withheld plus attorney's fees and costs (9 V.S.A. § 4461(e)). (9 V.S.A. § 4461(e))

Where the deposit is held

Vermont's deposit statute says nothing about where a landlord must keep the money, so no escrow or segregated account is required statewide (9 V.S.A. § 4461). (9 V.S.A. § 4461)

Receipt or written notice of the deposit

No Vermont statute requires a written receipt for a security deposit or a notice of the bank holding it; the only written-notice duty arises when ownership changes hands (9 V.S.A. § 4461(f)). (9 V.S.A. § 4461)

Move-in condition checklist

Vermont does not require a move-in inspection or condition checklist, though the state housing department urges landlords to use one (9 V.S.A. § 4461). (9 V.S.A. § 4461, 9 V.S.A. Ch. 137 (Residential Rental Agreements))

Pet deposits

Vermont has no pet-specific deposit rule; a pet deposit is simply part of the refundable security deposit governed by the 14-day return rule (9 V.S.A. § 4461(a)). (9 V.S.A. § 4461)

Nonrefundable fees

Vermont landlords may not charge any application fee to apply for a residential rental, and upfront money taken to secure a tenancy is treated as a refundable deposit (9 V.S.A. §§ 4456a(a), 4461(a)). (9 V.S.A. § 4456a(a), 9 V.S.A. § 4461)

§ 4461(a) treats any advance, deposit or prepaid rent 'however named' as a security deposit, and the state housing department advises there is no such thing as a nonrefundable deposit. Since 1999, § 4456a has barred application fees for residential units.

Small-landlord exemptions

Vermont's deposit rules apply regardless of landlord size or owner occupancy; the chapter excludes only arrangements such as hotels, institutions, condo owners and campgrounds, and seasonal non-primary rentals get 60 days instead of 14 to return the deposit (9 V.S.A. §§ 4452, 4461(c)). (9 V.S.A. § 4452, 9 V.S.A. § 4461)

Deposit alternatives and installments

Vermont law has no provision on deposit insurance, surety bonds or paying a deposit in installments (9 V.S.A. § 4461). (9 V.S.A. § 4461)