Vermont security deposit law

Chapter 137 sets no statewide maximum security deposit; local rules can add limits. Any advance, deposit or prepaid rent that is refundable when the tenancy ends counts as a security deposit, whatever it is called, and its purpose is to secure the tenant's duties to pay rent and keep up the unit.

9 V.S.A. § 4461(a) 9 V.S.A. ch. 137

• A town or city may adopt its own security deposit ordinance. It must add to, and not fall below, the state's protections, it may require interest on deposits, and it may not limit how a deposit is held. 9 V.S.A. § 4461(g) See Where the deposit is held and interest on the Vermont page
• When a tenant with a disability makes reasonable modifications at the tenant's own expense, you may, if reasonable, require the unit to be restored afterward, but you may not require an additional security deposit for this. 9 V.S.A. § 4503(a)(9)
• Burlington has a separate published deposit limit, permitted pet-payment category and interest requirements. See the dated city-specific review under Local rules before collecting a deposit there. Burlington Code § 18-120(a)

Return the deposit, with a written statement itemizing any deductions, within 14 days from the date you discover that the tenant vacated or abandoned the unit, or from the date the tenant vacated if the tenant gave you notice of that date. For a seasonal rental that is not meant as a primary residence, the deadline is 60 days.

9 V.S.A. § 4461(c)

• You may keep all or part of the deposit only for unpaid rent; damage to your property beyond normal wear and tear, unless caused by events beyond the tenant's control; unpaid utility or other charges the tenant had to pay you or a utility directly; and the cost of removing things the tenant abandoned. 9 V.S.A. § 4461(b) 9 V.S.A. § 4451(5)
• Hand-deliver or mail the statement and any refund to the tenant's last known address. 9 V.S.A. § 4461(d)
• If you miss the 14 days, you lose the right to keep any part of the deposit. If the failure is willful, you owe double the amount wrongfully withheld, plus reasonable attorney's fees and costs. 9 V.S.A. § 4461(e)
• When your interest in the unit ends, the deposit transfers to the new landlord, who must give the tenant actual notice of the new landlord's name and address and a statement that the deposit was transferred. 9 V.S.A. § 4461(f)

Chapter 137 does not say where a security deposit must be kept and does not require interest on it. A town or city ordinance may authorize interest, but such an ordinance may not limit how a deposit is held. Burlington's deposit section is reviewed below; other local deposit rules remain unverified, so check the town where the home is.

9 V.S.A. § 4461(g) 9 V.S.A. ch. 137

• A local deposit ordinance may let a housing board of review hear deposit disputes at the request of a landlord or tenant. 9 V.S.A. § 4461(g)

Chapter 137 does not require a move-in checklist or condition report. Deposit deductions cannot cover normal wear and tear, which the statute defines as deterioration from reasonable use without negligence, carelessness, accident or abuse by the tenant, household members or guests, so a dated record of the unit's condition at move-in helps show what changed.

9 V.S.A. § 4451(5) 9 V.S.A. § 4461(b)(2) 9 V.S.A. ch. 137

• The warranty of habitability applies from the day you deliver the unit, not only after move-in problems are reported. 9 V.S.A. § 4457(a) See Repairs and habitability on the Vermont page