Vermont security deposit law: 14 days, no cap in the statute and double damages
Vermont's rule is a single section, 9 V.S.A. 4461. It does not set a dollar cap, but it gives the landlord 14 days to return the deposit with a written statement of deductions and takes away the right to withhold anything if that date is missed.
What is a Vermont security deposit?
Section 4461(a) defines a security deposit as any advance, deposit or prepaid rent, however named, that is refundable to the tenant at the end of the tenancy. Its function is to secure the tenant's duty to pay rent and to maintain the unit. Prepaid rent that is refundable is swept into the definition, so a "last month's rent" payment that comes back is treated like a deposit.
The section I read states no maximum amount. If you want a firm number, look at your lease form and any local ordinance, because subsection (g) lets a town or municipality adopt its own rules.
What can you keep money for?
Subsection (b) lists four reasons for retaining all or part of the deposit:
- Nonpayment of rent.
- Damage to the landlord's property, unless it is normal wear and tear or the result of actions or events beyond the tenant's control.
- Nonpayment of utility or other charges the tenant had to pay directly to the landlord or a utility.
- Expenses to remove articles the tenant abandoned from the rental unit.
The list reads as exclusive, so something like routine repainting between tenants has no place on it.
When do the 14 days start?
Subsection (c) requires the landlord to return the deposit with a written statement itemizing any deductions within 14 days from the date the landlord discovers that the tenant vacated or abandoned the unit, or the date the tenant vacated, provided the landlord received notice from the tenant of that date. For a seasonal rental that is not a primary residence, the period is 60 days.
Subsection (d) says you comply by hand-delivering or mailing the statement and any payment to the tenant's last known address.
Example a made-up tenant tells the landlord in writing that they will be out on April 10, and the keys are returned that day. The deadline is April 24. A statement mailed on April 20 that keeps $85 for abandoned furniture removal and returns $1,215 of a $1,300 deposit is on time. If the tenant never gave a date and the landlord discovers the vacancy on April 12, the 14 days run from April 12 instead.
What happens if you are late?
Under subsection (e), a landlord who does not return the deposit with a statement within 14 days forfeits the right to withhold any portion of it. If the failure is willful, the landlord is also liable for double the amount wrongfully withheld, plus reasonable attorney's fees and costs.
The two steps are different. Lateness alone means you lose the deductions. Willfulness adds the double award and the fees.
Sales and local rules
When your interest in the unit ends, the deposit is transferred 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. Under subsection (g), a town or municipality may adopt an ordinance on security deposits that adds to, and does not conflict with, the minimum protections. An ordinance may authorize paying interest on a deposit and may let a housing board of review hear deposit disputes on request.
How DoorKeeping can support a Vermont move-out
The hard part of the Vermont rule is deciding which of two dates started your clock. DoorKeeping stores the tenant's written move-out date, notes the day you discovered a vacancy and shows the 14th day on your list. It drafts the itemized statement for you to approve. Rent and deposits remain in your own bank account. This is general information, not legal advice. Check the current statute or ask a local attorney before you rely on it.
Sources
Questions
- Is there a maximum security deposit in Vermont?
- Section 4461 sets no dollar cap. A town or municipality may adopt an ordinance on deposits, so check local rules.
- How long does a Vermont landlord have to return a deposit?
- Fourteen days from the date the landlord discovers the tenant vacated or the date the tenant vacated if the tenant gave notice of it, or 60 days for seasonal rentals.
- What happens if a Vermont landlord misses the deadline?
- The landlord forfeits the right to withhold any portion, and a willful failure makes the landlord liable for double the amount wrongfully withheld plus attorney's fees and costs.