Breaking a Lease in Vermont

Vermont Security Deposit Law — Limits & Deadlines (2026)

By Oleg Kachko · Updated June 10, 2026

✓ Law Verified June 2026

This guide explains vermont security deposit law in plain English — how much your landlord can charge, when they must return it, what they can and cannot deduct, and what to do if they do not give it back. All figures are from Vermont law, verified as of June 2026.

Vermont Security Deposit Rules at a Glance

Maximum deposit No state statutory limit — Vermont law (9 V.S.A. § 4461) does not cap the amount a landlord may collect as a security deposit. Most landlords charge one to two months of rent, but there is no state maximum. Note: Burlington has a local ordinance limiting deposits to one month of rent.
Return deadline 14 — the landlord must return the deposit (or the balance after lawful deductions) with a written itemized statement within 14 days after the tenancy ends and the tenant vacates. For seasonal rentals that are not the tenant’s primary residence, the deadline is 60 days.
Itemized deductions required YES — the landlord must provide a written itemized statement listing each deduction and the amount withheld. If the landlord fails to provide this itemized list within 14 days, the landlord forfeits the right to withhold any portion of the deposit and must return the full amount.
Interest on deposit required NO — Vermont state law does not require landlords to hold security deposits in interest-bearing accounts or pay tenants interest. However, municipalities may adopt local ordinances requiring interest. Burlington, for example, requires landlords to hold the deposit in an interest-bearing account and pay the tenant the accrued interest upon move-out.
Penalty for late/bad-faith return If the landlord fails to return the deposit or provide an itemized statement within 14 days, the landlord forfeits the right to make any deductions and must return the full deposit. If a court finds the landlord willfully failed to comply, the tenant may recover double the amount wrongfully withheld, plus reasonable attorney fees and court costs.

Move-in/move-out walkthrough: NO — Vermont state law does not require a move-in or move-out walkthrough inspection. However, tenants are strongly advised to document the unit’s condition with dated, timestamped photos at both move-in and move-out. Burlington’s local ordinance does require a move-in inspection checklist to be completed by landlord and tenant at the start of tenancy.

Separate deposit account: NO — Vermont state law does not require landlords to hold the deposit in a separate or designated bank account. There is no state requirement for the deposit to be kept in-state or in a specific type of account. Burlington’s local ordinance does require an interest-bearing account.

What Your Landlord Can and Cannot Deduct in Vermont

A Vermont landlord may deduct for: (1) unpaid rent; (2) damage to the landlord’s property caused by the tenant, excluding normal wear and tear and damage from events beyond the tenant’s control; (3) unpaid utility or other charges the tenant was obligated to pay directly to the landlord or utility company; and (4) reasonable expenses to remove property the tenant abandoned in the unit.

Normal wear and tear vs damage: Vermont law (9 V.S.A. § 4461) excludes “normal wear and tear” from allowable deductions but does not provide a statutory definition. Generally, normal wear and tear includes minor scuffs on walls, carpet worn from ordinary foot traffic, small nail holes, faded paint, and similar deterioration from everyday living.

Damage that goes beyond this — such as large holes in walls, stained or burned carpet, broken fixtures, or pet damage — is considered tenant damage and may be deducted.

How to Get Your Deposit Back in Vermont

If your landlord wrongfully withholds your deposit: (1) send a written demand letter requesting the full deposit or an itemized statement; (2) if the landlord does not respond or refuses, you may file a Small Claims Complaint in Vermont Superior Court in the county where you lived — claims up to 5000 are eligible; (3) filing fees are 60 for claims of 1000 or less, and 90 for claims over 1000 (fee waivers available for qualifying tenants); (4) bring your lease, move-out photos, written communications, and any other evidence; (5) you may be able to recover double the wrongfully withheld amount plus attorney fees if the court finds the landlord acted willfully; (6) Burlington tenants may alternatively request a hearing with the Burlington Housing Board of Review.

You may also contact the Vermont Attorney General’s Consumer Assistance Program at 800-649-2424 to file a complaint about a landlord.

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Other Vermont deposit rules: (1) Seasonal rental exception: if the rental is not the tenant’s primary residence, the landlord has 60 days (not 14) to return the deposit. (2) Municipalities may adopt their own security deposit ordinances — Burlington is the most notable, with a one-month deposit cap, interest-bearing account requirement, and mandatory move-in inspection checklist.

(3) The landlord’s failure to provide an itemized statement within 14 days results in automatic forfeiture of all deduction rights — the full deposit must be returned regardless of actual damages.

(4) The tenant must provide a forwarding address in writing to trigger the 14-day return period. (5) Vermont tenants may also file complaints through the Consumer Assistance Program at UVM, operated in partnership with the Attorney General’s office (800-649-2424).

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Official Vermont Sources & Resources

Understanding Vermont Security Deposit Law

Your Vermont security deposit is your money until the landlord proves a lawful deduction. Vermont security deposit law sets clear limits on how much can be charged, what can be deducted, and when the balance must be returned. If your landlord misses the Vermont security deposit return deadline or takes deductions that are not allowed, you may be entitled to penalties.

Document the condition of your unit at move-in and move-out — photos are the best protection for your Vermont security deposit.

This Vermont security deposit guide was last verified against official sources in June 2026. Laws change — verify with your state or a local legal-aid office.

More Vermont Tenant Rights Guides

Disclaimer: This guide is informational only and is not legal advice. Landlord-tenant laws change and vary by city and county within a state. Verify current rules with your state, your local court, or a free legal-aid office before acting. If you are facing eviction, contact a local tenant attorney or legal-aid organization right away.

Renting? Protect your belongings — compare renters insurance at Home Insure Guide. Divorce involving a lease? See Divorce Help Guide. Unsafe housing / toxic mold injury? Some cases qualify — see Mass Tort Info.