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Vermont security deposit law

Source: 9 V.S.A. § 4461 · Checked against the statute

Maximum deposit
No statutory limit.
Return deadline
14 days after move-out; 60 days after move-out (Seasonal rental not intended as a primary residence)
If the landlord keeps it wrongly
A landlord who misses the 14-day deadline forfeits the right to withhold any of the deposit. If the failure is willful, the landlord owes double the amount wrongfully withheld, plus reasonable attorney's fees and costs (§ 4461(e)).

Calculate your Vermont deadline

Choose your state and move-out date to see when your landlord must return the deposit.

When the deposit must be returned

  • Return the deposit with a written itemized statement within 14 days from the date the tenant vacated, if the landlord got notice of that date, or from the date the landlord discovers the tenant vacated or abandoned the unit (§ 4461(c)).
  • For a seasonal rental not intended as a primary residence, return the deposit and statement within 60 days (§ 4461(c)).

No forwarding-address condition. The landlord hand-delivers or mails the statement and payment to the tenant's last known address (§ 4461(d)).

Itemized list of deductions

Required: Yes. Written statement itemizing any deductions (§ 4461(c)).

What can and can't be deducted

The landlord may not withhold for damage that is normal wear and tear or the result of actions or events beyond the tenant's control. Allowed withholdings are unpaid rent, damage, unpaid utility or other required charges, and the cost of removing abandoned articles (§ 4461(b)).

Nonrefundable fees

The statute defines a deposit as any advance, deposit, or prepaid rent, however named, that is refundable (§ 4461(a)). It doesn't otherwise address nonrefundable fees. Landlords may not charge rental application fees (9 V.S.A. § 4456a(a)).

Interest, bank account and move-in inspection

  • Interest required: No. No statewide interest requirement. Towns may adopt ordinances that require interest (§ 4461(g)).
  • Separate account required: No. No statewide separate-account requirement. Local ordinances may not limit how a deposit is held (§ 4461(g)).
  • Move-in inspection required: No. No statewide move-in inspection requirement.

Penalties and bad faith

A landlord who misses the 14-day deadline forfeits the right to withhold any of the deposit. If the failure is willful, the landlord owes double the amount wrongfully withheld, plus reasonable attorney's fees and costs (§ 4461(e)).

No presumption. Double damages require a willful failure to return the deposit with a statement within 14 days (§ 4461(e)).

Getting your deposit back in court

Small claims actions up to $10,000 (12 V.S.A. § 5531). Court information

Before filing, many tenants send a written demand first. Write a Vermont demand letter →

City and county rules

  • Burlington: Burlington Code § 18-120 caps the deposit at one month's rent, plus an optional pet payment of up to half a month's rent (not allowed for an animal that mitigates a disability). Deposits must be held in an interest-bearing account and returned with interest and an itemized statement within 14 days. Landlord and tenant must make a signed list of existing damage at move-in. The statement must tell the tenant of the right to request a Housing Board of Review hearing within 30 days of receiving it (44 days after vacating if no notice was given). Missing the 14 days forfeits the right to withhold, and willful failure means double the amount wrongfully withheld.

Also good to know

  • When the landlord's interest ends, the deposit transfers to the new landlord. The new landlord must notify the tenant of the transfer (§ 4461(f)).
  • H.772 (2026 session) would have capped deposits. It failed in the Senate on May 27, 2026, so no cap is in force.

Sources

Laws change. This page was checked against the sources above on October 11, 2026. It is legal information, not legal advice; see our methodology.