Vermont Security Deposit Law: Limits, Deadlines, and Penalties
What Vermont landlords can charge, when deposits must be returned, and what it costs to get it wrong. Last reviewed 2026-08-12.
How much can a landlord charge in Vermont?
Vermont statute sets no maximum deposit, but municipalities may regulate deposits by ordinance. Burlington and Brattleboro both cap total deposits at one month's rent, and Burlington additionally limits pet deposits and requires interest.
State law sets no pet deposit rules; Burlington caps pet deposits at one-half month's rent within its one-month total cap and waives them for service animals.
When must the deposit be returned?
The landlord must hand-deliver or mail the deposit with a written statement of deductions within 14 days from the date the tenant vacated or the date the landlord discovers the tenant vacated, sent to the tenant's last known address. For a seasonal dwelling not used as a primary residence, the deadline is 60 days.
The deposit must be returned with a written statement itemizing any deductions. Missing the 14-day deadline forfeits the landlord's right to withhold any portion of the deposit.
What happens if a landlord misses the deadline?
A landlord who fails to return the deposit with the itemized statement within 14 days forfeits the right to withhold anything. If the withholding is willful, the landlord is liable for double the amount wrongfully withheld plus reasonable attorney fees and costs.
Interest and holding requirements
Vermont state law does not require interest on deposits, but municipal ordinances may. Burlington requires deposits to be held in an interest-bearing account with interest paid to the tenant at move-out.
No state statutory requirement for a separate account. Burlington requires deposits to be held in an interest-bearing account, and if the property is sold the deposit must be transferred to the new owner, who must notify the tenant.
What Vermont landlords get wrong
Vermont's 14-day deadline is one of the shortest in the country, and the consequence is absolute: one day late and you forfeit every deduction, even for real damage. Willful withholding doubles the damages and adds attorney fees. Deductions are limited to unpaid rent, damage beyond wear and tear, unpaid utilities the tenant owed the landlord, and removal of abandoned property. If you rent in Burlington or Brattleboro, check the local ordinance — Burlington caps the total deposit (security, pet, and last month's rent combined) at one month's rent, requires an interest-bearing account, and requires a signed move-in condition report.
The law itself
Frequently asked questions
How long does a landlord have to return a security deposit in Vermont?
14 days from the date you move out or the date the landlord discovers you moved out. The landlord must hand-deliver or mail the deposit and an itemized statement of deductions to your last known address, so leave a forwarding address. The only exception is a seasonal dwelling that is not your primary residence, where the landlord gets 60 days.
What happens if a Vermont landlord misses the 14-day deadline?
The landlord forfeits the right to withhold any portion of the deposit — the full amount is owed even if you caused damage. If a court finds the withholding was willful, the landlord owes double the amount wrongfully withheld plus your reasonable attorney fees and court costs. Vermont small claims court handles deposit disputes up to $10,000.
Is there a limit on security deposits in Vermont?
Not at the state level — Vermont statute sets no cap. But cities can regulate deposits by ordinance: Burlington and Brattleboro both cap total deposits at one month's rent, counting security, pet, and last-month's-rent deposits together. Burlington also requires the deposit to sit in an interest-bearing account with interest paid to you when you move out.
What can a landlord deduct from a security deposit in Vermont?
Only four things: unpaid rent, damage to the landlord's property beyond normal wear and tear (and not caused by events outside your control), unpaid utility charges you owed directly to the landlord, and the cost of removing property you abandoned. Routine repainting, carpet wear, and ordinary cleaning from normal living are wear and tear and cannot be charged.
Keep reading
Deposit deadlines are easy to miss — until they cost you triple.
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Start Free TrialThis page is general information, not legal advice. Statutes change — verify against the official text linked above or consult a local attorney before acting.