Vermont Landlord-Tenant Law 2026: The Plain-English Guide
Vermont runs its rentals under 9 V.S.A. Chapter 137 (§§ 4451–4469), with evictions handled as ejectment actions under 12 V.S.A. Chapter 169 in the Civil Division of Superior Court. The headline facts: Vermont currently has no statutory cap on security deposits (a 2026 House bill would impose a two-month cap, but it is not yet law), a tight 14-day deposit return, a 60-day written notice requirement for rent increases — the longest in the country — and a tiered eviction-notice system that runs from 14 days for nonpayment all the way to 90 days for no-cause termination of long tenancies. This is a tenant-protection-forward state: budget time, not just money, into every compliance step.
2026 legislative watch: H.772, a rental-law overhaul, passed the Vermont House in early 2026. Among other things it would cap security deposits at two months' rent (plus a separate pet deposit), require 50% of the deposit returned before lease end, lengthen many no-cause notices to 90 days, and limit rent increases to once per 12 months. It had not become law as of September 2026 — but read this guide with an eye on it, because several of these provisions may land.
Security deposits
- No statutory cap (for now) — Vermont currently places no limit on the amount a landlord may collect as a security deposit (§ 4461). Municipalities may adopt their own ordinances, so check local rules in Burlington-area towns. Don't let the lack of a cap fool you: a deposit so large it looks like a buy-in can be challenged as unconscionable, and market norms run one to two months' rent.
- Return within 14 days with a written itemized statement of every deduction (§ 4461(c)). The clock runs from when you learn the tenant vacated — so if a tenant ghosts, document the discovery date. Seasonal/non-primary residences get 60 days.
- Allowed deductions: (1) unpaid rent; (2) damage beyond normal wear and tear; (3) unpaid utility charges the tenant owed directly to you; and (4) expenses of removing abandoned property (§ 4461(b)). Cleaning beyond normal use is handled through the damage prong — document with photos at move-in and move-out. See move-in/move-out inspection checklist.
- The penalty is steep: miss the 14-day deadline and you forfeit the right to withhold any part of the deposit. Willfully withhold and you owe twice the deposit plus the tenant's attorney's fees (§ 4461(e)). With a no-cap deposit, double damages on a large deposit is a serious number — treat the 14 days as non-negotiable.
- Interest: no statewide interest requirement, but towns may adopt ordinances authorizing interest payments on deposits (§ 4461(g)) — check your municipality.
- Application fees are prohibited — Vermont bans rental application fees outright (§ 4456a). You may run background checks, but charge the applicant nothing for the privilege.
Use our Security Deposit Deadline Finder and deductions guide.
Rent rules
- No statewide rent control — but no preemption either. Vermont has no rent-control law, and unlike many states it does not prohibit cities and towns from creating their own. In practice no town currently does, but the authority exists — another reason to watch local ordinances.
- Rent-increase notice: 60 days, in writing — landlords must give at least 60 days' notice before raising rent (§ 4455(b)), the longest statutory increase-notice period in the U.S. On month-to-month tenancies, plan increases two months ahead and send them in writing with the effective date. See how to raise rent legally.
- Rent is due on the date the lease sets, without demand or notice (§ 4455(a)). Make the due date explicit — don't rely on defaults.
- Late fees are uniquely constrained: Vermont has no late-fee statute, but the 1991 Vermont Supreme Court decision in Highgate Associates v. Merryfield holds that late fees charged as penalties are unenforceable — a fee is allowed only as actual compensation for the landlord's real costs from the late payment. In practice: if you charge late fees at all, keep them small, tie them to documented costs, and write the justification into your records. See how to handle late rent.
- No mandatory grace period: the statute sets no grace period. Write any grace period into the lease rather than assuming one exists.
Eviction in Vermont
Self-help evictions are illegal — no lockouts, no utility shutoffs. Vermont landlords bring an ejectment action in the Superior Court, Civil Division, after serving the correct statutory notice (§ 4467). Vermont's notice periods are counted from the date of actual notice (hand delivery, or three days after first-class/certified mailing under the statutory presumption), and the notice must state the termination date, not just a number of days. One more trap: after the termination date, you have only 60 days to file the ejectment action.
- Nonpayment: 14 days' written notice; the tenancy survives if the tenant pays or tenders all rent due through the end of the rental period. Accepting partial payment does not waive your remedies (§ 4467(a)).
- Material lease violations: 30 days' written notice, with an opportunity to cure (§ 4467(b)(1)).
- Criminal activity, illegal drugs, or violence threatening other residents' health or safety: 14 days', no separate right to cure (§ 4467(b)(2)).
- No-cause termination (no written agreement): 60 days for tenants resident two years or less; 90 days for residents of more than two years (§ 4467(c)(1)). With a written agreement, no-cause termination at lease end runs 30 days (two years or less) or 60 days (more than two years). Note: terminating for no cause cannot be retaliation for the tenant exercising their rights.
- Periodic tenancies: 30 days for month-to-month (§ 4467(e)); 21 days for week-to-week (§ 4467(c)(2)). Sale of the property: 30 days (§ 4467(d)).
- Paperwork is everything: with tiered deadlines, actual-notice counting, and a 60-day filing window, Vermont evictions reward landlords who calendar carefully and document service precisely. See our lease agreement guide.
Full process: how to evict a tenant.
Lease termination and entry
- No-cause is expensive in time, not money. For long-tenured tenants, 90 days of notice is the price of a no-fault exit — plan non-renewals a full quarter ahead. Vermont also has an implied duty to mitigate: you must make a reasonable effort to re-rent after a tenant breaks a lease rather than sitting on an empty unit and billing the full term (see tenant breaking a lease).
- Entry requires 48 hours' notice, and only between 9 a.m. and 9 p.m., for non-emergency purposes such as repairs, inspection, or showing (§ 4460). Emergencies allow immediate entry. Log every entry: date, method of notice, reason, time in and out.
- Active military tenants may terminate early under federal SCRA protections; also write an early-termination clause with a defined fee so the default isn't a lawsuit.
Repairs and habitability
- Vermont requires landlords to comply with applicable health and housing codes and provide a habitable unit — adequate heat, water, and safe systems (§ 4457). The duty is nonwaivable.
- Tenants get two real remedies. After written notice to you: (1) for minor defects you're given 30 days, after which the tenant may repair and deduct the actual reasonable cost up to one-half month's rent (§ 4459); (2) for major health-code violations, the tenant may withhold rent after giving you notice and an opportunity to fix — and can seek injunctive relief plus damages, costs, and attorney's fees (§ 4458).
- The practical upshot: Vermont tenants have sharper repair weapons than in most states, so your maintenance channel is a legal asset. Give every tenant a written request method at move-in, date-stamp every report, and acknowledge within 48 hours. See how to handle maintenance requests.
- Retaliation is prohibited — you cannot retaliate against a tenant for complaining about habitability, reporting code violations, or exercising rights under the chapter (§ 4468).
Discrimination
The federal Fair Housing Act applies in full, and Vermont's Fair Housing and Public Accommodations Act (9 V.S.A. § 4503) adds protected classes: sexual orientation, gender identity, marital status, and age — and it also bars housing discrimination based on receipt of public assistance (including Section 8 vouchers). That last one matters: in Vermont, refusing a Section 8 tenant can be illegal. Screen every applicant with identical written criteria, document decisions, and see our fair housing guide and Section 8 landlord guide.
Practical tips for small landlords
- Calendar the 60-day increase notice now. Two months of lead time is the single most-missed deadline for small Vermont landlords — set a recurring reminder 75 days before any planned increase.
- Cap your own deposits. With no statutory cap today but a two-month cap likely under H.772, collecting one to two months now keeps you market-normal and future-proof. Remember: double damages scale with the deposit size.
- Write the late fee out of your lease or keep it tiny. The Highgate rule makes standard $50–$100 penalty-style late fees unenforceable — and listing an unenforceable fee undermines the rest of your lease.
- Plan no-cause exits a quarter ahead. 60–90 day notice periods plus court scheduling mean a no-fault turnover can take four to six months end to end. For deposit and small disputes, Vermont's small-claims division handles cases up to $7,500 — know your county's filing process before you need it.
The bottom line
Vermont protects tenants more than most states small landlords operate in: no deposit cap but a brutal 14-day return, 60-day rent-increase notice, penalty-style late fees struck down by the state supreme court, application fees banned, and a 90-day no-cause notice for long-tenured tenants. The tenant repair remedies — repair-and-deduct and health-code rent withholding — are real and statutory. The 2026 H.772 overhaul would make this stricter still (two-month deposit cap, annual increase limits), so build your processes for the stricter world now: one-to-two-month deposits, written 60-day increase notices, actual-cost late fees or none, 48-hour entry logs, and a fast, documented maintenance channel. Do that, and Vermont's complexity becomes a moat rather than a minefield.
This is general information, not legal advice. Consult a Vermont landlord-tenant attorney for specific situations.