Vermont Security Deposit Law 2026: Limits, Deadlines & Deductions
- Does the 14 days include weekends? The statute says 14 days from the date the tenant vacates, without excluding weekends or holidays. Treat it as 14 calendar days and mail early.
- What if the tenant moves out without telling me? The clock runs from when the tenant vacates. If you discover an abandoned unit, document the date you confirmed vacancy — that's your best evidence of when the 14 days started.
- Can I deduct for repainting between tenants? Only if the paint damage goes beyond normal wear and tear. Routine repainting after a multi-year tenancy is the classic non-deductible item.
Vermont gives you one of the shortest clocks in the country — 14 days from the day the tenant vacates to return the deposit with a written deduction statement (9 V.S.A. § 4461(c)) — and pairs it with a harsh forfeiture rule: miss the deadline and you lose the right to withhold any of it. A willful failure costs double the amount wrongfully withheld plus attorney fees (9 V.S.A. § 4461(e)). Every section below is from Title 9, Vermont Statutes Annotated.
The short version: There is no legal cap on the deposit, but speed is everything. Within 14 days of move-out (60 days for a seasonal rental), hand-deliver or mail the deposit with a written statement listing every deduction. Miss the 14-day window and you forfeit all deductions — the tenant still gets the whole deposit back. Willfully keep money you shouldn't and you owe twice the wrongfully withheld amount plus the tenant's attorney fees.
The statute table
| Citation | What it says (one line) |
|---|---|
| 9 V.S.A. § 4461 | Vermont's security deposit statute; sets no maximum deposit amount. |
| 9 V.S.A. § 4461(b) | The deposit may be applied only to: unpaid rent; damage beyond normal wear and tear; utility charges the tenant owed the landlord; and expenses of removing abandoned possessions. |
| 9 V.S.A. § 4461(c) | The landlord must hand-deliver or mail the deposit with a written statement listing any deductions within 14 days of the tenant vacating — 60 days for seasonal rentals. |
| 9 V.S.A. § 4461(d) | Normal wear and tear — and damage from events beyond the tenant's control, like a flood — can never be charged against the deposit. |
| 9 V.S.A. § 4461(e) | Failure to return the deposit within 14 days forfeits the landlord's right to withhold any portion of it. |
| 9 V.S.A. § 4461(e) | Willful failure to return the deposit makes the landlord liable for double the amount wrongfully withheld, plus reasonable attorney fees and costs. |
| 9 V.S.A. § 4461(g) | No statewide interest requirement, but towns and municipalities may adopt ordinances requiring interest on deposits. |
| 9 V.S.A. § 4461 (as a whole) | No statute requires a separate bank account or a receipt at collection. |
Limits: how much can you charge?
No cap. Vermont sets no maximum security deposit. Because the return deadline is so tight, the practical risk of a large deposit isn't the amount — it's that 14 days is barely enough time to get contractor quotes. Keep deposits reasonable and start your damage assessment the day the tenant leaves.
The 14-day deadline, precisely
This is the number that defines Vermont: 14 days from the date the tenant vacates (§ 4461(c)). Hand-deliver or mail the deposit, and it must include the written statement listing any deductions. Two critical details:
- Seasonal rentals get 60 days. If the unit is rented seasonally, the deadline stretches to 60 days.
- Forfeiture is automatic. If you miss the 14 days, you forfeit the right to withhold any portion of the deposit. You can still sue the tenant separately for damages or unpaid rent — you just can't take it out of the deposit anymore.
Fourteen days leaves no slack for waiting on a plumber's invoice. Inspect on move-out day and calendar the deadline with the Security Deposit Deadline Finder immediately.
Never miss Vermont's 14-day clock. Miss it and you forfeit the right to withhold any portion of the deposit — there is no cure period, and seasonal rentals get no extra slack beyond their 60 days. The Security Deposit Disposition & Deadline Tracker ($14.95, one-time purchase) keeps your return deadlines, itemized deductions, and mailing dates in one spreadsheet so the clock never sneaks up on you.
Deductions and the itemized list
Vermont allows only four categories of deductions (§ 4461(b)): (1) nonpayment of rent, (2) damage beyond normal wear and tear, (3) utility charges the tenant was supposed to pay directly to you, and (4) expenses for removing the tenant's abandoned possessions. The written statement must list the deductions — amounts plus what they're for. Damage from events beyond anyone's control (storms, floods) is never deductible. Draft it with the Security Deposit Deduction Letter Generator on day one, not day thirteen.
Interest and where the money sits
Vermont has no statewide interest requirement and no separate-account rule — but § 4461(g) lets cities and towns adopt their own interest ordinances, so check your municipality's rules before assuming zero. Burlington-area landlords in particular should verify local requirements.
The penalty, spelled out
Vermont's two-tier penalty under § 4461(e):
1. Forfeiture of all deductions. Miss the 14-day (or 60-day seasonal) deadline and you lose the right to withhold any part of the deposit. The tenant gets it all back.
2. Double damages for willful failure. If the failure to return the deposit was willful, the landlord is liable for twice the amount wrongfully withheld, plus the tenant's reasonable attorney fees and costs.
"Willful" is the expensive word. A landlord who knew the deadline, kept the money anyway, and hoped the tenant wouldn't notice is the textbook case — and it doubles the bill.
FAQ
Does the 14 days include weekends?
The statute says 14 days from the date the tenant vacates, without excluding weekends or holidays. Treat it as 14 calendar days and mail early.
What if the tenant moves out without telling me?
The clock runs from when the tenant vacates. If you discover an abandoned unit, document the date you confirmed vacancy — that's your best evidence of when the 14 days started.
Can I deduct for repainting between tenants?
Only if the paint damage goes beyond normal wear and tear. Routine repainting after a multi-year tenancy is the classic non-deductible item.
What about a tenant who rented for the ski season?
Seasonal rentals get the 60-day deadline under § 4461(c). Make sure the lease clearly establishes the tenancy as seasonal.
Do I owe interest if my town requires it?
Check your municipal ordinances under the authority of § 4461(g). If your town adopted an interest rule, it applies regardless of the statewide silence. The Security Deposit Interest Calculator can run the numbers once you know the local rate.
Can I charge the tenant separately for damages after forfeiting the deposit?
Yes — forfeiture only kills your right to deduct from the deposit. You can still pursue damages or unpaid rent through a separate claim; you just can't net it against the deposit.
More security deposit guides
- Security deposit laws by state
- Utah security deposit law
- Virginia security deposit law
- Texas security deposit law
- Washington security deposit law
Last verified: September 27, 2026. This is general information, not legal advice. Verify with a licensed Vermont attorney before acting.