| Quick Facts | Answer |
| Acceptable Deductions | Unpaid rent, utilities, late fees
Costs of damage Costs to remove abandoned property Cleaning costs |
| Return Deadline | 14 days |
| Itemized Deductions | Required |
| Penalty for Late Return | 2x Deposit + Court Costs + Attorneys’ Fees |
For laws on security deposit collections and holdings in Vermont, click here.
Some cities and counties may have regulations which are different from those presented here. Always check local laws.
Security Deposit Deductions in Vermont
Vermont allows these deductions from a security deposit:
- Unpaid rent, utilities, and late fees
- Costs of damage excluding normal wear and tear
- Costs to remove abandoned property
- Cleaning costs
Most states, including Vermont, do not have a legal limit on how much a landlord can charge for damages except that the charges must be reasonable and reflect actual landlord expenses.
If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant.
What Is Considered Normal Wear and Tear in Vermont?
Vermont, unlike many states, has a formal definition for “normal wear and tear.” This is what the law provides:
“Normal wear and tear” means the deterioration that occurs, based upon the reasonable use for which the rental unit is intended.
Examples include:
- Lightly scratched glass
- Faded flooring
- Lightly dirtied grout
- Loose door handles
- Stained bath fixtures
Vermont law defines “damage” as deterioration that occurs:
[From] negligence, carelessness, accident, or abuse of the premises or equipment or chattels by the tenant or members of his or her household or their invitees or guests.
Examples include:
- Heavily stained, burned, or torn carpets
- Broken tiles or windows
- Holes in the wall
- Missing fixtures
Can the Landlord Charge for Replacing the Carpet in Vermont?
Landlords can charge for replacing the carpet if it is damaged beyond normal wear and tear.
A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.
Can the Landlord Charge for Nail Holes in Vermont?
Vermont landlords can charge a tenant for nail holes if they damage the walls in a way that doesn’t demonstrate an ordinary and reasonable level of care.
Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.
However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage, and thus chargeable to the tenant.
Can the Landlord Charge a Cleaning Fee in Vermont?
Vermont law allows landlords to charge for the reasonable costs of cleaning limited to bringing the unit back to its original condition at the start of the lease, excluding normal wear and tear.
Can the Landlord Charge for Painting in Vermont?
Vermont landlords can charge for painting, except for normal wear and tear. For example, a landlord might be able to charge for:
- Damage to the paint beyond normal wear and tear
- Tenant repainting without the landlord’s consent
- Tenant repainting with consent, but not doing the work to a professional standard
Normal paint wear includes:
- Minor scrapes from daily use
- Fading due to sunlight
- Minor cracks in the original paint.
Landlords can charge for repainting if the damage is not the result of ordinary care. This includes stains, large or deep scratches, and water damage.
Can a Security Deposit Be Used for Last Month’s Rent in Vermont?
Vermont law does not forbid the security deposit from being used for any outstanding rent.
Landlords can include a provision in the lease agreement that the security deposit cannot be used for the last month’s rent until the tenant vacates the rental unit.
Security Deposit Returns in Vermont
Landlords must return a security deposit by mail or hand-delivery with an itemized statement of deductions, if any, to the tenant’s last-known address no later than 14 days after the tenant vacates the rental unit.
How Long Do Landlords Have To Return Security Deposits in Vermont?
Vermont landlords have 14 days after the tenant vacates the rental unit to return any unused portion of the security deposit.
If a tenant abandons a rental unit without giving notice, the landlord must return the security deposit within 14 days of learning that the tenant vacated.
Do Landlords Owe Interest on Security Deposits in Vermont?
Unlike in some states, such as New Jersey, landlords in Vermont do not owe interest on security deposits.
However, Burlington landlords are required to provide interest on held security deposits. The minimum rate is equal to the current interest provided by a Vermont bank passbook savings account.
How Do Landlords Give Notice in Vermont?
Written notice must be mailed or hand-delivered to the tenant’s last-known address and must include the amount of the security deposit due, if any, to the tenant, plus an itemized statement of deductions.
In Burlington, the security deposit return letter must state that the tenant has the right to request a hearing before the Burlington Housing Board of Review within 30 days of receiving the written notice.
Security Deposit Disputes in Vermont
If landlords do not return the security deposit within the 14-day period, tenants can file for damages in court up to twice the amount of the deposit plus court costs and attorneys’ fees.
To recover the full amount of damages, tenants need to prove that the landlord’s failure to return the security deposit or written statement of deductions was intentional.
Tenants can also take legal action against a landlord for:
- Failure to provide an itemized statement when deductions are made
- Unreasonable deductions
How Can Tenants File a Dispute for a Security Deposit in Vermont?
If a landlord fails to return the security deposit, the tenant can file a dispute in Small Claims Court if the amount of damages is less than $5,000. If the amount is greater, the tenant must file a regular civil case.
If the rental unit is in Burlington, you can request a free hearing before the Housing Board of Review. However, the request must be filed within 30 days of receiving written notice from the landlord. You may be able to resolve your dispute without going to Small Claims Court.
A small claims case must be filed within 6 years. An attorney is not required but permitted. Cases are filed in the county where the property is located. The filing fee is $65 or $90 depending on your claim amount.
Sources
- 1 Vt. Stat. tit. 9 § 4461(b)
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The landlord may retain all or a portion of the security deposit for:
(1) nonpayment of rent;
(2) damage to property of the landlord, unless the damage is the result of normal wear and tear or the result of actions or events beyond the control of the tenant;
(3) nonpayment of utility or other charges that the tenant was required to pay directly to the landlord or to a utility; and
(4) expenses required to remove from the rental unit articles abandoned by the tenant.
Source Link - 2 Vt. Stat. tit. 9 § 4451(5)
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“Normal wear and tear” means the deterioration that occurs, based upon the reasonable use for which the rental unit is intended, without negligence, carelessness, accident, or abuse of the premises or equipment or chattels by the tenant or members of his or her household or their invitees or guests.
Source Link - 3 Vt. Stat. tit. 9 § 4461(c) - (e)
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(c) A landlord shall return the security deposit along with a written statement itemizing any deductions to a tenant within 14 days from the date on which the landlord discovers that the tenant vacated or abandoned the dwelling unit or the date the tenant vacated the dwelling unit, provided the landlord received notice from the tenant of that date. In the case of the seasonal occupancy and rental of a dwelling unit not intended as a primary residence, the security deposit and written statement shall be returned within 60 days.
(d) The landlord shall comply with this section by hand-delivering or mailing the statement and any payment required to the last known address of the tenant.
(e) If a landlord fails to return the security deposit with a statement within 14 days, the landlord forfeits the right to withhold any portion of the security deposit. If the failure is willful, the landlord shall be liable for double the amount wrongfully withheld, plus reasonable attorney’s fees and costs.
Source Link - 4 Burlington Code of Ord. § 18-120(a)(1)
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An owner may require a reasonable deposit as a condition for the rental, lease or occupancy of a rental unit as a dwelling as security against damage beyond normal wear and tear to the premises which is attributable to the tenant, against nonpayment of rent, against nonpayment of utility or other charges which the tenant was required to pay directly to the landlord or to a utility, and against expenses required to remove from the rental unit articles abandoned by the tenant. This deposit may not exceed the amount of one month’s rent for the unit rented and shall be held by the owner in an interest-bearing account, with an interest rate at least equivalent to a current Vermont bank passbook savings account. This deposit shall not be used by the tenant as the last month’s rent unless otherwise specified in a written lease agreement between the parties.
Source Link - 5 Burlington Code of Ord. § 18-120(e) & (f)
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(e) A tenant, upon receiving notice of the owner’s intent to withhold any part of the deposit because of the reasons specified in subsection (c) of this section, may object and request a hearing before the housing board of review for a review of the reasonableness of the owner’s deductions. The request shall be submitted in writing by the tenant to the office of the city clerk, which shall immediately forward it to the clerk of the housing board of review. Alternatively, it shall also be acceptable for requests to be submitted directly to the clerk of the housing board of review. The request shall be submitted in writing by the tenant to the office of the city clerk within thirty (30) days of receipt of notice of the opportunity to request a hearing or, in the absence of such notice, within forty-four (44) days of the date the tenant vacated or abandoned the rental unit. Hearing shall be set and held by the board in the same manner as provided in Sections 18-48 through 18-59 for the review of an action of an inspector. The board shall hold a hearing, take evidence, and may visit the premises in question for on-site inspection. The board shall make findings and conclusions regarding the reasonableness of the owner’s deductions from the deposit. The board shall order that all, part or none of the portion of the deposit which is withheld be retained by the owner or returned to the tenant. The tenant shall receive all remaining deposit monies and interest beyond the cost of the approved deductions. The board’s action shall be reviewable as provided in Section 18-59.
(f) An owner or a tenant may request a hearing before the housing board of review in order to resolve other issues related to security deposits which are specifically addressed by this section. Such hearings shall be requested, set and held as provided in subsection (e) of this section.
Source Link - 6 Vt. Stat. tit. 12 § 5531(a)
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The Supreme Court, pursuant to section 1 of this title, shall make rules under this chapter applicable to such Court providing for a simple, informal, and inexpensive procedure for the determination, according to the rules of substantive law, of actions of a civil nature of which they have jurisdiction, other than actions for slander or libel and in which the plaintiff does not claim as debt or damage more than $10,000.00. Small claims proceedings shall be limited in accord with this chapter and the procedures made available under those rules. The procedure shall not be exclusive but shall be alternative to the formal procedure begun by the filing of a complaint.
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