Security Deposit in Vermont
State-specific overview · Property & Real Estate
Landlords must return deposits within 30 days and pay interest; deposits are held in trust.
How Vermont treats Security Deposit
Vermont requires landlords to return security deposits within 30 days of lease termination with interest accrued at the rate set by state law. Deposits must be held in a separate interest-bearing account in trust for the tenant. The landlord must provide written notice of any deductions for damages or unpaid rent, and deductions are limited to actual damages beyond normal wear and tear. Vermont law is notably tenant-protective regarding deposit handling.
The general definition of Security Deposit
Money a tenant pays upfront to a landlord as a guarantee against damage or unpaid rent.
A security deposit is cash that a tenant gives to a landlord at the start of a lease, held as insurance against property damage or unpaid rent. The landlord must keep this money in a separate account and return it to the tenant when the lease ends, minus any deductions for legitimate damages or unpaid bills. Most states have strict rules about how quickly landlords must return deposits (often 30–45 days) and require them to itemize any deductions. If a landlord wrongfully keeps the deposit, the tenant can sue for the full amount plus penalties.
Read the full Security Deposit entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in Vermont.