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Deposits

Security deposit law in Vermont

Vermont's cap, return deadline, itemization rule, and wrongful-withholding penalty, with the controlling statute linked.

4 min read

Short answer

Vermont sets no statutory limit on the security deposit a landlord may collect, and the deposit must be returned within 14 days. Wrongful withholding exposure is forfeit deductions; 2x for bad faith. The controlling text is Vt. Stat. tit. 9 § 4461, verified July 2026; confirm the current statute before acting, since legislatures amend deposit law and cities layer stricter rules on top.

No statutory limit. The return rule is 14 days. The controlling text is Vt. Stat. tit. 9 § 4461.

Shared move-in, deduction, and refund workflow: the national state-law hub.

Vermont's return deadline

14 days.

You have 14 days after the tenant moves out and returns possession to return the deposit with a written itemized statement of any deductions. Some seasonal or short-term rentals run a longer window, so confirm which applies.

The itemized statement rule

A written itemized statement of deductions is required within 14 days, and failing to send it forfeits your right to keep any of the deposit. The short clock makes an at-handover inspection essential.

Account and interest rules

Vermont sets no separate-account or interest requirement at the state level, though some towns add their own rules. Hold the deposit apart from operating funds regardless.

Exposure for wrongful withholding

Forfeit deductions; 2x for bad faith.

A landlord who fails to return the deposit or statement within 14 days forfeits the deductions, and a bad-faith withholding can reach twice the amount wrongfully withheld. The 14-day statement is the entire mechanism.

Vermont has no statutory deposit maximum

No statutory limit.

Compare Vermont with neighboring states

Verified against Vt. Stat. tit. 9 § 4461 and official state sources in July 2026. Before withholding money, check the current statute text or ask a local landlord-tenant attorney. General information, not legal advice.

Questions landlords actually ask

Does Vermont cap residential security deposits?
No statutory limit
What is the security deposit return deadline in Vermont?
14 days. You have 14 days after the tenant moves out and returns possession to return the deposit with a written itemized statement of any deductions. Some seasonal or short-term rentals run a longer window, so confirm which applies.
What itemization does Vermont require?
A written itemized statement of deductions is required within 14 days, and failing to send it forfeits your right to keep any of the deposit. The short clock makes an at-handover inspection essential.
What is the wrongful-withholding exposure in Vermont?
Forfeit deductions; 2x for bad faith. A landlord who fails to return the deposit or statement within 14 days forfeits the deductions, and a bad-faith withholding can reach twice the amount wrongfully withheld. The 14-day statement is the entire mechanism.