Vermont security deposit rules.
The Vermont rules for residential security deposits in plain English: how much can be charged, how fast it comes back, whether interest is owed, and what catches operators out.
Last reviewed · Statute: Vt. Stat. Ann. tit. 9, § 4461 · Not legal advice
How much can be charged
No statutory limit on the deposit amount.
When it has to come back
14 days from termination is the default; 60 days for seasonal tenancies. Itemised deductions required.
Interest
No interest is required.
Where the money has to sit
No segregation requirement.
What catches operators out
- Burlington and a handful of other municipalities add local restrictions.
- Bad-faith retention triggers double damages plus reasonable attorney’s fees.
What this looks like with Standby in Vermont.
When a resident takes a Standby certificate there is no cash deposit to hold, so the cap, the return deadline and the interest rules above have nothing to attach to. You are covered up to the full deposit and draw on it when you need to.
When a resident pays cash instead, Standby handles that deposit under your lease and Vermont law, so your team is not tracking return deadlines by hand.
This page summarises the most common single-family and multifamily residential rule in Vermont. Furnished units, senior leases, mobile-home tenancies and short-term rentals can differ, and city ordinances may override the state default. Check the statute before relying on a figure for a specific lease.