Security Deposit Return Deadlines & Deductions in Vermont
At a glance
| Governing law | 9 V.S.A. §§ 4451(5), 4461 |
|---|---|
| Deadline to return the deposit | 14 days from discovered vacancy or noticed move-out; 60 days for seasonal, non-primary residence (§ 4461(c)) |
| Itemized statement required? | Yes; written deductions statement with refund within the applicable return period (§ 4461(c)–(d)) |
| What can be deducted | Unpaid rent, qualifying damage beyond wear or tenant control, unpaid utilities or charges, abandoned-property removal (§ 4461(b)) |
| Maximum deposit amount | No statewide amount cap stated in § 4461 |
| Interest on the deposit? | No statewide duty; municipal ordinance may authorize interest (§ 4461(g)) |
| Penalty for a late/bad-faith withholding | Missed 14-day return and statement forfeits withholding; willful failure adds double wrongfully withheld plus fees and costs (§ 4461(e)) |
| Separate account or bond required? | No state account or bond duty; municipality may not limit how a deposit is held (§ 4461(g)) |
Requirements one by one
Return and itemization
Under 9 V.S.A. § 4461(c)-(d), a landlord must send the deposit with a written statement itemizing deductions within 14 days after discovering the tenant vacated or after the tenant's actual move-out date if the landlord received notice of that date. A seasonal rental not intended as the tenant's primary residence has a 60-day return period. Hand delivery or mailing to the tenant's last known address satisfies the delivery rule.
Deductions
Under § 4461(a)-(b), the deposit is defined and the landlord may retain it for unpaid rent; damage to the landlord's property unless caused by normal wear and tear or events outside the tenant's control; required but unpaid utility or other charges; and removal of articles the tenant abandoned. Section 4451(5) defines normal wear and tear as deterioration from reasonable use without negligence, carelessness, accident, or abuse by the tenant or specified others.
Deposit amount and holding
Section 4461 states no statewide deposit amount cap and imposes no interest or separate-account duty. Under § 4461(f)-(g), a change in landlord transfers the deposit with notice to the tenant; a municipality may authorize interest, but may not limit how a deposit is held.
Remedy
Under § 4461(e), a landlord forfeits the right to withhold a deposit by failing to return it with a statement within 14 days. A willful failure also brings double the amount wrongfully withheld plus reasonable attorney's fees and costs. Subsection (e) does not expressly extend its 14-day forfeiture wording to the 60-day seasonal return period, so the remedy for a seasonal delay needs separate analysis.
What trips people up
The alternate move-out-date trigger applies only when the landlord received notice from the tenant of that date (§ 4461(c)). Keep a record of that notice and of the address used for delivery; the statute permits mailing to the last known address under subsection (d).
Common questions
Can a landlord charge for normal wear? No. Section 4461(b)(2) excludes normal wear and tear from deductible property damage, and § 4451(5) defines that phrase.
Does a local interest ordinance change the state return deadline? Section 4461(g) allows a supplemental municipal ordinance consistent with the section's minimum protections. Check the applicable ordinance separately for interest or other local additions.
Statutes and sources
- 9 V.S.A. § 4461 — deposit definition, deductions, return, remedies and municipal authority. https://legislature.vermont.gov/statutes/section/09/137/04461 (accessed 2026-10-07)
- 9 V.S.A. § 4451(5) — normal-wear definition. https://legislature.vermont.gov/statutes/section/09/137/04451 (accessed 2026-10-07)
Source links
Every statute quoted above, linked, with the date we checked it.
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