9 V.S.A. § ___ § 4461
Security deposits
Operative Text
(a) A security deposit is any advance, deposit, or prepaid rent, however named, which is refundable to the tenant at the termination or expiration of the tenancy. The function of a security deposit is to secure the performance of a tenant’s obligations to pay rent and to maintain a dwelling unit. (b) 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. (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. (f) Upon termination of the landlord’s interest in the dwelling unit, the security deposit shall be transferred to the new landlord. The new landlord shall give the tenant actual notice of the new landlord’s name and address with a statement that the security deposit has been transferred to the new landlord. (g) A town or municipality may adopt an ordinance governing security deposits on dwellings. The ordinance shall be supplemental to and not inconsistent with the minimum protections of the provisions of this section. The ordinance may not limit how a security deposit is held. The ordinance may authorize the payment of interest on a security deposit. The ordinance may provide that a housing board of review constituted pursuant to 24 V.S.A. § 5005 may hear and decide disputes related to security deposits upon request for a hearing by a landlord or tenant. The board’s actions shall be reviewable under 24 V.S.A. § 5006. (Added 1985, No. 175 (Adj. Sess.), § 1; amended 1987, No. 116, § 2; 1991, No. 229 (Adj. Sess.), § 1; 2007, No. 176 (Adj. Sess.), § 45.)
Under 9 V.S.A. ch. 137 § 4461, a security deposit is any refundable advance payment collected at the start of a tenancy to secure a tenant's obligations around rent and property care. Landlords may keep all or part of the deposit only for specific reasons: unpaid rent, damage beyond normal wear and tear, unpaid utility charges owed to the landlord or utility, or costs to remove abandoned items. The deposit—along with an itemized written statement of any deductions—must generally be returned within 14 days of the landlord learning the unit has been vacated, or within 60 days for seasonal rentals. If a landlord misses that deadline willfully, they can be held liable for double the wrongfully withheld amount plus attorney's fees.
Plain English — not legal advice.
Operators subject to 9 V.S.A. ch. 137 § 4461 generally track the exact date a tenant vacates or the date they discover an abandonment, since the 14-day return clock starts from that moment. Compliant landlords document the condition of the unit carefully so that any deductions they make are tied to one of the four permitted categories—unpaid rent, damage beyond normal wear and tear, unpaid utility charges, or abandoned-item removal costs—and are reflected in a written itemized statement sent to the tenant's last known address by hand-delivery or mail. When ownership of a property changes hands, the outgoing landlord transfers the deposit to the new owner, who then provides the tenant with written notice of the new landlord's name, address, and confirmation that the deposit has been transferred.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 9 V.S.A. ch. 137 § 4461, tenants are entitled to receive their security deposit back—along with a written itemized statement of any deductions—within 14 days of the landlord learning the unit was vacated (or 60 days for seasonal rentals). If a landlord fails to meet that deadline, they forfeit the right to withhold any portion of the deposit, and a willful failure can expose them to liability for double the amount wrongfully kept, plus attorney's fees. Tenants who believe their deposit was improperly withheld may consider filing a complaint with a local housing board of review if one exists under their municipality's ordinance, or reaching out to a tenant-rights organization to understand the range of options available to them.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 18, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References In
Rules and statutes that cite this regulation