How to Hold and Return a Security Deposit in Vermont

Managing a Security Deposit in Vermont

Vermont law does not impose a limit on how much you can charge as a security deposit. Many people choose to charge the equivalent of one month's rent.

Storing the Deposit

Vermont law does not offer any guidance on how to store a security deposit. Many people choose to keep it in a bank account separate from their personal finances.

Returning the Deposit

You must return your subtenant's security deposit within 14 days of the end of the sublease. You can use the security deposit to cover any unpaid rent at the end of the sublease, unpaid utilities owed to you, expenses related to removing a tenant's abandoned property from the unit, or to cover the cost of any damages to the unit that exceed normal wear and tear. You must provide your subtenant with a written, itemized list of any amount you plan to withhold from the deposit within 14 days of the end of the sublease. If you fail to do so, you lose your right to withhold any of the security deposit. If a court determines that you didn't return it on purpose, you may be held responsible for twice the amount you withheld plus attorney's fees.