Vermont security deposit account for landlords
Easily collect and manage deposits for every property with dedicated security deposit accounts.
Why use a security deposit account in {{ state }}
Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.
Benefits for property
owners
Repair and maintenance
Covers property damage such as paint, carpet, or floor damage, including costs caused by pets.
Fund separation
Meet state requirements for holding deposits in a dedicated tenant security deposit account.
Streamlined returns
Simplifies refunding tenants while accounting for deductions like cleaning or unpaid utilities.
Benefits for tenants
Fair protection
Funds are protected from misuse, covering only actual repair costs like cleaning, carpet replacement, or floor damage.
Transparency on deductions
Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
Savings potential
Deposits may be held in a tenant security deposit account or rental deposit account that earns security deposit interest, helping tenants recover more than they put in.
{{ state }} security deposit account
A security deposit escrow account in Vermont isn’t mandated. But, opening a separate security deposit bank account in Vermont is a best practice for clean record-keeping. Keeping a tenant's security deposit in Vermont separate from personal funds helps avoid legal disputes and makes the tenant's move-out process easier.
{{ state }} security deposit
limits
There is no statewide maximum security deposit Vermont landlords can charge, though cities like Burlington cap deposits at one month's rent. Currently, the average security deposit ranges from $1,800 to $2,200, reflecting typical monthly rent prices across the state.
{{ state }} security deposit interest
State law security deposit rules don’t mandate paying interest on security deposits in Vermont. There is also no set security deposit interest rate. But, it’s best to confirm if specific municipality rules exist for paying interest on the tenant deposit.
Go beyond standard security deposit accounts
Collect, return, and track deposits by tenant and
property, even when funds are held in external accounts.
{{ state }} security deposit accounts
Hold each security deposit in separate non-interest or interest-bearing accounts that earn up to [v="apyvalue"] APY².
Unlimited accounts for all entities
Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.
Free online payments
Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.
Automated bookkeeping
Track and tag payments to the right tenant and property — automatically.
Essentials for every door
Everything you need for every part of the rental process.
Lease creation and e-sign
Upload or create and e-sign state-specific leases online.
Free tenant screening
Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.
Property-specific accounts
Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.
{{ state }} security deposit rules
No state limit; 1 to 2 months' rent recommended
No
No escrow account mandated; Separate savings account recommended
Unpaid rent, utilities, repairs, lease violations, and cleaning costs
14 days (60 days for seasonal occupancies)
Additional resources
ARTICLE
How to collect security deposits
FAQs
How much security deposit can a landlord charge in Vermont?
There’s no Vermont security deposit limit on how much you can charge for a security deposit. However, many landlords choose to collect an amount equal to one to two months’ rent. It is also common to request the first and last month's rent plus a security deposit to ensure full coverage.
Is interest required on tenant security deposits in Vermont?
There is no statewide Vermont security deposit interest requirement. While there is no mandate for a specific landlord-tenant security deposit bank account in Vermont, keeping funds in a separate account is recommended for clear record-keeping.
How should I issue a security deposit receipt to tenants in Vermont?
Landlord's rights security deposit rules don’t require you to issue a written receipt, but it’s considered a best practice. Include the date, amount, and the address of the house rental, apartment, or condo. If the property is in Burlington, you may be required to disclose the location of the landlord-tenant security deposit bank account in Vermont, where the funds are held.
How many days to return a security deposit in Vermont?
State law allows you to return the tenant's security deposit in Vermont within 14 days of the date the tenant vacates. For seasonal occupancies, this timeline extends to 60 days.
What can a landlord deduct from a security deposit in Vermont?
Per landlord rights and security deposit rules, funds may be withheld for unpaid rent, utilities, damage beyond normal wear and tear, and cleaning costs for a house, apartment, or condo rental. If you fail to return the fund within the deadline or provide an itemized list of deductions, you may be liable for double damages plus attorney fees.
Can a security deposit be used for unpaid rent in Vermont?
Yes, you can use a security deposit to cover unpaid rent in Vermont.
Can landlords keep a security deposit for breaking a lease in Vermont?
If a tenant is breaking lease terms by moving out early, the landlord's security deposit Vermont funds can be applied to the rent owed for the remainder of the term, provided you make a reasonable effort to re-rent the unit.
