Security deposit interest in Vermont
No — Vermont does not require landlords to pay interest on security deposits.
There is no interest to calculate — here is what does apply
Vermont sets no interest requirement, so there is no figure to work out. The rules below are the ones that decide whether you get your deposit back in full, which is usually the larger sum anyway.
Deadline to return your deposit
14 days.
Within 14 days of the last day of occupancy, or within 14 days of the date the landlord discovers the tenant has abandoned the unit, whichever is later. Where the rental is seasonal and not intended as a primary residence the period is 60 days.
Miss it and the consequences below start to apply.
What to do next
- Give your landlord a written forwarding address. Several states make the return duty conditional on it, and Vermont's rules are summarised below.
- Photograph the unit at move-out, dated, before you hand back the keys. The dispute is almost always about condition.
- If the deadline passes, put the request in writing and cite 9 V.S.A. Sec. 4461. Keep a copy of what you sent and when.
Not legal advice. This is general information, not legal advice. Security deposit laws change and vary by jurisdiction. Verify with the cited statute or consult a licensed attorney in your state before taking action.
What does Vermont law actually say?
Vermont does not require landlords to pay interest on residential security deposits. The statute contains no interest provision, imposes no escrow or separate account requirement, and sets no cap on the deposit amount at state level, though some municipalities regulate deposits locally. The landlord must return the deposit together with a written statement itemising any deductions within 14 days of the last day of occupancy, or within 14 days of the date the landlord discovers the tenant has abandoned the unit, whichever is later.
Where the rental is seasonal and not intended as a primary residence the period is 60 days. Deductions are limited to unpaid rent, damage to the premises other than normal wear and tear, unpaid utility or other charges the tenant agreed to pay, expenses required to remove items the tenant left behind, and unpaid amounts owed under a municipal ordinance. The landlord must hand deliver or mail the statement and balance to the tenant's last known address.
Where multiple tenants share a unit and there is no agreement on apportionment, the landlord may return the deposit to any one of them.
What if your landlord does not comply?
No interest obligation, so no interest penalty. A landlord who fails to return the deposit with the itemised statement within 14 days forfeits the right to withhold any portion of it. Bad faith retention makes the landlord liable to the tenant for double the amount wrongfully withheld, plus reasonable attorney fees and costs.