What deductions can Landlord make from the amount of security deposit in Vermont?

Full question:

The tenant has vacated my rental property in Vermont last week. I am required to return the security deposit to my tenant. Under the law prevailing in Vermont, what are the deductions that a landlord can make from the amount of security deposit?

• Category: Landlord Tenant
• Subcategory: Security Deposit
• Date: 04/07/2025
• State: Vermont

Answer:

In Vermont, per 9 V.S.A. § 4461, the landlord may make deductions from the security deposit for nonpayment of rent or damage to property of the landlord or expenditure made for removing the tenant’s abandoned articles from the rental property.

The landlord is entitled to retain the whole amount or a part of the security deposit for the reasons given in 9 V.S.A. § 4461.

9 V.S.A. § 4461 reads:
 

“(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 which 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.”