Security Deposits

A rental agreement could include a security deposit. A security deposit is money the tenant gives to landlord to hold until the tenant moves out. 9 V.S.A. § 4461.

If the landlord holds a security deposit and sells the unit, the security deposit must be transferred to the new landlord. The new landlord has to notify the tenant that they hold it. 9 V.S.A. § 4461(f).

When a tenant moves out, if the tenant has met all of their duties, the landlord must return the security deposit to the tenant within 14 days of the date the tenant moved out. 9 V.S.A. § 4461.

As a tenant, these are steps you can take to get your security deposit back.

What you should do

Let your landlord know when you are out. Do this in person, when you give back the key, or do it by phone or text or email or letter. Keep a copy of your letter or text or email. Your landlord’s 14-day deadline to return your deposit or send you a statement does not start to run until he receives notice that you are out.
You should give your landlord your new mailing address so that you get your money back as quickly as possible. Even if you do not give your landlord your new address, your landlord is still required to send your security deposit and/or notice of withholding within 14 days by sending it to your last known address, even if that is the address of your old apartment. (Be sure to leave a forwarding address with the post office.)

What the landlord must do

Within 14 days after you notified the landlord that you have left the unit, the landlord must return your security deposit and/or notify you in writing why all or part of it will not be returned. 9 V.S.A. § 4461(c). Your landlord must hand deliver or mail your full deposit.

If the landlord wants to keep your deposit for the reasons the landlord can legally keep your deposit, the landlord must send a letter listing deductions from your deposit. If the deductions do not add up to the entire deposit, the landlord’s letter must include a check for the difference.

There are only four legal reasons the landlord can keep all or part of your security deposit, 9 V.S.A. § 4461 (b):

unpaid rent
damage to the unit. “Damage” means defects in walls, floors, appliances and fixtures caused by negligence, carelessness, accident, or abuse by the tenant or the tenant’s household members or guests. 9 V.S.A. § 4451(5).
unpaid utilities that your rental agreement called for you to pay
the cost of removing trash or other items you left in the unit

Your landlord cannot legally keep your security deposit for:

cleaning to prepare for a new tenant, such as carpet cleaning, removing scuff marks, or wear showing on high traffic areas such as light switches and door frames. You should leave the unit “broom clean.” There should not be spills on counter or floors, or splashes on walls. Appliances and fixtures should have been kept clean, and not show accumulation of grease, dust or soap scum. You should not leave things in the refrigerator. You should not leave trash. You should not leave pet waste.
“normal wear and tear.” Normal wear and tear means the deterioration that normally occurs based upon the reasonable use (including reasonable regular cleaning) of floors, walls, appliances and fixtures. So the landlord — not the tenant — is responsible for:
- painting or cleaning the unit between tenants
- cleaning the carpet or replacing it if it is old
- washing the windows
- cleaning the light fixtures, etc.

The amount of wear and tear and the amount of maintenance that can be considered reasonable will depend on the length of time you lived in the rental unit and the condition of the unit when you moved in. The law does not allow a landlord to use a security deposit to improve or upgrade the unit. If the carpet was worn when you moved in, the landlord cannot keep your deposit to replace the worn out carpet when you move out. The law also doesn’t allow the landlord to use your deposit to repair damage that was already there when you moved in.

Your rights if the landlord doesn’t refund your security deposit within 14 days

If your landlord doesn’t give you your security deposit or a statement within 14 days:

You are entitled to get all of the security deposit back. 9 V.S.A. § 4461(e).
If your landlord intentionally misses the deadline, you are owed double the amount of your security deposit. 9 V.S.A. § 4461(e).
Send a letter to your landlord demanding immediate return of your deposit. Use our sample letter.
- See the web page version of the sample letter.
- Our PDF file does not fully comply with all applicable guidelines for accessible digital documents. For the most accessible experience, use the web page above.
- Download a PDF version of a sample letter.
If your landlord still does not return your deposit, you can sue your landlord for return of the deposit. You can sue in small claims court, or the civil division.
- If your rental unit was in Burlington, rather than going to small claims court, you can file your security deposit case with the Housing Board of Review. In Burlington ask for a hearing by visiting the City of Burlington website or calling 802-865-7122.
- Remember, if you take your landlord to court, your landlord can bring claims against you if the landlord thinks you owe more than the amount of the withheld security deposit because you caused damage, or for the cost of unpaid utilities, trash removal or unpaid rent. Your copies of notifications, inspection checklists and photos, will help you prove to the court that the landlord had no cause to withhold your security deposit.

If your landlord keeps more of your security deposit than what you think is reasonable:

You can keep the money the landlord sends you and still try to get more of it returned by taking your landlord to court. In other words, you do not waive your right to contest the landlord keeping any of your security deposit by cashing a check for less than the total amount of the deposit.

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Your rights if the landlord doesn’t refund your security deposit within 14 days

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