Vermont Landlord Tenant Laws

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DISCLAIMER

This article provides general information and is not legal advice. For accuracy and specific guidance on landlord-tenant laws, consult an attorney before making any decisions or taking action.

Overview

DEPOSIT

  • No statute limiting maximum security deposit amounts in Vermont - however, local ordinances may have their own limits.
  • Landlords have 14 days to return the deposit after move out.
  • Landlords can deduct repairs beyond normal wear and tear, unpaid rent, removal of abandoned property, and utilities.

RENT CONTROL

  • Connecticut state law forbids local governments from enacting rent control legislation.
  • Landlords must provide 'reasonable' notice before raising the rent.

NOTICE OF ENTRY LAWS

  • Landlords must give at least 48 hours notice before entering the premise for repairs or inspections
  • Notice requirements are waived in the case of an emergency.

RE-KEYING LAWS

  • No statute.

RENTAL AGREEMENT

  • Oral lease agreements are allowed.
  • It is always advisable to have a written lease, even for shorter term leases.

LATE FEES & GRACE PERIODS

  • In Vermont, landlords can impose a late rent of $20.00 or 20% of a rental payment, whichever is greater,
  • There is a mandatory 5 day grace period.

SMOKING LAWS

  • It is legal for owners and managers to ban smoking on and in properties.

PET LAWS

  • Pet deposits are generally allowed in Vermont but may be restricted by local ordinances.

SECTION 1

1. Vermont Landlord-Tenant Rights and Responsibilities 

Vermont's landlord-tenant laws, primarily encapsulated in the Uniform Residential Landlord and Tenant Act, delineate essential rights and obligations for both parties involved in rental agreements.

Vermont Landlord Rights

Landlords in Vermont possess specific rights that facilitate property management while safeguarding against legal complications. Key rights include:

  • Collecting Rent: Landlords can charge and receive rent payments as stipulated in the lease agreement.
  • Security Deposits: They may collect security deposits to cover potential damages or unpaid rent.
  • Eviction: Landlords can pursue legal eviction for lease violations or non-payment of rent (Vt. Stat. tit. 9, § 4467).

Vermont Landlord Responsibilities

Landlords are also tasked with several duties to ensure tenant safety and comfort:

  • Habitability: They must provide a safe, habitable living environment free from discrimination (Vt. Stat. tit. 9, § 4457).
  • Repairs: Landlords are required to address repair requests within a "reasonable time" after receiving written notice.
  • Security Deposit Return: They must return security deposits within 14 days of lease termination, along with an itemized list of deductions if applicable (Vt. Stat. tit. 9, § 4461). 

Vermont Tenant Rights

Tenants in Vermont enjoy various rights that protect their living conditions:

  • Safe Housing: Tenants have the right to reside in properties that comply with health and safety codes.
  • Timely Repairs: They can expect repairs to be made within a reasonable timeframe after notice (Vt. Stat. tit. 9, § 4458).
  • Legal Recourse: Tenants may take legal action if landlords violate lease terms.

Vermont Tenant Responsibilities

Tenants also bear responsibilities to maintain the property and ensure the landlord's financial interests are protected:

  • Timely Rent Payments: Rent must be paid on time as per the lease agreement.
  • Maintenance: Tenants should keep the unit clean and report any necessary repairs promptly.
  • Non-Disturbance: They must not disturb other tenants or cause damage to the property (Vt. Stat. tit. 9, § 4456).

Required Notices Before Entry

Landlords may enter rental units for maintenance, inspections, or showings but must provide at least 48 hours notice unless it's an emergency (Vt. Stat. tit. 9, § 4460). Entry should occur during reasonable hours.

Late Fees for Rent and Grace Periods in Vermont

In Vermont, a landlord can impose a late rent of $20.00 or 20 percent of a rental payment, whichever is greater, for each service period that an occupant does not pay the rent. However, in order to charge this late fee the fee must be clearly outlined with the conditions for imposing it in the lease agreement.

There is a mandatory grace period for late fees of 5 days in Vermont.

( 9 V.S.A. § 3903)

SECTION 2

2. Vermont Rent Increase Laws

Vermont does not impose statewide rent control laws; however, landlords must adhere to specific procedures when increasing rent. Proper notice is essential, ensuring transparency and allowing tenants to prepare for changes. 

Notice Required to Raise Rent in Vermont

Landlords must provide written notice before implementing a rent increase:

  • Statewide: A minimum of 60 days' notice is required for properties outside Burlington.
  • Burlington: Due to local ordinances, landlords must give at least 90 days' notice.

Notices should specify the new rent amount and can be delivered via certified mail, hand delivery, or as stipulated in the lease. Email notifications do not qualify as proper notice under Vermont law (9 V.S.A. § 4455).

Limitations to Vermont Rent Increase Laws

While landlords can raise rents without a maximum limit, certain restrictions apply:

  • Retaliation and Discrimination: Rent increases cannot retaliate against tenants exercising legal rights or be based on discriminatory practices.
  • Fixed-Term Leases: Generally, rent cannot be increased during the term of a fixed lease unless explicitly allowed in the agreement.

These regulations ensure that tenants are protected from sudden and unjustified rent hikes while allowing landlords to manage their properties effectively.

SECTION 3

3. Vermont Rental Application Laws

Vermont's rental application laws foster a transparent housing process for both landlords and tenants. Here’s an overview of key components.

Vermont Tenant Screening Laws: Overview

Many landlords in Vermont are not fully aware of the state's tenant screening laws, leaving them exposed to potential tenant issues and even legal trouble. Understanding the details of these regulations is crucial for navigating the rental process smoothly and protecting your interests as a landlord.

Key Vermont tenant screening laws include:

  • No application fees: Vermont landlords are prohibited from charging any application fees.
  • No limit on security deposits: There is no cap on the amount landlords can request as a security deposit.
  • Interest-bearing account: Security deposits must be held in a separate, interest-bearing account.

By staying informed about Vermont's tenant screening laws, landlords can simplify the application process and attract better tenants, avoiding potential pitfalls. Whether you're an experienced landlord or just starting, keeping up with the latest legal requirements is essential for a successful rental business.

Maximum Application Fees In Vermont

Vermont prohibits landlords from charging application fees for residential rentals (9 V.S.A. §  4456a). Thus, landlords cannot legally impose such fees when screening applicants. 

Fair Housing Laws In Vermont

While Vermont lacks specific state laws on housing discrimination, the federal Fair Housing Act (FHA) prohibits discrimination based on race, nationality, religion, sex, familial status, and disability. Consequently, landlords must avoid requesting this information on rental applications.

Notice of Screening Criteria In Vermont

Landlords must disclose the criteria used for tenant screening and obtain the applicant's acknowledgment signature to ensure transparency.

Tenant Background Check In Vermont

Landlords may conduct various background checks—credit, eviction, and criminal history—without charging an application fee. However, written consent is required for credit checks under the Federal Credit Reporting Act (FCRA).

Essential Components of a Rental Application

A comprehensive rental application should include:

  • Personal Information: Full name and contact details.
  • Rental History: Previous addresses and landlord references.
  • Employment and Income: Current employment details and income verification.
  • Credit Check Consent: Written permission for credit checks.
  • Personal References: Contacts who can vouch for the applicant's character.
  • Background Check Consent: Acknowledgment for background checks.

Important Disclosures

Before signing a lease, landlords must inform tenants about:

  • Property conditions and known hazards.
  • Utility responsibilities and security deposit terms.
  • Smoking policies.
  • Any applicable rent control rules (though Vermont currently has none).

These guidelines ensure that both parties understand their rights and responsibilities in the rental process. For further details, refer to Vermont’s Residential Rental Agreements Act (RRAA).

Source: Free Vermont Rental Application Form | LawDistrict

SECTION 4

4. Vermont Security Deposit Laws

Vermont's security deposit laws, found in Title 9, Chapter 137, provide essential guidelines for both landlords and tenants regarding the handling of security deposits in residential rentals, including apartments and single-family homes.

What Is The Maximum Security Deposit Allowed In Vermont?

There is no maximum security deposit limit specified under Vermont Statute 9 V.S.A § 4461, the statute does not impose a cap on the amount that a landlord can charge as a security deposit.  

That being said, local ordinances may differ from state laws. For example, Burlington has its own ordinance regulating security deposits which limits the total amount a landlord can ask for to no more than one month’s rent.

Are Pet Deposits Allowed In Vermont?

Vermont Statute 9 V.S.A § 4461 does not specifically mention pet deposits. However, since a security deposit is defined broadly in subsection (a) as "any advance, deposit, or prepaid rent," a pet deposit would likely be considered part of the total security deposit. Vermont law allows security deposits to cover damage caused by the tenant, including pet-related damage, as long as it’s beyond normal wear and tear (subsection (b)(2)).

Again it’s important to check with local ordinances. For example, Burlington law limits security deposits and also caps the amount a landlord can ask for as a pet deposit to half a month's rent. 

Importantly, landlords cannot charge a pet deposit for assistance animals related to disabilities.

What Can Landlords Deduct From The Security Deposit In Vermont?

Landlords can deduct from the security deposit for:

Do Landlords Need To Provide An Itemized List of Deductions In Vermont?

Yes. Landlords must return the security deposit along with a written, itemized statement of any deductions within 14 days of discovering the tenant vacated or abandoned the property. For seasonal rentals not used as a primary residence, this must be done within 60 days. (9 V.S.A. § 4461(c))

How Must Landlords Hold Security Deposits In Vermont?

Again Vermont statutes do not explicitly state how the security deposit must be held, and some municipalities may adopt their own ordinances governing how security deposits are managed. 9 V.S.A. § 4461(g) allows for ordinances that may require landlords to pay interest on deposits, but they may not limit how a security deposit is held.

How Long Do Landlords Have To Return The Security Deposit In Vermont?

Landlords must return the security deposit within 14 days after the tenant vacates, provided the tenant supplies a forwarding address. For seasonal rentals that are not primary residences, the deadline is extended to 60 days. If this timeline is missed, the landlord forfeits the right to withhold any part of the deposit. (9 V.S.A. § 4461(c))

Do Landlords Need To Pay Interest On Security Deposits In Vermont?

State law does not require landlords to pay interest on security deposits. However,  9 V.S.A. § 4461(g)  allows towns or municipalities to adopt ordinances that may authorize the payment of interest on security deposits, though this is not a statewide requirement.

SECTION 5

5. Vermont Leasing Agreements

A rental agreement, or lease, is a legally binding document in Vermont that outlines the terms between a landlord and tenant. Understanding the key components can help both parties avoid conflicts and ensure a smooth rental experience.

Key Components of a Vermont Lease Agreement

  • Identification of Parties: The lease must list the full names and contact information of both parties, ensuring accountability and clarity regarding responsibilities (9 V.S.A. § 4451).
  • Property Description: A detailed description of the rental property, including its address, is essential. For properties built before 1978, federal law mandates disclosures regarding lead-based paint to inform tenants of potential risks.
  • Lease Duration: Vermont allows for fixed-term leases (often one year) and month-to-month agreements. If no specific term is stated, the lease defaults to month-to-month, providing flexibility (9 V.S.A. § 4454).
  • Rent and Security Deposit: The lease should specify rent amounts, due dates, and payment methods. Security deposits are typically capped at two months' rent for fixed-term leases; landlords have 14 days to return deposits post-lease or up to 30 days if deductions are made (9 V.S.A. § 4461).
  • Maintenance Responsibilities: The lease must clarify maintenance obligations. Landlords must ensure the property is safe and habitable, while tenants should keep the unit clean and report repair needs promptly (9 V.S.A. § 4453).
  • Utilities and Services: The lease should specify which utilities are included in the rent and which are the tenant’s responsibility to prevent confusion over payments.
  • Termination and Renewal Conditions: The lease must detail termination conditions, including notice periods (typically 60 days for landlords) and renewal options, ensuring both parties understand their obligations.
  • Additional Clauses: Landlords may include specific provisions like rent increase policies or subletting rules. Legal consultation is advisable to ensure compliance with Vermont law.

Legal Considerations

For leases exceeding one year, Vermont law mandates that agreements be in writing to be enforceable. Additionally, landlords must adhere to federal and local housing discrimination laws, protecting tenants from unfair treatment based on protected characteristics (9 V.S.A. § 4500). 

Free Resources: Vermont Standard Residential Lease Agreement | eForms

SECTION 6

6. Vermont Laws Around Breaking a Lease

Breaking a lease early in Vermont involves specific legal ramifications that both landlords and tenants must understand to navigate their rights and responsibilities effectively.

Tenant Liabilities for Breaking a Lease

In Vermont, tenants who terminate a lease prematurely may face significant financial obligations.

Landlords can pursue legal action for unpaid rent, damages, and costs associated with re-renting the property. Tenants are typically responsible for rent until a new tenant is found or until the lease term concludes, potentially leading to substantial financial strain if the property remains vacant for an extended period. 

Furthermore, tenants risk losing their security deposit and may be liable for the landlord’s expenses in securing a new tenant, such as advertising costs (Vermont Statutes Title 9, Chapter 137).

Notice Requirements to Break A lease In Vermont

Landlords and tenants must provide written notice if they want to bring a lease to and end in Vermont. 

For tenants, the notice period required to end a periodic lease is at least one rental payment period prior to the termination date specified in the notice (unless otherwise stipulated in the rental agreement). Failure to comply may result in forfeiting the security deposit or incurring additional rent liabilities.(9 V.S.A. § 4456).

For landlords the notice period required to end a lease depends on the lenbgth of the lease.

  • Notice Required To Terminate Lease With a Fixed End Date: There is nothing in Vermont statute, but typically, no notice is needed since the lease simply expires.
  • Notice Required To Terminate A Lease Of A Year or More: In the case of no-cause evictions for tenancies of two years or more, at least 90 days is required (9 V.S.A. § 4467(c)(1)(B)). In the case of no-cause evictions for tenancies of two years or less, at least 60 days’ notice is required (9 V.S.A. § 4467(c)(1)(A))
  • Notice Required To Terminate A Month-to-Month Lease: At least 30 days (9 V.S.A. § 4467(e)).
  • Notice Required To Terminate A Week-to-Week Lease: 21 days (9 V.S.A. § 4467(c)(2)).

Legal Grounds for Early Termination

Several grounds allow tenants to terminate their leases early without penalties:

  • Early Termination Clause: If included in the lease, this clause specifies conditions under which a tenant can exit without repercussions.
  • Domestic Violence: Victims of domestic violence have legal protections allowing them to break their lease without penalty (Vermont Statutes § 137.4456).
  • Uninhabitable Conditions: Tenants can terminate leases if the property is deemed uninhabitable due to landlord negligence or failure to maintain essential services (Vermont Statutes § 137.4457).
  • Death of Tenant: In the event of a tenant's death, the lease may be terminated following specific legal guidelines, considering the deceased's estate.

SECTION 7

7. Vermont Eviction Process and Law

In Vermont, the eviction process is designed to protect the rights of both landlords and tenants, ensuring that disputes are resolved fairly and legally. Understanding these procedures is crucial for both parties.

Grounds for Eviction in Vermont

Tenants may be evicted for several reasons, including:

  • Failure to Pay Rent: Non-payment is the most common ground for eviction.
  • Lease Violations: This includes failing to adhere to terms outlined in the lease agreement.
  • Holding Over: Remaining on the property after the lease has expired.
  • Criminal Activity: Engaging in illegal activities that threaten the safety of others. 

Vermont Eviction Notice

Before initiating an eviction, landlords must serve a notice, specifying the time allowed for tenants to remedy the situation. There are three types of notices:

  • Eviction Notice For Nonpayment of Rent: Tenants have 14 days to pay overdue rent or leave the premises (9 VSA § 4467(a)).
  • Eviction Notice For Lease Violations: Tenants have 30 days to address lease violations or leave the premises (9 VSA § 4467(b)(1)).
  • Unconditional Notice to Quit: For serious violations like criminal activity, tenants have 14 days to vacate (9 VSA § 4467(b)(2)). 

Vermont Eviction Process

If the tenant fails to comply with the notice, landlords must follow these steps:

  • Filing an Eviction Lawsuit: Landlords must file a Summary Possession Action in local District Court.
  • Serving Legal Documents: The tenant receives a summons and complaint, ensuring they are informed of the legal action.
  • Court Hearing: Both parties present their cases, and the judge makes a ruling based on evidence.
  • Writ of Possession: If the court favors the landlord, a Writ of Possession is issued, allowing law enforcement to execute the eviction if necessary.

Eviction Execution

After receiving the Writ of Possession, law enforcement will post a notice giving tenants typically 24 hours to vacate before enforcement occurs. This structured process ensures that evictions are conducted lawfully and without self-help measures by landlords.

Source: Eviction Process | Vermont Judiciary, Evictions in Vermont | VTLawHelp

SECTION 8

8. Vermont HOA Laws

Homeowners associations (HOAs) in Vermont are governed by specific legal frameworks that dictate their formation, management, and operations. Understanding these laws is essential for landlords and tenants residing in HOA communities to ensure compliance and protect their rights.

Vermont Common Interest Ownership Act (VCIOA)

The Vermont Common Interest Ownership Act (VCIOA) serves as a foundational statute for HOAs within common interest communities. Enacted by the Vermont General Assembly, the VCIOA outlines essential guidelines regarding property rights, governance, and rule enforcement. 

It applies to communities established after January 1, 1999, and portions of it may retroactively affect older communities under certain conditions (Vt. Stat. Ann. tit. 27A, § 1-101 et seq.). For comprehensive details, individuals can access the VCIOA through Vermont statutes online.

Vermont Nonprofit Corporation Act

Many HOAs in Vermont operate as nonprofit corporations, thus falling under the Vermont Nonprofit Corporation Act. This law governs the corporate structure and procedural requirements for board meetings, ensuring that HOAs function similarly to other nonprofit entities in the state (Vt. Stat. Ann. tit. 11B). 

This framework promotes transparency and accountability among HOA members.

Vermont Condominium Ownership Act

The Vermont Condominium Ownership Act establishes a legal framework for condominiums, detailing the rights and responsibilities of unit owners and the processes involved in creating and managing condominiums (Vt. Stat. Ann. tit. 27, Chapter 15). This act ensures that condominium associations operate effectively while safeguarding the interests of unit owners.

Fair Debt Collection Practices Act

HOAs must adhere to the Fair Debt Collection Practices Act (FDCPA) when collecting dues from members. This federal law mandates that debt collection practices remain fair and respectful, prohibiting harassment or deceptive tactics during collection efforts. Violations of this act can lead to significant legal repercussions for HOAs.

Key Responsibilities of HOAs

HOAs are tasked with maintaining common areas, enforcing community rules, and managing financial operations effectively. They must collect regular assessments from homeowners to fund maintenance activities and ensure property values remain stable. Additionally, associations are required to maintain detailed records accessible to members upon request.

Governance Structure

The governance of an HOA is typically overseen by a board of directors elected by homeowners. Regular meetings must be held annually, with special meetings called as necessary (Vt. Stat. Ann. tit. 27A, § 3-102). Homeowners have the right to participate in these meetings and voice their concerns.

Voting Rights and Amendments

Voting rights within an HOA may vary based on community declarations but generally require a majority for budget approvals and amendments to rules. Significant changes often necessitate a supermajority vote, ensuring that all homeowners have a say in critical decisions affecting their community.

SECTION 9

9. Vermont Squatters Rights Laws

Vermont has specific laws governing squatters' rights and adverse possession, which allow individuals to claim ownership of property under certain conditions. 

Below is a closer look at the requirements and implications of adverse possession in Vermont, relevant to both property owners and potential claimants. 

Requirements for Adverse Possession

To successfully assert a claim in Vermont, a squatter must occupy the property continuously for 15 years. This occupation must be hostile, open, notorious, and exclusive throughout the period.

  • Hostile Occupation: The squatter must occupy the property without the owner's permission. Simply using an unoccupied property does not qualify as hostile possession.
  • Open and Notorious Use: The occupation must be visible and apparent to anyone, including the legal owner. Concealment of the occupation disqualifies the claim.
  • Exclusive Possession: The squatter must be the sole occupant of the property. Sharing the space with others undermines the exclusivity requirement.
  • Substantial Improvements: The squatter should make significant improvements to the property, such as constructing buildings or installing fences. Minor maintenance does not suffice.
  • Tax Payments: Although not mandatory for filing a claim, paying property taxes during the 15-year period can strengthen a squatter's case.

Legal Process for Claiming Adverse Possession

If a squatter meets these requirements, they may file an adverse possession claim or initiate a "quiet title" action to establish legal ownership. However, merely occupying the property does not guarantee success in court; various legal hurdles may arise.

Implications for Property Owners

Property owners should be vigilant about their properties to avoid unintentional loss through adverse possession. Regular inspections and prompt action against unauthorized occupants can help protect ownership rights. 

SECTION 10

10. Vermont Landlord Tenant Legal Resources

Below, you’ll find some helpful Vermont landlord–tenant law resources:

Documents and Forms

Legal Resources

Vermont State Agencies & Regulatory Bodies

Vermont Housing Authorities

Vermont Realtor, Landlord, and Tenant Associations