Vermont Standard Residential Lease Agreement

Vermont Standard Residential Lease Agreement

A Vermont standard residential lease agreement is a legally binding contract between a landlord and tenant that establishes the terms and conditions for renting residential property. The agreement typically has a fixed term, usually one year, and outlines the rental price, payment schedule, security deposit requirements, and the rights and responsibilities of both parties. ^[1]

Vermont landlord-tenant law is primarily governed by Title 9, Chapter 137 of the Vermont Statutes, known as the Residential Rental Agreements chapter. This statute establishes minimum standards for habitability, security deposit handling, termination procedures, and tenant protections that apply to most residential rentals in the state. ^[1]

Legal Framework

Vermont residential rental agreements are governed by state statute (9 V.S.A. Chapter 137), federal fair housing laws, and applicable municipal ordinances. The state law provides comprehensive protections for tenants while establishing clear obligations for landlords. Key provisions include an implied warranty of habitability, security deposit regulations, and specific notice requirements for termination. ^[1]

Applicable Laws

• Vermont Residential Rental Agreements Act - 9 V.S.A. Chapter 137 ^[1]
• Vermont Fair Housing Act - 9 V.S.A. Chapter 139 ^[12]
• Federal Fair Housing Act - 42 U.S.C. Section 3601 et seq. ^[13]
• Residential Lead-Based Paint Hazard Reduction Act - 42 U.S.C. Section 4852d ^[10]

Required Disclosures

Vermont landlords must provide certain disclosures before or at the time a lease is signed. Unlike many states, Vermont has relatively few mandatory disclosure requirements.

Lead-Based Paint Disclosure (federal Requirement)

For properties built before January 1, 1978, federal law requires landlords to: ^[10]

• Disclose any known information concerning the presence of lead-based paint and lead-based paint hazards in the property ^[10]
• Provide all available records and reports pertaining to lead-based paint or hazards ^[10]
• Provide the tenant with the EPA-approved pamphlet "Protect Your Family From Lead in Your Home" ^[10]
• Include a Lead Warning Statement in the lease agreement ^[10]

Penalties for non-compliance can reach up to $19,507 per violation as of 2024, and landlords who knowingly violate disclosure requirements may be liable for triple damages. ^{[10] [11]}

Security Deposits

Vermont law defines a security deposit as "any advance, deposit, or prepaid rent, however named, which is refundable to the tenant at the termination or expiration of the tenancy." The function of a security deposit is to secure the tenant's performance of their obligations to pay rent and maintain the dwelling unit. ^[2]

Key Security Deposit Rules

Permitted Deductions

Under 9 V.S.A. Section 4461(b), a landlord may retain all or a portion of the security deposit for: ^[2]

• Nonpayment of rent ^[2]
• Damage to the property of the landlord (excluding normal wear and tear or damage beyond tenant control) ^[2]
• Nonpayment of utility or other charges the tenant was required to pay ^[2]
• Expenses required to remove articles abandoned by the tenant ^[2]

Transfer of Security Deposit

When ownership of a rental property transfers, the security deposit must be transferred to the new landlord. The new landlord must give the tenant actual notice of the new landlord's name and address along with a statement that the security deposit has been transferred. ^[2]

Rent and Payment

Rent Payment

Under Vermont law, rent is payable without demand or notice at the time and place agreed upon by the parties. There is no statutory grace period for late rent payments in Vermont. ^[3]

Late Fees

While Vermont has no statutory cap on late fees, the Vermont Supreme Court has held that late fees must be "reasonable" and constitute valid liquidated damages rather than penalties. A late fee that is disproportionate to the landlord's actual damages from late payment may be unenforceable. ^[8]

Rent Increases

An increase in rent shall take effect on the first day of the rental period following no less than 60 days' actual notice to the tenant. This applies regardless of whether there is a written lease agreement. ^[3]

Landlord Obligations

Implied Warranty of Habitability

In any residential rental agreement, Vermont law implies a warranty that the landlord will "deliver over and maintain, throughout the period of the tenancy, premises that are safe, clean, and fit for human habitation and that comply with the requirements of applicable building, housing, and health regulations." ^[4]

This warranty cannot be waived. Any provision in a rental agreement by which the tenant waives habitability protections is "contrary to public policy and shall be unenforceable and void." ^[4]

Heat and Water Requirements

As part of the implied warranty of habitability, landlords must ensure: ^[4]

• The dwelling has heating facilities capable of safely providing a reasonable amount of heat ^[4]
• If heat is included in rent, the landlord must supply a reasonable amount at all times ^[4]
• Adequate hot and cold water must be provided ^[4]
• Water heating facilities must be capable of heating sufficient water ^[4]

Access to Rental Unit

Vermont law establishes specific rules for landlord access to occupied rental units. ^[5]

Permitted purposes for entry with notice include: inspection of the premises, necessary or agreed repairs/alterations/improvements, supplying agreed services, and showing the unit to prospective tenants, purchasers, mortgagees, workers, or contractors. ^[5]

Tenant Obligations

Use and Maintenance

Under 9 V.S.A. Section 4456, tenants must: ^[9]

• Not create or contribute to noncompliance with building, housing, and health regulations ^[9]
• Conduct themselves (and require guests to conduct themselves) in a manner that does not disturb other tenants' peaceful enjoyment ^[9]
• Not deliberately or negligently destroy, deface, damage, or remove any part of the premises, fixtures, mechanical systems, or furnishings ^[9]

Tenant Termination of Tenancy

Unless inconsistent with a written rental agreement, a tenant may terminate a tenancy by actual notice given to the landlord at least one rental payment period prior to the termination date specified in the notice. ^[9]

Termination of Tenancy

Vermont law establishes detailed notice requirements for terminating a tenancy, which vary based on the reason for termination and the length of tenancy. ^[6]

Termination Notice Requirements

Acceptance of Rent After Termination Notice

A landlord's acceptance of full or partial rent after serving termination notice (for reasons other than nonpayment) does not result in dismissal of an ejectment action or waiver of the landlord's remedies. This applies to terminations for breach, tenant obligations violations, and no-cause terminations. ^[6]

Tenant Remedies

Remedies for Habitability Violations

If a landlord fails to maintain habitability and, after receiving actual notice, fails to make repairs within a reasonable time and the noncompliance materially affects health and safety, the tenant may: ^[14]

• Withhold payment of rent for the period of noncompliance ^[14]
• Obtain injunctive relief ^[14]
• Recover damages, costs, and reasonable attorney's fees ^[14]
• Terminate the rental agreement on reasonable notice ^[14]

These remedies are not available if the noncompliance was caused by the negligent or deliberate act or omission of the tenant or a person on the premises with the tenant's consent. ^[14]

Illegal Evictions

Vermont law strictly prohibits self-help evictions. Under 9 V.S.A. Section 4463: ^[7]

• No landlord may willfully cause the interruption or termination of utility service (except for emergency repairs) ^[7]
• No landlord may directly or indirectly deny a tenant access to and possession of the rented premises, except through proper judicial process ^[7]
• No landlord may deny a tenant access to their property, except through proper judicial process ^[7]

Landlords must use the court eviction process to remove tenants. Changing locks, removing doors, shutting off utilities, or removing tenant belongings without a court order constitutes an illegal eviction.

Retaliation Protections

Vermont law prohibits landlord retaliation against tenants who exercise their legal rights. A landlord may not retaliate by establishing or changing terms of a rental agreement or by bringing or threatening an action against a tenant who: ^[15]

• Has complained to a governmental agency about a building, housing, or health regulation violation materially affecting health and safety ^[15]
• Has complained to the landlord about a violation of Chapter 137 ^[15]
• Has organized or become a member of a tenant's union or similar organization ^[15]

Rebuttable Presumption

If a landlord serves notice of termination (other than for nonpayment of rent) within 90 days after notice by a governmental entity that the premises are not in compliance with health or safety regulations, there is a rebuttable presumption that the termination is retaliatory. ^[15]

If a landlord violates the retaliation provisions, the tenant is entitled to recover damages and reasonable attorney's fees and has a defense in any retaliatory action for possession. ^[15]

Fair Housing Protections

Vermont provides broader fair housing protections than federal law. Under 9 V.S.A. Section 4503, it is illegal to discriminate in the rental of housing based on: ^[12]

• Race, color, religion, national origin ^{[12] [13]}
• Sex, sexual orientation, gender identity ^[12]
• Age, marital status ^[12]
• Disability ^{[12] [13]}
• Presence of minor children (familial status) ^{[12] [13]}
• Citizenship or immigration status ^[12]
• Receipt of public assistance ^[12]
• Status as a victim of abuse, sexual assault, or stalking ^[12]

Vermont adds six protected categories beyond federal law: marital status, age, sexual orientation, gender identity, receipt of public assistance, and victims of abuse/assault/stalking. ^[12]

Reasonable Accommodations and Modifications

Landlords must permit tenants with disabilities to make reasonable modifications to the dwelling at the tenant's expense. The landlord may require restoration to original condition when the tenancy ends but cannot require an additional security deposit for permitted modifications. ^[12]

How to Create a Vermont Residential Lease Agreement

When creating a residential lease agreement in Vermont, the following elements should be included:

Essential Elements

Names and contact information of all parties (landlord and tenant(s))

Complete property address and description

Lease term (start date and end date or month-to-month designation)

Rent amount, due date, and acceptable payment methods

Security deposit amount and terms

• Late fee policy (must be "reasonable") ^[8]

Utilities - which party is responsible for each

Maintenance responsibilities

Rules regarding pets, smoking, guests, and noise

• Lead-based paint disclosure (if property built before 1978) ^[10]

Termination and renewal provisions

Signatures of all parties

Signing Requirements

Vermont does not require leases to be notarized. Both landlord and tenant should sign and date the agreement, and each party should retain a copy. For leases longer than one year, a written agreement is generally required under the Statute of Frauds.

Resources and Citations

The following authoritative sources were used in preparing this document. All citations are to official Vermont statutes, federal law, and government resources.

Vermont State Statutes

**[1] **9 V.S.A. Chapter 137 - Residential Rental Agreements (Full Chapter)

**[2] **9 V.S.A. Section 4461 - Security Deposits

**[3] **9 V.S.A. Section 4455 - Tenant Obligations; Payment of Rent

**[4] **9 V.S.A. Section 4457 - Landlord Obligations; Habitability

**[5] **9 V.S.A. Section 4460 - Access

**[6] **9 V.S.A. Section 4467 - Termination of Tenancy; Notice

**[7] **9 V.S.A. Section 4463 - Illegal Evictions

**[8] **Highgate Associates v. Merryfield (1991) - Late Fee Reasonableness Standard

**[9] **9 V.S.A. Section 4456 - Tenant Obligations; Use and Maintenance

Federal Law

**[10] **42 U.S.C. Section 4852d - Lead-Based Paint Disclosure Requirements

**[11] **40 CFR Part 745 Subpart F - Lead-Based Paint Disclosure Regulations

Fair Housing

**[12] **9 V.S.A. Section 4503 - Unfair Housing Practices (Vermont Fair Housing Act)

**[13] **Federal Fair Housing Act - U.S. Department of Housing and Urban Development