Vermont Residential Lease Agreement

Introduction

This comprehensive guide covers Vermont residential lease agreements and the legal requirements under Vermont's Residential Rental Agreements Act (9 V.S.A. Chapter 137). Vermont landlord-tenant law provides specific protections and obligations for both landlords and tenants, with particular emphasis on habitability, security deposits, entry rights, and termination procedures.

Required Disclosures

Lead-Based Paint Disclosure

Federal law requires that landlords of properties built before 1978 must disclose potential lead-based paint hazards to tenants. This disclosure must be provided before the lease is signed and includes information about any known lead-based paint and lead-based paint hazards in the property.

Security Deposits

Maximum Amount

Vermont law does not impose a statutory limit on the amount a landlord may charge for a security deposit. However, the amount must be reasonable and customary for similar properties in the area.

Return Timeline

Landlords must return security deposits within 14 days from the date the landlord discovers that the tenant vacated or abandoned the dwelling unit, or from the date the tenant vacated if the landlord received notice of that date. ^[1] For seasonal properties not used as primary residences, the return window extends to 60 days. ^[1]

Itemized Deductions

When returning the security deposit, landlords must provide a written statement itemizing any deductions. ^[1] This statement must be delivered either by hand or mailed to the tenant's last known address.

Permitted Deductions

Landlords may withhold security deposit funds for the following purposes: ^[1]

• Unpaid rent
• Property damage (excluding normal wear and tear or circumstances beyond tenant control)
• Unpaid utilities or charges the tenant was obligated to pay
• Costs of removing tenant-abandoned items

Penalties for Non-Compliance

Failure to return deposits within the required timeframe means the landlord forfeits the right to withhold any portion of the security deposit. ^[1] Willful violations carry enhanced penalties: double the wrongfully withheld amount plus reasonable attorney's fees and costs.

Interest on Security Deposits

Vermont state law does not require landlords to pay interest on security deposits. However, local regulations may impose such requirements, so tenants and landlords should check municipal ordinances.

Separate Account

Vermont law does not mandate that security deposits be held in a separate account.

Application Fees

Vermont law explicitly prohibits landlords from charging application fees for residential rental agreements. ^[2] A landlord or landlord's agent cannot charge an application fee to any individual applying to enter into a rental agreement for a residential dwelling unit. This prohibition applies only to residential properties; fees for commercial or nonresidential property applications are permitted.

Identification Requirements

When conducting background or credit checks, landlords must accept any of the following forms of identification: ^[2]

• Government-issued identification (original or copy, unexpired)
• Individual Taxpayer Identification Number
• Social Security number

Importantly, landlords cannot require a Social Security number specifically, nor may they reject an application solely because the applicant lacks one. ^[2]

Landlord's Right to Enter

Consensual Entry

Landlords may enter the rental property with the tenant's permission, which shall not be unreasonably withheld. ^[3]

Notice-Required Entry

Landlords can access rental units between 9 a.m. and 9 p.m. with at least 48 hours' advance notice for the following purposes: ^[3]

• Inspecting the premises
• Making necessary or agreed repairs, alterations, or improvements
• Supplying agreed services
• Showing the unit to prospective or actual purchasers, mortgagees, tenants, workers, or contractors

Emergency Entry

The landlord may enter the unit without consent or notice when there is a reasonable belief that there is imminent danger to any person or to property. ^[3]

Rent Payment Terms

Due Date and Payment Method

The tenant must pay rent without demand or reminders. As long as the landlord and tenant are agreeable, they can choose the time, place, and method of rent payment. ^[4] Rent is due on the date specified in the lease or rental agreement.

Grace Period

Vermont law does not require landlords to provide a grace period before assessing late fees. Rent is due on the agreed date.

Late Fees

There is no specific Vermont statute governing late fees. However, the 1991 Vermont Supreme Court ruling in Highgate Associates, Ltd. v. Lorna Merryfield established that late fees charged as penalties are prohibited. Late fees are only acceptable when they represent actual compensation for costs incurred by the landlord as a result of late rent payments. Late fees must be reasonably related to the landlord's actual costs.

Tenant Remedies for Repairs

Minor Defects: Repair and Deduct

If a landlord does not repair a minor defect within 30 days of receiving notice, the tenant may repair the defect and deduct from the rent the actual and reasonable cost of the work, not to exceed one-half of one month's rent. ^[5] The tenant must inform the landlord of repair costs when deducting them from rent payments.

This remedy is unavailable if the tenant or someone on the premises with the tenant's consent caused the defect through negligent or deliberate action. ^[5]

Major Habitability Issues

If the landlord fails to comply with habitability obligations and, after receiving actual notice from the tenant, a governmental entity, or a qualified independent inspector, fails to make repairs within a reasonable time, and the noncompliance materially affects health and safety, the tenant may: ^[6]

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

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. ^[6]

Subletting

A landlord may condition or prohibit subleasing a dwelling unit under the terms of a written rental agreement. ^[7] Landlords may require tenants to provide written notice of the name and contact information of any sublessee occupying the dwelling unit.

If the terms of a written rental agreement prohibit subleasing the dwelling unit, the landlord or tenant may bring an action for ejectment against a person occupying the dwelling unit without right or permission. ^[7]

In the absence of a written rental agreement, a tenant must provide the landlord with written notice of the name and contact information of any sublessee occupying the dwelling unit. ^[7]

Lease Termination

Termination for Nonpayment of Rent

Landlords may end tenancies for unpaid rent by providing actual notice to the tenant of the date on which the tenancy will terminate, which must be at least 14 days after notice delivery. ^[8] Tenants can prevent termination by paying all owed rent during the rental period when payment is made.

Termination for Lease Violations

For material violations of the rental agreement, landlords must give at least 30 days' notice. ^[8] However, when breaches involve criminal activity, illegal drug activity, or acts of violence endangering residents, only 14 days' notice is required. ^[8]

No-Cause Termination (month-To-Month Without Written Agreement)

In the absence of a written rental agreement where rent is payable on a monthly basis, notice periods depend on tenancy duration: ^[8]

• Tenants who have resided continuously in the same premises for two years or less: at least 60 days' notice
• Tenants who have resided continuously in the same premises for more than two years: at least 90 days' notice

No-Cause Termination (written Month-To-Month Agreement)

If there is a written rental agreement, the notice to terminate for no cause must be provided before the end or expiration of the stated term: ^[8]

• For tenancies of two years or less: at least 30 days before the end of the rental agreement term
• For tenancies of more than two years: at least 60 days before the end of the rental agreement term

Week-To-Week Tenancies

For week-to-week tenancies, either party may terminate with at least 21 days' notice for no-cause terminations, or 7 days' notice as specified in written agreements. ^[8]

Shared Housing

For shared housing arrangements, either party may terminate with at least 15 days' notice for monthly rent arrangements or 7 days for weekly arrangements. ^[8]

Property Sale

Landlords selling buildings must provide at least 30 days' notice when no written agreement exists. ^[8]