Vermont Lease Agreement

Understanding Vermont Lease Agreement Requirements

State Legal Framework

Vermont landlord tenant law provides strong tenant protections while establishing clear obligations for property owners. The Vermont Residential Rental Agreements Act (9 V.S.A. Chapter 137) establishes comprehensive rights and responsibilities for both parties. Vermont provides significant tenant protections including required habitability standards, security deposit limitations, and detailed notice requirements. The state does not impose rent control, though Burlington has studied tenant protection measures. The Vermont rental lease agreement becomes enforceable when both parties sign the document, creating mutual obligations that govern the entire landlord-tenant relationship under Vermont’s Residential Rental Agreements Act.

Written Agreement Standards

Vermont does not legally require written lease agreements for tenancies under one year. However, creating a written residential lease agreement Vermont landlords can reference provides essential documentation and legal protection. Written agreements prevent disputes by establishing explicit terms both parties acknowledge and accept. Given Vermont’s tenant protections, written agreements become particularly important.

Essential Elements of a Vermont Lease Agreement

Parties and Property Identification

Complete Party Information Every Vermont lease agreement template should identify all parties involved in the rental arrangement. Required information includes:

• Full legal names of all landlords or property managers
• Full legal names of all adult tenants
• Complete property address including unit numbers
• Legal property description when applicable

Accurate identification prevents confusion about who holds rights and responsibilities under the agreement.

Lease Term and Duration

Fixed-Term Agreements Fixed-term leases establish specific start and end dates for tenancies. Most Vermont rental contracts run for 12-month periods, though landlords can create agreements for any duration. Fixed-term leases provide stability for both parties and establish clear expectations about tenancy length.

Month-to-Month Arrangements Month-to-month rental agreements offer flexibility for landlords and tenants who prefer shorter commitments. These arrangements automatically renew each month until either party provides proper termination notice. Vermont requires written notice to terminate, with timing varying based on rental payment period.

Rent Payment Terms

Payment Obligations Vermont lease agreements must clearly state rent payment requirements including:

• Monthly rent amount
• Payment due date
• Accepted payment methods
• Where tenants should submit payments
• Grace period provisions

Vermont requires landlords to provide a 14-day grace period before charging late fees or beginning eviction proceedings for nonpayment. This is one of the longest grace periods in the nation.

Late Fee Provisions Vermont does not impose specific statutory caps on late fee amounts, but fees must be reasonable. Late fees cannot be charged until after the 14-day grace period. Late fee policies should appear clearly in the rental agreement Vermont tenants receive.

Security Deposit Requirements in Vermont

Deposit Limits and Handling

No Statutory Cap Vermont places no statutory limit on security deposit amounts. However, landlords typically collect deposits equal to one or two months rent. Excessive deposits may be challenged as unreasonable.

No Separate Account Requirements Vermont does not require landlords to hold security deposits in separate escrow accounts or pay interest on deposited funds. Landlords have flexibility in managing deposit funds while maintaining proper records.

Return Procedures

14-Day Timeline Vermont landlords must return security deposits within 14 days after tenants vacate properties. This is one of the shortest return periods in the nation. The timeline applies to both the deposit return and required itemized statements of deductions.

Itemization Requirements If landlords withhold any portion of the deposit, they must provide a written itemized statement of deductions describing:

• Each item of damage claimed
• Actual cost of repairs
• Any unpaid rent or charges

Allowable Deductions Landlords can deduct from security deposits for:

• Unpaid rent
• Damage beyond normal wear and tear
• Costs to restore property to move-in condition
• Cleaning costs if not left in same condition
• Unpaid utility charges
• Other charges authorized in the lease agreement

Providing itemized deduction statements with remaining deposit balances prevents tenant disputes.

Wrongful Withholding Penalties

Vermont imposes penalties on landlords who wrongfully withhold security deposits. Landlords who fail to return deposits or provide proper itemization within 14 days may be liable for:

• Double the amount wrongfully withheld
• Reasonable attorney fees
• Court costs

These penalties make compliance with security deposit requirements essential.

Required Disclosures for Vermont Rental Agreements

Lead-Based Paint Disclosure

Federal law mandates lead-based paint disclosures for all rental properties built before 1978. Vermont has additional state-level lead requirements. Landlords must provide:

• Written disclosure of known lead-based paint presence
• EPA pamphlet “Protect Your Family from Lead in Your Home”
• Ten-day opportunity for lead inspection
• Signed acknowledgment of disclosure receipt
• Vermont Essential Maintenance Practices (EMP) compliance information

Vermont requires landlords to perform Essential Maintenance Practices for lead safety in pre-1978 housing.

Owner/Agent Identification

Vermont requires landlords to disclose:

• Name and address of the property owner
• Name and address of any person authorized to manage the property
• Name and address of person authorized to receive notices and demands

This information must be provided in the lease agreement or separately at the beginning of tenancy.

Habitability Disclosure

Vermont requires landlords to provide written notice of the tenant’s rights regarding habitability and the landlord’s obligations to maintain the premises.

Smoke and Carbon Monoxide Detector Disclosure

Vermont requires landlords to:

• Install and maintain smoke detectors
• Install and maintain carbon monoxide detectors
• Provide written information about detector locations and testing

Energy Efficiency Disclosure

Vermont encourages but does not require disclosure of energy efficiency information. However, landlords may be required to provide:

• Information about heating costs
• Energy efficiency ratings where available

Mold Disclosure

Vermont does not mandate specific mold disclosures. However, landlords should consider:

• Disclosing known mold problems as a best practice
• Addressing mold prevention in lease terms
• Responding promptly to tenant mold reports

Given Vermont’s climate, mold prevention is particularly important.

Bed Bug Disclosure

Vermont does not require specific bed bug disclosures. Best practices include:

• Disclosing known infestation history
• Establishing reporting procedures in lease terms
• Clarifying treatment responsibilities

Radon Disclosure

Vermont does not mandate radon disclosure but recommends testing and disclosure as a best practice. Vermont has areas with elevated radon levels.

Flood Zone Disclosure

While not strictly required, Vermont landlords should consider disclosing flood zone status given the state’s history of flooding, particularly after Tropical Storm Irene.

Landlord and Tenant Rights Under Vermont Law

Landlord Obligations

Warranty of Habitability Vermont imposes strong implied warranty of habitability requirements on landlords. Required maintenance includes:

• Compliance with all applicable building and housing codes materially affecting health and safety
• Making all repairs necessary to keep premises fit and habitable
• Keeping common areas clean and safe
• Maintaining electrical, plumbing, sanitary, heating, ventilating, and air conditioning systems
• Providing running water and adequate hot water
• Providing adequate heat (minimum 65°F)
• Maintaining working smoke detectors and carbon monoxide detectors
• Providing garbage receptacles and arranging for removal
• Extermination of pest infestations
• Maintaining weathertight conditions
• Providing secure locks on exterior doors
• Essential Maintenance Practices for lead safety (pre-1978 housing)

Landlords must make repairs within a reasonable time after receiving written notice from tenants (generally 30 days for non-emergency repairs).

Property Access Rights Vermont requires landlords to provide at least 48 hours advance notice before entering rental properties. This is longer than many states. Entry must occur at reasonable times for legitimate purposes including:

• Inspections
• Repairs and maintenance
• Showing property to prospective tenants or buyers
• Emergencies (no notice required)

Landlords cannot abuse the right of access or use it to harass tenants.

Tenant Responsibilities

Property Care Standards Tenants must maintain rental units according to Vermont statutory requirements including:

• Keeping the property clean and sanitary
• Using electrical, plumbing, heating, and other systems properly
• Disposing of garbage in a clean and sanitary manner
• Not deliberately or negligently destroying property
• Not disturbing neighbors’ peaceful enjoyment
• Complying with housing and building codes
• Allowing reasonable landlord access with proper notice
• Maintaining smoke and carbon monoxide detectors (battery replacement)

Lease Termination and Eviction Procedures

Voluntary Termination

Notice Requirements Vermont termination notice requirements depend on lease type:

• Fixed-term leases end automatically on specified dates
• Month-to-month tenancies require one rental payment period notice (typically 30 days)
• Week-to-week tenancies require one week notice

For tenancies of two years or more, Vermont requires 60 days notice to terminate without cause.

Rent Increases

Vermont requires landlords to provide at least 60 days written notice before rent increases. This is one of the longer notice periods in the nation.

Eviction Processes

Vermont uses ejectment actions for evictions, with significant tenant protections.

Nonpayment of Rent Vermont landlords can begin eviction proceedings when tenants fail to pay rent. The process requires:

• 14-day grace period must expire
• 14-day notice to pay rent or vacate
• Filing ejectment action if tenant fails to comply
• Court hearing and judgment
• Writ of possession for physical removal

Tenants can cure by paying all owed amounts up until the court hearing.

Lease Violations Landlords can pursue eviction for material lease violations:

• 30-day notice to cure for most violations
• If violation is not cured, eviction may proceed
• Court filing and proceedings

No-Cause Termination For termination without cause:

• Requires longer notice periods (60 days for tenancies of two years or more)
• Seasonal rental and other exceptions may apply

Retaliatory Eviction Protections

Vermont prohibits retaliatory evictions. Landlords cannot evict or retaliate against tenants for:

• Complaining about code violations to appropriate governmental agencies
• Exercising legal rights under the Residential Rental Agreements Act
• Organizing or participating in tenant organizations
• Reporting landlord misconduct

Retaliatory actions within 90 days of protected activity are presumed retaliatory.

Creating an Effective Vermont Lease Agreement

Documentation Best Practices

Comprehensive Terms Strong Vermont lease agreements include provisions addressing:

• Pet policies and deposits
• Guest and occupancy limits
• Maintenance responsibilities
• Utility payment assignments
• Parking and storage rules
• Noise and conduct standards
• Renewal and termination procedures
• Entry notice procedures (48 hours minimum)
• Snow removal responsibilities
• Heating fuel responsibilities
• Wood stove and pellet stove provisions
• Lead paint Essential Maintenance Practices acknowledgment

Professional Templates Using a Vermont lease agreement template ensures contracts include all legally required elements. Given Vermont’s 14-day grace period, 48-hour entry notice, and lead paint requirements, professional templates help landlords maintain compliance.

Tenant Screening Integration

Application Procedures Thorough tenant screening before lease signing helps landlords select reliable tenants. Screening should include:

• Credit history review
• Employment and income verification
• Rental history and references
• Background checks where permitted

Vermont does not prohibit source of income discrimination statewide, though some localities may have protections. Documenting screening criteria and applying standards consistently protects landlords from discrimination claims.

Vermont-Specific Considerations

Burlington Area

Burlington and Chittenden County dominate Vermont’s rental market:

• State’s largest city with highest rental demand
• University of Vermont creates significant student market
• Champlain College student rentals
• Burlington College area
• High rental rates relative to state
• Strong rental demand and low vacancy
• Lake Champlain waterfront properties
• Progressive tenant-friendly environment

Montpelier and Central Vermont

The state capital area presents distinct dynamics:

• State government employment base
• Vermont College of Fine Arts
• Smaller rental market
• Historic properties common
• Flood risk considerations (Winooski River)

Southern Vermont

Southern Vermont offers varied rental markets:

• Ski resort areas (Mount Snow, Stratton, Killington)
• Seasonal rental patterns
• Vacation rental opportunities
• Brattleboro arts community
• Bennington College area

Ski Resort Areas

Vermont’s ski industry creates unique rental dynamics:

• Seasonal workforce housing
• Vacation rental regulations
• High winter season demand
• Lower summer occupancy (some areas)
• Short-term rental opportunities
• Stowe, Killington, Sugarbush, Jay Peak areas
• Worker housing challenges

Winter Weather Provisions

Vermont’s harsh winters create essential rental considerations:

• Heating system maintenance requirements
• Minimum heating temperature requirements (65°F)
• Emergency heating failure procedures
• Pipe freezing prevention (critical in VT)
• Snow and ice removal responsibilities
• Heating fuel responsibilities (oil, propane, wood, pellets)
• Wood stove and pellet stove provisions
• Driveway and walkway maintenance
• Garage and covered parking access
• Ice dam prevention

Lease agreements must clearly address winter maintenance duties given Vermont’s severe climate.

Heating Fuel Provisions

Vermont’s reliance on heating oil and alternative fuels creates specific considerations:

• Oil delivery and tank maintenance
• Propane tank provisions
• Wood and pellet stove responsibilities
• Fuel assistance program awareness
• Heating cost disclosures
• Emergency heating provisions

College Town Rentals

Vermont has college student rental markets:

• University of Vermont (Burlington)
• Champlain College (Burlington)
• Middlebury College
• Bennington College
• Norwich University (Northfield)
• Saint Michael’s College (Colchester)
• Castleton University
• Northern Vermont University (Johnson and Lyndon)

Landlords in college areas should consider:

• Academic year lease terms
• Parental guarantor requirements
• Move-in/move-out timing around semesters
• Multiple roommate arrangements
• Summer subletting provisions

Flood Risk Considerations

Vermont has significant flood exposure:

• Tropical Storm Irene damage history
• River valley flooding risks
• Disclosure of flood zone locations recommended
• Flood insurance requirements in certain areas
• Winooski, Lamoille, and other river corridors

Historic Properties

Vermont has significant historic housing stock:

• Historic preservation requirements in some areas
• Older electrical and plumbing systems
• Lead paint prevalence (pre-1978)
• Unique maintenance challenges
• Energy efficiency concerns in older buildings

Lead Paint Essential Maintenance Practices

Vermont has specific lead paint requirements:

• Essential Maintenance Practices (EMP) required for pre-1978 housing
• Annual compliance requirements
• Tenant notification obligations
• Specific cleaning and maintenance protocols
• Documentation requirements
• Penalties for non-compliance

Short-Term and Vacation Rentals

Vermont regulates short-term rentals at local levels:

• Stowe vacation rental regulations
• Burlington short-term rental requirements
• Ski resort area restrictions
• Local registration and licensing varies
• Rooms and meals tax obligations
• Seasonal rental considerations

Rural Property Considerations

Much of Vermont is rural:

• Well water and septic system disclosures
• Dirt road access and maintenance
• Remote property access (especially in winter)
• Agricultural property provisions
• Limited rental inventory in rural areas
• Mud season access challenges

Mobile Home Parks

Vermont has specific mobile home park protections:

• Mobile Home Park Act requirements
• Strong tenant protections for lot rentals
• Sale and closure notification requirements
• Tenant right of first refusal
• Lot rent increase limitations

Energy Efficiency Considerations

Vermont emphasizes energy efficiency:

• Efficiency Vermont programs
• Weatherization assistance
• Energy audit recommendations
• Heating cost considerations
• Older housing energy challenges

Cannabis Considerations

Vermont has legalized recreational cannabis:

• Landlords can prohibit cannabis smoking in lease agreements
• Cannot discriminate based on lawful cannabis use
• Smoking and growing restrictions may be imposed
• Federal housing programs maintain prohibitions

Source of Income Considerations

Vermont does not prohibit source of income discrimination statewide:

• Landlords may decline Housing Choice Vouchers
• Individual landlord discretion applies
• Check local ordinances for potential protections

Environmental Considerations

Vermont’s environmental focus affects rentals:

• Recycling and composting requirements
• Act 250 environmental review (larger developments)
• Shoreland protection regulations
• Wetland considerations

Military Considerations

Vermont has limited military presence but:

• Servicemembers Civil Relief Act (SCRA) protections apply
• Vermont National Guard activations
• Eviction protections during active duty

Security Deposit

TOPIC	RULE
Security Deposit Maximum:	No statute.
Security Deposit Interest:	There is no statewide statute specifiying interest accrued by a security deposit, though towns and municipalities in Vermont are allowed to adopt ordinances authorizing the interest payments. Vt. Stat. tit. 9 § 4461(g)
Separate Security Deposit Bank Account:	No statute.
Non-refundable fees:	No statute.
Pet Deposits and Additional Fees:	No statute.
Deadline for Returning Security Deposit:	Landlords are required to return the tenant’s security deposit, along with an itemized statement detailing any deductions, within 14 days after the tenant vacates the rental property. For tenants renting a property on a seasonal basis, the security deposit and the accompanying statement must be returned within 60 days of the tenant’s termination of the rental lease. Vt. Stat. tit. 9 § 4461(c)
Permitted Uses of the Deposit:	Landlords are permitted to use all or part of the security deposit to cover the following expenses: 1. Nonpayment of rent: If the tenant fails to pay rent owed. 2. For any damage caused by the tenant that exceeds the expected wear and tear associated with regular use. 3. Unpaid utility charges: For utility bills that the tenant was responsible for paying directly to the landlord but did not pay. 4. Costs of removing abandoned property: Expenses incurred by the landlord for removing belongings left behind by the tenant after vacating the rental unit. Vt. Stat. tit. 9 § 4461(b)
Security Deposit can be Withheld:	Yes, it can be withheld under certain circumstances. Vt. Stat. tit. 9 § 4461
Require Written Description/Itemized List of Damages and Charges:	The itemizes list of damages must accompany the security deposit when it is returned to the tenant following the termination of a lease. Vt. Stat. tit. 9 § 4461(c)
Receipt of Security Deposit:	No statute.
Record Keeping of Deposit Withholdings:	No statute.
Failure to Comply:	If the landlord fails to return the deposit within 14 days of lease termination, the landlord forfeits the right to withhold any part of the security deposit. If the landlord willfully withholds the secuirty deposit without cause, they can be liable for twice the amount of the security deposit, plus any attorney’s fees and related court costs. Vt. Stat. tit. 9 § 4461(e)

Lease, Rent & Fees

TOPIC	RULE
Rent is Due:	Rent is due without demand or notice on a date and location the parties agree to in the lease agreement. Vt. Stat. tit. 9 § 4455(a)
Payment Methods:	No statute.
Rent Increase Notice:	Landlords are required to give 60 days’ notice before increasing rent. Vt. Stat. tit. 9 § 4455(b)
Late Fees:	No statute, though the 1991 Vermont Supreme Court ruling in Highgate Associates, Ltd. v. Lorna Merryfield established a prohibiition against late fees which are charged as penalties. Late fees charged as actual compensation for costs incurred by landlords as a result of delayed rent payments are the only acceptable times that a late fee can be charged.
Application Fees:	Application fees are prohibited by state law. Vt. Stat. tit. 9 § 4456a
Prepaid Rent:	No statute.
Returned Check Fees:	No statute.
Tenant Allowed to Withhold Rent for Failure to Provide Essential Services (Water, Heat, etc.):	Tenants have the right to withhold rent if there are significant health code violations in their rental property. Tenants must have notified the landlord about the issue and the landlord has failed to make the necessary repairs or changes to be eligible. In addition to withholding rent, tenants are also permitted to seek injunctive relief, which is a court order requiring the landlord to make the noted repairs. Tenants may be entitled to recover damages, legal costs, and reasonable attorney’s fees if they pursue legal action. Vt. Stat. tit. 9 § 4458
Tenant Allowed to Repair and Deduct Rent:	If a landlord fails to make minor repairs within 30 days of being notified by the tenant, tenants have the right to make the repairs themselves and deduct the cost from their monthly rent. The amount deducted cannot exceed half of one month’s rent. Tenants are required to inform the landlord of the repair costs at the time the rent is deducted. This provision allows tenants to ensure that necessary repairs are made while providing a clear process for handling the financial aspects of such repairs. Vt. Stat. tit. 9 § 4459
Self-Help Evictions:	No statute.
Landlord Allowed to Recover Court and Attorney’s Fees:	Yes. Vt. Stat. tit. 9 § 4456(e)
Landlord Must Make a Reasonable Attempt to Mitigate Damages to Lessee, including an Attempt to Re-rent:	No, however, if the landlord rents the dwelling unit before the expiration of the current rental agreement, the agreement terminates on the date of the new tenancy. Vt. Stat. tit. 9 § 4462

Notices and Entry

TOPIC	RULE
Notice to Terminate Tenancy:	No statute. Typically, no notice is needed since the lease simply expires. In the case of no-cause evictions for tenancies of two years plus, at least 90 days’ notice is required. In the case of no-cause evictions for tenancies of two years or less, at least 60 days’ notice is required. Vt. Stat. tit. 9 § 4467
Notice to Terminate a Periodic Lease – Month-to-Month:	At least 30 days’ notice is required. Vt. Stat. tit. 9 § 4467(e)
Notice to Terminate a Periodic Lease – Week-to-week:	At least 21 days’ notice is required. Vt. Stat. tit. 9 § 4467(c)(2)
Notice to Terminate Lease due to Sale of Property:	At least 3 days’ notice is required. Vt. Stat. tit. 9 § 4467(e)
Notice of date/time of Move-Out Inspection:	No statute.
Notice of Termination for Nonpayment:	14 days’ notice is required. Vt. Stat. tit. 9 § 4467(a)
Notice for Lease Violation:	30 days’ notice is required for lease violations; 14 days’ notice is required if the eviction notice is due to criminal activity. Vt. Stat. tit. 9 § 4467(b(1) and (2)
Required Notice before Entry:	The landlord is required to provide 48 hours’ of notice and can only enter the rental unit between 9:00 am and 9:00 pm. Vt. Stat. tit. 9 § 4460
Entry Allowed with Notice for Maintenance and Repairs:	Yes. Vt. Stat. tit. 9 § 4460
Emergency Entry Allowed without Notice:	Yes. Vt. Stat. tit. 9 § 4460
Entry Allowed During Tenant’s Extended Absence:	No statute.
Entry Allowed with Notice for Showing the Property:	No statute.
Notice to Tenants for Pesticide Use:	No statute.
Lockouts Allowed:	No statute.
Utility Shut-offs Allowed:	No. See the Vermont Department of Health’s Rental Housing Health Code, Section 12.1.2
Electronic Notices Allowed:	no

Disclosures

Tenant’s Duties

• Cleanliness: Maintain unit clean. (9 V.S.A. § 4456)
• Trash: Dispose properly. (9 V.S.A. § 4456)
• Plumbing: Use fixtures reasonably. (9 V.S.A. § 4456)
• Appliances: Use responsibly. (9 V.S.A. § 4456)
• Damage: Avoid causing damage. (9 V.S.A. § 4456)
• Quiet Enjoyment: Do not disturb others. (Common law)
• Subleasing: Permitted with consent. (Lease-specific)
• Retaliation: Not permitted. (9 V.S.A. § 4465)

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Protecting Your Vermont Rental Investment

A well-drafted Vermont rental lease agreement forms the foundation of successful property management. Given Vermont’s 14-day grace period, 48-hour entry notice requirement, short security deposit return timeline, and lead paint Essential Maintenance Practices requirements, comprehensive documentation becomes essential. Clear terms addressing heating provisions, winter maintenance, and lead safety protect both landlord and tenant interests.

RocketRent provides Vermont lease agreement templates designed to meet state requirements and protect landlord investments. Our platform streamlines property management with integrated tools for lease creation, rent collection, and tenant screening. Create your Vermont rental lease agreement today and manage your properties with confidence.