VERMONT SECURITY DEPOSIT RETURN LETTER

Date: [[Date of Letter]]

To (Tenant(s)):
[[Tenant Full Legal Name(s)]]
[[Tenant Forwarding Address Line 1]]
[[Tenant Forwarding Address Line 2]]
[[City, State, ZIP]]

From (Landlord or Authorized Agent):
[[Landlord or Property Manager Full Legal Name]]
[[Landlord/Agent Mailing Address]]
Phone: [[Landlord Phone]] | Email: [[Landlord Email]]

Re: Return of Security Deposit
Property Address: [[Property Address]]
Lease Period: [[Lease Start Date]] to [[Lease End Date]]
Move-out / Key Return Date: [[Move-out Date]]
Original Security Deposit: $[[Original Security Deposit Amount]]

Dear [[Tenant Name(s)]]:

This letter constitutes the final accounting and return of your security deposit in accordance with Vermont law, specifically 14 V.S.A. § 4461.

Pursuant to 14 V.S.A. § 4461, the security deposit must be returned within fourteen (14) calendar days after the tenant vacates the premises or returns the keys, whichever is later, provided the landlord has the tenant's forwarding address. The deposit may be applied only to:

• Unpaid rent
• Cleaning necessary to return the unit to its original condition (excluding normal wear and tear)
• Repair of damage beyond normal wear and tear

Failure by the landlord to return the deposit (or provide the required itemized statement) within the 14-day period may result in forfeiture of the right to make any deductions and potential liability for double the amount wrongfully withheld, plus costs and reasonable attorney fees.

Security Deposit Amount and Cap

The security deposit you paid was $[[Original Security Deposit Amount]].

Under Vermont law (14 V.S.A. § 4461(c)), the maximum security deposit a landlord may require is the equivalent of two (2) months' rent. Your deposit complied with this cap.

Final Accounting and Itemized Statement of Deductions

Below is the complete itemized statement of any deductions. Supporting documentation (receipts, invoices, estimates, and photographs) is attached for every deduction.

Original Deposit: $[[Original Security Deposit Amount]]

Deductions:

1. Unpaid rent for the period [[Unpaid Rent Period(s)]]: $[[Unpaid Rent Amount]]

2. Cleaning to restore the premises to move-in condition (beyond normal wear and tear): $[[Cleaning Deduction Amount]]
Description: [[Detailed description of cleaning performed, e.g., professional carpet cleaning, appliance degreasing, removal of tenant-installed fixtures and patching]]

3. Repairs for damage beyond normal wear and tear: $[[Repair Deduction Amount]]
Description: [[Specific description of damage and repairs, e.g., drywall repair from door impact, replacement of broken window, repainting of marked walls]]

Total Deductions: $[[Total Deductions Amount]]

Net Amount Due to Tenant: $[[Net Refund Amount]]

Enclosed with this letter is:

• Check number [[Check Number]] in the amount of $[[Net Refund Amount]] made payable to [[Tenant Full Legal Name(s)]], or
• Confirmation of electronic transfer / direct deposit to the account on file.

Detailed Explanation of Deductions and Vermont Standards

Vermont law prohibits landlords from deducting for normal wear and tear. Normal wear and tear includes:

• Fading paint or carpet from sunlight and ordinary use
• Minor scuffs on walls or floors from regular living
• Worn spots on carpet from foot traffic in normal use areas
• Loose door hardware from ordinary operation

Damage beyond normal wear and tear for which deduction is permitted includes (examples only):

• Large holes in walls or doors from misuse
• Stains or burns on carpet or flooring that require replacement
• Broken windows, fixtures, or appliances caused by tenant, occupants, or guests
• Excessive dirt, pet waste, or trash requiring professional remediation

All deductions above have been calculated in good faith based on actual costs or reasonable estimates supported by documentation.

Forwarding Address Requirement and Deadline

You provided your forwarding address on [[Date Forwarding Address Provided]]. This triggered the 14-calendar-day deadline under 14 V.S.A. § 4461.

The 14-day period is calculated as calendar days. If the 14th day falls on a weekend or holiday, the deadline is the next business day in most interpretations; however, landlords are advised to return funds as early as possible within the window.

No Statutory Pre-Move-Out Inspection Requirement

Unlike some other states, Vermont law does not require a landlord to offer or conduct a pre-move-out inspection. Any pre-move-out walkthrough that occurred was voluntary and is documented separately if applicable: [[Pre-move-out inspection date and notes, or "None conducted"]].

Your Rights If You Dispute Deductions

If you believe any deduction is improper, you should:

1. Respond in writing within a reasonable time (recommended within 10 days of receipt of this letter) stating the specific items in dispute and providing any supporting evidence or photographs.

2. Request return of the disputed amounts.

Landlords are expected to attempt good-faith resolution. If the matter cannot be resolved, you may pursue remedies in Vermont small claims court (or superior court depending on amount), where a judge may award double damages, costs, and attorney fees if the landlord is found to have wrongfully withheld funds in violation of 14 V.S.A. § 4461.

Record Retention and Future Contact

Landlord will retain copies of this letter, the itemized statement, receipts, and photographs for a minimum of three (3) years as recommended practice.

For any questions regarding this accounting, contact the undersigned at the phone or email above.

Additional Guidance on Normal Wear and Tear vs. Deductible Damage

To assist both parties in understanding the line between normal use and chargeable damage, the following examples are provided (these are illustrative and not exhaustive):

Typically Normal Wear and Tear (NOT deductible):
- Faded paint or wallpaper from age and sunlight exposure
- Worn paths in carpet in high-traffic areas from ordinary foot traffic
- Minor nail holes from hanging pictures (standard size, properly patched or left)
- Loose or squeaky door hinges from repeated normal use
- Slight discoloration of grout or caulking in bathrooms from ordinary moisture
- Light scuff marks on hardwood or vinyl from moving furniture

Typically Beyond Normal Wear and Tear (deductible when documented):
- Multiple large holes in drywall larger than picture-hanger size
- Pet urine stains or odors requiring subfloor treatment or replacement
- Burns, cuts, or deep gouges in flooring that cannot be repaired without replacement
- Broken or missing window glass, screens, or hardware caused by impact or neglect
- Excessive trash, debris, or biohazard requiring professional hazardous-material cleaning
- Alterations made without permission (e.g., painted rooms in non-approved colors, removed fixtures without replacement)

Landlord has applied these standards in good faith when preparing the itemization above.

Sample Detailed Deduction Calculation Table

All amounts represent actual out-of-pocket costs or written third-party estimates obtained within a reasonable time after move-out.

Landlord Obligations and Tenant Remedies Summary (14 V.S.A. § 4461)

1. Return deposit or itemized statement with supporting docs within 14 calendar days after move-out/key return + receipt of forwarding address.

2. Permissible deductions strictly limited to unpaid rent, cleaning to original condition, and damage beyond normal wear and tear.

3. Failure to comply within the deadline generally forfeits the landlord's right to withhold any portion and may expose the landlord to liability for twice the amount wrongfully withheld plus costs and attorney fees.

4. Tenant must provide a current forwarding address in writing to trigger the 14-day clock.

5. No Vermont statute requires a pre-termination inspection offer (contrast with other jurisdictions).

Enclosures

The following are enclosed or attached to this letter:

1. Check or payment proof for the net refund amount
2. Itemized receipts, contractor invoices, or written estimates for all deductions exceeding reasonable thresholds
3. Dated photographs showing the condition at move-in (if available) and move-out
4. Move-in / move-out condition checklist (if used)
5. Any other supporting documentation: [[List additional, e.g. professional cleaning invoice]]

This letter and accounting are provided in compliance with Vermont Residential Rental Agreements law.

Sincerely,

[[Landlord or Authorized Agent Signature]]

[[Landlord or Property Manager Printed Full Name]]

[[Title, if Agent or Property Manager]]

[[Landlord / Management Company Name]]

[[Landlord Phone]] | [[Landlord Email]]

Date Signed: [[Date Signed on Letter]], -

STATUTORY NOTICE

This document is issued pursuant to 14 V.S.A. § 4461. The fourteen (14) calendar day return requirement, itemization mandate, permissible deduction categories, two-month rent cap, and penalties for noncompliance (forfeiture of deductions and potential double damages) are established under Vermont statute. No security deposit may be retained for normal wear and tear. Tenant's forwarding address is required to start the statutory clock.

*Template, not legal advice. This sample incorporates Vermont-specific rules from 14 V.S.A. § 4461. Verify current statutes, any municipal variations, and consult a Vermont-licensed attorney before using or relying on this form. Provisions current as of 2026-06.*

*Sources: 14 V.S.A. § 4461 (security deposits); Vermont Attorney General guidance on landlord-tenant matters; standard Vermont rental practice.*