Bill > H0565

This bill, effective July 1, 2026, aims to protect tenants and leaseholders by establishing new rules for security deposits, which are refundable payments made to secure a tenant's obligations like paying rent and maintaining a property. Specifically, landlords and mobile home park owners will be prohibited from collecting a security deposit that is more than three months' rent or three months' lot rent, respectively. Furthermore, any security deposit collected must be held in an interest-bearing account on behalf of the tenant or leaseholder, with the accrued interest not counting towards the three-month limit. However, existing rental agreements or leases in effect before July 1, 2026, are exempt from the three-month limit, though landlords and park owners must still deposit these older security deposits into an interest-bearing account within 30 days of that date.

Housing and Urban Affairs

https://legislature.vermont.gov/bill/status/2026/H.565