Most residential landlords require tenants to pay a security deposit to cover any repairs needed when the tenant moves out, or to cover the tenant’s failure to pay the last month's rent.

Laws vary from state to state, but many states have statutes that provide the maximum amount of security deposit a landlord may require for a residential lease and the costs for which the landlord may use the security deposit (cleaning, repairs, unpaid rent) following termination of the lease.

These laws also provide a specific deadline (often 30-60 days) for the landlord to return the tenant’s security deposit following termination of the lease—after deducting any amount properly withheld, as allowed by law.

In Vermont, the regulation of security deposits for residential leases is governed by state statutes. Vermont law limits the maximum amount of a security deposit to no more than two months' rent. Landlords can use the security deposit for covering the costs of repairs for damage beyond normal wear and tear, cleaning the unit to return it to the condition it was in at the beginning of the tenancy, and for unpaid rent. Upon termination of the lease, Vermont law requires landlords to return the security deposit, minus any lawful deductions, within 14 days if the tenant has vacated the unit at the end of the lease, or within 60 days if the lease was terminated early or the landlord has a claim against the deposit. The landlord must provide an itemized list of deductions made from the security deposit. If the landlord fails to comply with these requirements, the tenant may be entitled to double the portion of the security deposit wrongfully withheld.