The bill H.565, introduced by Representative Wood, aims to regulate security deposits for residential rental agreements and mobile home parks in Vermont. It proposes that landlords and mobile home park owners cannot charge or receive a security deposit that exceeds three months' rent or lot rent. Additionally, the bill mandates that any security deposit must be maintained in an interest-bearing account, with the accrued interest not counting towards the maximum limit of the deposit. The bill also allows municipalities to adopt ordinances governing security deposits, provided they do not conflict with the minimum protections outlined in the bill.

Furthermore, the bill includes a transition period allowing landlords and mobile home park owners to retain security deposits that exceed the new limit if the rental agreement was in effect before July 1, 2026. It requires that any security deposits collected before this date be deposited into an interest-bearing account within 30 days after July 1, 2026. The act is set to take effect on July 1, 2026.

Statutes affected:
As Introduced: 9-4461, 10-6244