Renting Out Your Property in Vermont: A Guide for Landlords

Familiarize yourself with Vermont's landlord-tenant laws, particularly Title 9, Chapter 137 of Vermont Statutes. Key areas include security deposit limits (maximum of one month's rent for unfurnished units), notice requirements for entry (48 hours), and tenant rights. The Vermont Department of Housing and Community Development website offers resources for landlords.

Schedule necessary inspections to ensure your property meets Vermont's health and safety standards. This may include fire safety inspections, electrical inspections, and general building code compliance. Contact your local municipality for specific requirements, as they may vary by location.

Verify local zoning laws permit rental use of your property. Some Vermont municipalities (like Burlington) require rental registration or certificates of compliance. Contact your town or city clerk's office to determine if you need to register your rental property or obtain permits.

Create a rental application to screen potential tenants. Include sections for personal information, rental history, employment details, income verification, references, and authorization for background and credit checks. Ensure your screening process complies with Fair Housing laws, which prohibit discrimination based on protected characteristics.

Develop a detailed checklist documenting the condition of the property before move-in and after move-out. Include all rooms, fixtures, appliances, and exterior areas with space for notes and photographs. This document helps prevent disputes about security deposit deductions and provides evidence of property condition.

Federal law requires landlords of properties built before 1978 to disclose known information about lead-based paint and provide tenants with the EPA pamphlet 'Protect Your Family from Lead in Your Home.' Vermont has additional lead disclosure requirements under the Vermont Lead Law. Even if you're unsure about lead paint, you must provide this disclosure.

Vermont law requires landlords to provide a written receipt for security deposits. The receipt should include the amount received, date of receipt, and where the deposit will be held. Note that Vermont landlords must return security deposits within 14 days of lease termination, with an itemized list of any deductions.

Create a document outlining house rules and policies not covered in the lease. This may include quiet hours, guest policies, maintenance responsibilities, pet policies, smoking rules, and waste disposal guidelines. Ensure all rules comply with Vermont law and don't infringe on tenants' rights.

Create a form to notify tenants when you need to enter the property. Vermont law requires at least 48 hours' notice before entering a tenant's unit except in emergencies. The form should include the date, time, and purpose of entry, with space for tenant acknowledgment.

Create a comprehensive lease agreement that complies with Vermont law. Include terms for rent amount and due date, lease duration, security deposit terms, maintenance responsibilities, utilities, entry notice, and grounds for termination. Vermont prohibits certain lease provisions, such as waiving the right to a jury trial or requiring tenants to pay landlord's legal fees.

Vermont law doesn't require landlords to place security deposits in separate accounts, but it's a best practice. If you collect interest on the deposit, Vermont law requires you to pay that interest to the tenant when returning the deposit. Document where you're holding the deposit as you'll need to include this in the security deposit receipt.

Obtain appropriate insurance coverage for your rental property. Standard homeowner's insurance typically doesn't cover rental activities. Look for a landlord or rental dwelling policy that covers property damage, liability, and potentially lost rental income. Consider requiring tenants to obtain renter's insurance as well.

Set up a system for collecting and tracking rent payments. Consider online payment options, which provide documentation of payment history. Establish clear policies for late payments, including any grace periods and late fees (which must be reasonable under Vermont law).

Establish a clear process for tenants to report maintenance issues. Vermont landlords must maintain rental properties in compliance with health and safety codes. Prompt attention to maintenance requests helps prevent small issues from becoming major problems and demonstrates compliance with your legal obligations.

Research tax implications of rental income. You'll need to report rental income on both federal and Vermont state tax returns. Keep detailed records of income and expenses, as many costs associated with rental property are tax-deductible. Consider consulting with a tax professional familiar with rental property taxation.