Key answer: No statutory cap — fee must relate to actual damages.
| Rule | Detail |
|---|---|
| Fee cap | No statutory cap — fee must relate to actual damages |
| Grace period | None |
| Must be in lease? | Best practice — state the fee in the lease |
| Source | Highgate Associates v. Merryfield (1991) |
With monthly rent $1500, there is no statutory maximum. In Highgate Associates v. Merryfield (1991), the Vermont Supreme Court voided a $30/month late charge as an unenforceable penalty because it exceeded the landlord's actual costs of about $10.
What is the maximum late fee a landlord can charge in Vermont?
No statutory cap — fee must relate to actual damages.
When can a landlord charge a late fee in Vermont?
In Vermont, a fee can be charged as soon as rent is late, if the lease allows it.
Does the late fee have to be in the lease in Vermont?
Best practice — state the fee in the lease.
Can a landlord charge a daily late fee in Vermont?
Only if the lease allows it — a daily charge that exceeds the landlord's actual costs is likely to be voided as a penalty.
What happens if a landlord charges an excessive late fee in Vermont?
A fee that exceeds the landlord's actual damages can be voided as an unenforceable penalty (Highgate Associates v. Merryfield).
We have not confirmed a statewide rent-increase cap for Vermont. Notice requirements depend on the lease type (month-to-month vs. fixed term) — check your lease and local rules.
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Not legal advice. Verify against your lease and local rules.
Calculate your Vermont late fee