Vermont Late fees

What this means for landlords

A late fee is meant to cover the cost of rent coming in late, not to punish the tenant. The verified rule above sets out what Vermont allows. A fee that breaks the rule may not be collectable, and it can hurt you in an eviction case.

Step by step

1. Put the late fee, the due date and any grace period in the written lease.
2. Check that the amount fits the rule above.
3. Apply the fee the same way to every tenant.
4. Show late fees as separate line items on the tenant ledger.
5. Give the tenant a written notice of the fee when you charge it.

Common mistakes to avoid

• Charging a fee that isn't in the lease.
• Setting the fee higher than the rule allows.
• Charging the fee before any grace period has passed.
• Adding daily fees that keep growing with no cap.
• Treating unpaid late fees as unpaid rent in an eviction notice.

This is general information, not legal advice. The verified rule and source above control. Check the source or a local attorney for your situation.