Kentucky security deposit laws are detailed under the Kentucky Revised Statutes, Title 32, Chapter 383 (Sections 383.580 to 383.590). These laws provide clear guidelines on how landlords must handle security deposits, ensuring both landlords and tenants are aware of their rights and responsibilities under Kentucky law. Please note that rules and regulations may vary by municipality.
Kentucky law does not place a statutory limit on the amount a landlord may charge as a security deposit. The amount is typically negotiated between the landlord and tenant and specified in the lease agreement.
Landlords in Kentucky are required to place security deposits in a separate, federally insured bank or financial institution account. The account must be used exclusively for holding security deposits and should not be commingled with the landlord’s other funds.
Upon collecting the security deposit, landlords must provide the tenant with the location and account number where the deposit is being held. Additionally, landlords are required to conduct a move-in inspection with the tenant and create a list of any existing damages or issues in the rental unit. Both the landlord and tenant should sign this document.
Kentucky law does not require landlords to pay interest on security deposits, regardless of whether the deposit is held in an interest-bearing account.
The landlord may retain the deposit to cover last month’s rent if the tenant does not demand the return of the deposit within 30 days.
If the tenant leaves with any refund due, the landlord shall send notification to the last known or reasonably determinable address of any refund due the tenant. If the landlord doesn’t receive a response within 60 days of sending the notification, the landlord may retain the deposit free of any claim of the tenant.
At the termination of occupancy, the landlord shall inspect the premises and compile a comprehensive listing of any damage to the unit which is the basis for any charge against the security deposit and the estimated dollar cost of repairing such damage.
The tenant shall then have the right to inspect the premises to ascertain the accuracy of such listing. The landlord and the tenant shall sign the listing, which signatures shall be conclusive evidence of the accuracy of such listing. If the tenant shall refuse to sign such listing, he shall state specifically in writing the items on the list to which he dissents, and shall sign such statement of dissent.
A tenant who disputes the accuracy of the final damage listing given may bring an action in District Court.
Kentucky landlords may only deduct from the security deposit for:
If a landlord fails to return the security deposit or provide an itemized list of deductions within the required timeframe, they forfeit the right to retain any portion of the deposit and may be required to return the full amount to the tenant. Tenants may also sue for the deposit and recover attorney’s fees and court costs if they prevail.
If a rental property changes ownership, the new owner must either return the security deposit to the tenant or transfer the deposit to a new account and inform the tenant of the transfer. The new owner is then responsible for complying with the original terms of the lease and Kentucky law regarding the security deposit.
DISCLAIMER: Security deposit laws may vary by county or municipality. The information provided by Build Whale, Inc. is for general informational purposes only and should not be construed as legal advice. It is not a substitute for consultation with a qualified attorney. While we strive to provide accurate and up-to-date information, Build Whale, Inc. makes no guarantees or warranties regarding the accuracy, completeness, or reliability of the information presented.