Kentucky Security Deposit Collections & Holdings

Kentucky Security Deposit Collections & Holdings

Last Updated: February 3, 2023 by Ashley Porter

To learn about laws on security deposit returns in Kentucky, click here.

Maximum Security Deposit Allowed in Kentucky

There is no limit on how much a landlord can collect for a security deposit in Kentucky. While other states impose a maximum security deposit limit, such as one month’s rent, Kentucky does not.

Can Landlords Charge an Additional Pet Deposit in Kentucky?

Yes, landlords can collect an additional pet deposit in Kentucky, except for service dogs and emotional support animals.

How Much Rent Can a Landlord Collect Upfront in Kentucky?

There is no limit on the amount of rent that can be collected upfront in Kentucky. Many states have a limit on the amount of rent that can be collected at once, but Kentucky does not.

Security Deposit Collections in Kentucky

When collecting a security deposit, landlords in Kentucky must provide the tenant with a list of any existing damage to the rental unit.

Do Landlords Have to Provide a Receipt for the Security Deposit in Kentucky?

While landlords in Kentucky must provide a written statement to tenants containing information such as where the security deposit will be held, an additional receipt of the deposit is not required to be provided.

What Obligations Do Landlords Have to Establish the Condition at Move-in in Kentucky?

To collect a security deposit, landlords in Kentucky must provide a comprehensive list of the existing damage to the rental unit (if any). The tenant must have the opportunity to inspect the unit and either:

  • Sign with the landlord to agree with the list
  • Submit a signed statement of disagreement with all or a portion of the list

Security Deposit Holdings in Kentucky

Kentucky security deposits must be held in separate accounts with any agency of the United States government or Kentucky bank or lending institution and may not be commingled with other funds. Tenants must be informed of the location of the depository and account number.

If the landlord does not place the security deposit in a separate account, they are not entitled to retain any portion of the security deposit.

Are Tenants Entitled to Interest on Their Security Deposit in Kentucky?

Kentucky law does not require landlords to provide interest on held security deposits.

How Are Security Deposits Accounted for in Kentucky?

Security deposits are not considered taxable income when they are collected.

What Happens to a Security Deposit When the Property is Sold in Kentucky?

When a property is sold in Kentucky, the original landlord must send written notice to the tenant regarding the transfer. The new owner assumes responsibility for the security deposit and must handle it according to the same rules.