| Quick Facts | Answer |
| Maximum / Limit | No Limit |
| Receipt Requirement | None |
| Inventory Requirement | Yes |
| Interest Requirement | None |
To learn about laws on security deposit returns in Kentucky, click here.
This article discusses regulations contained in Kentucky’s Uniform Residential Landlord-Tenant Act (URTLA). While this covers most Kentucky tenants, not all jurisdictions in Kentucky have adopted the URLTA yet. Always check local laws.
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.
Sources
- 1 Ky. Rev. Stat. § 383.580(2)
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Prior to tendering any consideration deemed to be a security deposit, the prospective tenant shall be presented with a comprehensive listing of any then-existing damage to the unit which would be the basis for a charge against the security deposit and the estimated dollar cost of repairing such damage. The tenant shall have the right to inspect the premises to ascertain the accuracy of such listing prior to taking occupancy. The landlord and the tenant shall sign the listing, which signatures shall be conclusive evidence of the accuracy of such listing, but shall not be construed to be conclusive to latent defects. 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.
Source Link - 2 Ky. Rev. Stat. § 383.580(1)
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All landlords of residential property requiring security deposits prior to occupancy shall be required to deposit all tenants’ security deposits in an account used only for that purpose, in any bank or other lending institution subject to regulation by the Commonwealth of Kentucky or any agency of the United States government. Prospective tenants shall be informed of the location of the separate account and the account number.
Source Link
- 3 Ky. Rev. Stat. § 383.580(4)
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No landlord shall be entitled to retain any portion of a security deposit if the security deposit was not deposited in a separate account as required by subsection (1) of this section and if the initial and final damage listings required by subsections (2) and (3) of this section are not provided.
Source Link - 4 Ky. Rev. Stat. § 383.600
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(1) Unless otherwise agreed, a landlord who conveys premises that include a dwelling unit subject to a rental agreement in a good faith sale to a bona fide purchaser is relieved of liability under the rental agreement and KRS 383.505 to 383.715 as to events occurring after written notice to the tenant of the conveyance.
(2) Unless otherwise agreed, a manager of premises that include a dwelling unit is relieved of liability under the rental agreement and KRS 383.505 to 383.715 as to events occurring after written notice to the tenant of the termination of his management.
Source Link
