In a rental relationship, it can be helpful for both sides to have a little breathing room. Instead of being locked into a long-term lease, a tenancy at will automatically renews each month and continues until either the landlord or their tenant gives notice to end the arrangement. This type of agreement is invaluable if landlords value flexibility or if their tenants’ plans or circumstances may change quickly.
The increased flexibility in terms does not translate to increased flexibility with the law, however. A Kentucky month-to-month lease agreement must comply with all applicable laws regarding disclosures, security deposits, rent collection, and more. Below, we’ll take a closer look at everything landlords need to know about a month-to-month rental agreement in the Bluegrass State.
Disclosures (4)
There are certain disclosures landlords must include along with the lease agreement. These disclosures help protect both landlords and tenants, ensuring everyone is on the same page from the start.
- Lead-based paint: Federal law requires landlords to disclose any known information about lead-based paint and its hazards in homes built before 1978. Landlords must also give tenants a copy of the EPA’s lead safety pamphlet.
- Landlord identification: Kentucky law requires landlords to provide the name and contact information of the landlord or property manager (Ky. Rev. Stat. § 383.585).
- Security deposit location: Landlords must share the information of the bank holding the security deposit funds, including account number (Ky. Rev. Stat. § 383.580(1)).
- Move-in checklist: State law requires landlords to give their tenant a detailed list of any existing damage in the unit, which they may add to, as needed. At the end of the rental agreement, landlords can use this checklist to compare the unit’s condition and calculate deductions (Ky. Rev. Stat. § 383.580(2-3)).
Optional Disclosures and Addenda
Although not required by law, including these optional disclosures can help prevent any confusion or disputes down the road.
Asbestos: Informs tenants of any known asbestos in the unit and ways to limit or prevent exposure.
Bed bugs: Discloses any known or suspected bed bug infestations in the unit or adjacent units.
Late/returned check fees: Outlines the fees for late or returned rent checks. Kentucky law does not place a limit on late fees, but caps returned check fees at $50 (Ky. Rev. Stat. § 514.040(4)(b)).
Medical marijuana use: Explains the rules regarding the use of medical marijuana in the unit, including any limitations.
Mold: Informs tenants of any mold present in the unit, along with treatment and remediation options.
Non-refundable fees: Lists any non-refundable fees that landlords charge in the residential lease agreement template.
Shared utilities: If any units in the building share a utility meter, landlords must explain how they split utility charges between tenants.
Smoking: Reviews the rental’s smoking policy, including any designated smoking areas on the property.
Additional Kentucky Month-to-Month Lease Laws
These additional laws apply throughout the duration of a Kentucky month-to-month lease agreement. Here’s everything landlords need to know.
Notice to Terminate a Month-to-Month Agreement
Kentucky requires either party to give a standard notice to terminate a tenancy at will.
Required notice for tenant: Tenants must give at least 30 days’ written notice before terminating a month-to-month lease (Ky. Rev. Stat. § 383.695).
Required notice for the landlord: Landlords must also provide tenants with at least 30 days’ written notice to terminate a month-to-month agreement (Ky. Rev. Stat. § 383.695).
Laws Governing Rent Increases
While it’s true that a month-to-month lease gives landlords more flexibility, they must still give their tenant notice before increasing the rent.
Kentucky does not have rent control or stabilization laws, meaning landlords can raise rent as they see fit. However, landlords must give their tenants advance notice before this increase takes effect. Most landlords choose to give 30 days’ notice.
Lease Violations and Eviction
From time to time, lease violations may occur. From missed rent payments to lease abandonment, Kentucky law outlines how landlords should handle these violations to quickly get back on track.
Missed rent payment: If a tenant misses a rent payment, the landlord may issue a 7-day Notice to Pay or Quit before filing for eviction (Ky. Rev. Stat. § 383.660).
Lease violation: For other lease violations, landlords may also issue a 14-day Notice to Cure or Quit. If the violation occurs more than once in 6 months, they may issue a 14-day Notice to Vacate (Ky. Rev. Stat. § 383.660).
Lease abandonment: If a tenant breaks their lease early, they may be responsible for the remaining rent. Landlords should make an effort to re-rent the unit to mitigate a tenant’s losses (Ky. Rev. Stat. § 383.660).
Self-help evictions: In Kentucky, self-help evictions are illegal. Landlords should never attempt to remove a tenant on their own.
Rent Payment Laws
Kentucky’s rent payment rules are reasonable and strike a fair balance between the parties.
Rent control/stabilization: Kentucky does not have rent control or rent stabilization laws.
Late rent fees: State law does not cap late fees. Landlords may charge a reasonable late fee, provided landlords clearly disclose it in the lease template.
Grace period: Kentucky law does not require landlords to offer a grace period for late rent payments.
Tenant’s right to withhold rent: Tenants have the right to withhold a reasonable amount from rent to cover an essential service, such as heat or gas, that their landlord refused or hasn’t completed (Ky. Rev. Stat. § 383.640).
Pet rent laws: Landlords may charge pet rent or collect a pet deposit, as long as the amounts are reasonable and the lease template clearly outlines the charges.
Security Deposits
Kentucky law clearly outlines how landlords should handle security deposits, from where landlords store the funds to when they must return them. Here’s what you need to know.
Maximum amount: Kentucky does not limit the amount landlords may collect as a security deposit.
Deposit receipt: Landlords must hold their tenant’s security deposit funds in a separate account that is backed and regulated by the state of Kentucky or the Federal government. Landlords must also give their tenant the location and the account number for the account (Ky. Rev. Stat. § 383.580(1)).
Interest payments: State law does not require landlords to pay interest on security deposits.
Security deposit return: Landlords must return their tenant’s security deposit, minus any deductions, within 30 days of the lease termination (Ky. Rev. Stat. § 383.580(6)).
Deductions: Landlords may deduct from the security deposit to cover unpaid rent or damages beyond the normal wear and tear. They must always provide an itemized list of deductions to clarify and support their claims. Kentucky law also allows the tenant to use their security deposit as last month’s rent, provided the landlord agrees (Ky. Rev. Stat. § 383.580).
Property Access Laws
Occasionally, landlords must enter the unit, whether to complete maintenance or repairs or to address an emergency. Here’s when and how to legally enter the property.
Advance notice: Kentucky law requires landlords to give tenants at least 2 days’ notice before entering the unit, and landlords may enter only at “reasonable” times (Ky. Rev. Stat. § 383.615(3)).
Immediate access: Landlords may enter the property without notice in an emergency.
Harassment: Repeated entry without giving the required notice, or entering without just cause, may lead to civil and/or financial penalties.
