The Kentucky residential lease agreement (“rental agreement”) outlines the conditions agreed upon by a landlord and tenant for the residential use of real estate. The contract will include the length of the agreement (“term”), the payment amount (“rent”), as well as the obligations of the tenant while leasing the property.
Kentucky Lease Agreement Disclosures
The following disclosures that are governed by Kentucky’s Uniform Residential Landlord and Tenant Act (URLTA) are either required for some or all residential lease agreements in Kentucky.
Landlord’s Name & Address
Applicable to all rental units in Kentucky.
Landlords, owners, or any authorized individuals that act on the landlord’s behalf must provide the tenant with their name and business address. Typically, this information is in the rental agreement so future legal notices and demands that are sent by the tenant can be properly delivered. The tenant should be notified immediately if there are any changes in contact information.
Applicable to all rental units in Kentucky that charge a security deposit.
Kentucky landlords that intend to charge a security deposit are required to provide an inventory of the rental unit’s condition in the form of a move-in checklist. This checklist does not necessarily have to be attached to the rental agreement, but it does need to be inspected and agreed to by the prospective tenant before taking occupancy.
The checklist should include any existing damage to the unit or specific furnishings that are included (such as appliances or furniture) that must be returned in the same state they were upon move-in.
Security Deposit Holdings Disclosure
Applicable to all rental units holding a security deposit.
When charging and holding a security deposit, a Kentucky landlord must disclose the holding information to the tenant in the rental agreement. This includes the location of the funds which shall be regulated by the Commonwealth of Kentucky and the account number.
SECURITY DEPOSIT HOLDINGS DISCLOSURE. The security deposit of $____, highlighted in this lease, can be found at the following location:
Lead-Based Paint Disclosure
Applicable to any rental units built prior to 1978.
It is a federal law in the United States that any home built prior to 1978 must disclose the risks posed by lead-based paints. This law requires landlords in Kentucky to:
- Fill out and attach this lead-based paint disclosure form to the lease agreement.
- Provide the tenant with an Environmental Protection Agency (EPA)-approved pamphlet about the dangers of lead-based paint.
- Provide additional records or reports about the presence or hazards of any known lead-based paint in the unit. For multi-unit buildings with common areas, this includes information from building-wide evaluations.
Optional Disclosures & Addendums (Recommended)
The following lease agreement disclosures and addendums are not required by Kentucky law in residential lease agreements, but either help reduce future conflicts with tenants or reduce legal liability for landlords.
- Medical Marijuana Use – it is recommended to state where medical marijuana use is and isn’t allowed on the property so that expectations are clear. Kentucky law allows landlords to restrict marijuana usage to non-smoking methods only or control where users can smoke to not interfere with other tenants.
- Late and Returned Check Fees – it is recommended that landlords disclose in the lease any late fees or returned (bounced) check fees that they intend to charge. No late payment fee shall be made unless the fee is unpaid for five days after the date it was due. Kentucky does not limit how high these fees can be, but they should be considered reasonable (often no more than 20% of rent) and reflect the actual expenses incurred by the landlord as a result of a late payment. They must also be charged only after the agreed upon due date for rent, dictated in the lease.
- Shared Utilities Arrangements – for rental units with shared utilities, it is recommended to disclose the specifics of how they are shared, and how each party’s bill is calculated, so that tenants have a reasonable expectation of what they owe each month.
- Bed Bug Disclosure – for rental units with a history of infestation, it is recommended to establish an understanding of the current status of bed bugs at the property in case of a future infestation and to provide information on the protocol for handling an infestation.
- Asbestos Disclosure – for rental units built prior to 1981, asbestos was a common building material. This disclosure will notify the tenant to take certain precautions to minimize the chance of disturbing the asbestos fibers (i.e. no sanding, pounding, modifications or repairs, without the landlord’s consent). The disclosure will also notify the tenant of their obligation to immediately notify the landlord if any ceilings or walls begin to deteriorate.
- Mold Disclosure – it is recommended to disclose the current mold status of a property in the lease to protect against future liability of mold damages due to a tenant’s negligence during the lease term.
- Subleases and Assignments – it is recommended to disclose that a tenant shall not sublease or assign the lease without the prior, written permission from the landlord.