Renting out a room in your Kentucky home is a great way to generate income or offset expenses. Regardless of your circumstances and how long you plan to rent, having a solid room rental agreement that Kentucky landlords can rely on is crucial.
A Kentucky room rental agreement should outline the basics of the rental relationship, including applicable laws, required disclosures, and key lease terms. Below, we’ll break down everything you need to know to draft your room rental agreement in Kentucky.
Room Rental Laws
Room rental agreements must comply with Kentucky landlord-tenant law, which governs all residential rental relationships. These laws spell out important details of a room rental agreement, including:
- Security deposits
- Rent and fees
- Access and privacy
- Maintenance and habitability
- Lease terms and termination
- Eviction and breaches
State law allows for flexibility in choosing the type of room rental agreement Kentucky landlords use.
Different Types of Room Rental Agreements in Kentucky
There are several types of agreements or contracts you can use when renting out your room.
Verbal agreement: An informal, spoken arrangement between you and your tenant. A verbal agreement isn’t very common or recommended, as they are difficult to enforce if issues arise.
Fixed-term lease: A fixed-term lease runs for a specified period (usually 1 year). This type of agreement is ideal if you value reliability over flexibility, as the lease terms apply for the duration of the contract.
Month-to-month lease: A month-to-month lease, or tenancy at will, is a good option if you or your tenant needs a little extra flexibility. These contracts automatically renew each month until either you or your tenant gives notice to terminate.
Required Landlord Disclosures
Kentucky law requires you to disclose certain information to your tenants before signing the lease.
Lead-based paint: For any home built before 1978, you must disclose any known information about lead-based paint and its hazards and provide the required EPA pamphlet.
Landlord identification: You must include the name and contact information of the landlord in your room rental agreement in Kentucky (Ky. Rev. Stat. § 383.585).
Security deposit location: You must tell your tenant where you are holding their security deposit funds, including the bank and account number (Ky. Rev. Stat. § 383.580(1)).
Move-in checklist: You must also provide a checklist detailing the unit’s condition at move-in. You can use this checklist to compare conditions at move-out and calculate any necessary deductions (Ky. Rev. Stat. § 383.580(2-3)).
Security Deposit Rules
Kentucky law also sets rules for collecting a security deposit, from providing receipts to when you must return the funds.
Maximum security deposit: Kentucky law does not limit how much you can charge as a security deposit (Ky. Rev. Stat. § 383.580).
Pet deposits: In Kentucky, you may charge a pet deposit as long as the deposit is reasonable and clearly outlined in the lease template (Ky. Rev. Stat. § 383.580).
Security deposit receipt: In Kentucky, you must give your tenant a receipt for their security deposit that includes the bank location and account number. Security deposit funds must be in a separate deposit regulated by the state or federal government (Ky. Rev. Stat. § 383.580(1)).
Deduction tracking: Kentucky law allows you to deduct funds from the security deposit to cover excessive damages. Your tenant may also use their security deposit as last month’s rent, provided you agree (Ky. Rev. Stat. § 383.580).
Security deposit return: You must return the tenant’s security deposit, minus any deductions, within 1 month of the lease termination (Ky. Rev. Stat. § 383.580(6)).
Rent Payment Rules
Other rent payment laws apply to your Kentucky room rental agreement. Here’s what you need to know to stay compliant.
Late rent fees: Kentucky law does not limit what you can charge as a late fee; however, you must charge a reasonable fee and clearly disclose it in your lease template (Ky. Rev. Stat. §§ 383.545–383.705).
Right to withhold rent: Kentucky law allows tenants to withhold a reasonable amount for the repair of essential services the landlord doesn’t complete, such as heat, electricity, or gas (Ky. Rev. Stat. § 383.640).
Grace period: Since Kentucky law does not specify a mandated grace period, landlords may enforce rent due dates as outlined in the lease agreement (Ky. Rev. Stat. §§ 383.545–383.705).
Pet rent: You must clearly outline all pet fees, such as pet rent and deposits, in your Kentucky room rental agreement (Ky. Rev. Stat. § 383.565).
Rent Payment Increase Rules
Kentucky does not have rent control or rent stabilization laws, giving landlords greater flexibility to increase rent. However, there are still certain guidelines you must follow. Here’s what you need to know:
Rent payment increase frequency: As mentioned, rent control and stabilization laws do not exist in Kentucky. In other words, you may raise the rent as you deem necessary, but you must first give written notice. For fixed-term leases, you can increase the rent at the end of the term. For month-to-month leases, Kentucky law requires 30 days’ written notice.
Rent payment increase maximum: Kentucky does not limit how much you can raise the rent.
Rent control/stabilization: There are no rent control or rent stabilization laws in Kentucky (Ky. Rev. Stat. §§ 383.545–383.705).
Kentucky Room Rental Agreement Breaches
From a missed rent payment to lease violations, Kentucky room rental agreement breaches can happen to anyone. Here’s how you should respond to violations.
Failure to pay: If your tenant misses a rent payment, you may issue a 7-day Notice to Pay or Quit (Ky. Rev. Stat. § 383.660(2)).
Lease violations: For other lease violations, you may also issue a 14-day Notice to Cure or Quit. If your tenant violates the lease more than once in 6 months, you do not have to allow them time to fix the issue and can issue a 14-day Notice to Quit (Ky. Rev. Stat. § 383.660(1)).
Self-help evictions: In Kentucky, self-help evictions are illegal. All evictions should follow the legal process.
Terminating a Kentucky Room Rental Agreement
When it’s time to terminate your room rental agreement, Kentucky law outlines how you should end the contract.
Fixed-term: A fixed-term room rental agreement in Kentucky ends on the date outlined in the lease. In some cases, a tenant may terminate their lease early without penalty if they meet a qualifying condition, such as active duty military service, landlord harassment, or domestic violence (Ky. Rev. Stat. § 383.695).
Month-to-month: To end a month-to-month room rental, either the landlord or the tenant must give at least 30 days’ written notice (Ky. Rev. Stat. § 383.695).
Tenant’s right to terminate: In some cases, tenants may terminate their room rental agreement in Kentucky early if they experience certain life events, such as active duty military service, landlord harassment, or domestic violence.
Room abandonment: Kentucky law does not detail what you should do if your tenant abandons their lease before the end of its term; however, it is considered reasonable to store the property for a period of time and provide notice to the tenant, if possible (Ky. Rev. Stat. §§ 383.545–383.705).
Landlord Access Laws
Kentucky law allows you access to the room rental, provided you give proper notice and enter for a legitimate reason.
Advance notice: Kentucky law requires you to give your tenant at least 2 days’ notice before entering and allows entry only at reasonable times.
Immediate access: In an emergency, you may enter the property without notice.
Landlord harassment: Entering a room without providing the required notice or a good reason is considered harassment. In these cases, your tenant can often break their lease early and without penalty (Ky. Rev. Stat. § 383.700(2)).
Lease Agreement Renewal and Termination
State law also applies to lease agreement news and terminations in Kentucky. Here’s what you need to know.
Required renewals: Landlords are not required to renew a room rental agreement in Kentucky, provided the reason is not retaliatory or discriminatory.
Required notice: If you do not intend to renew your tenant’s room rental agreement in Kentucky, you must give notice in some cases. For fixed-term leases, you do not have to give any notice. For month-to-month agreements, however, the required notice is 30 days (Ky. Rev. Stat. § 383.695).
Month-to-month considerations: A Kentucky month-to-month lease agreement renews each month until one party gives the proper notice to terminate. To terminate a tenancy at will, either party must give at least 30 days’ written notice before the next rent due date (Ky. Rev. Stat. § 383.695).
Room Rental Agreement Kentucky FAQs
What to include in a Kentucky room rental agreement?
For a Kentucky room rental agreement, landlords should include important details about the contract, such as the rent amount and due date, security deposit terms, lease length, house rules, shared-space use, utilities, maintenance duties, guest and pet policies, and move-out requirements.
How do I legally rent out a room?
To legally rent out a room in Kentucky, you must follow state and local codes. Create a written room rental agreement in Kentucky using property management software that provides the required disclosures for you and your tenant to sign.
How to make a Kentucky room rental agreement?
Use a simple Kentucky room rental agreement template from a trusted landlord software. Choose a printable PDF you can fill out, customize with your rent terms, house rules, and disclosures. Then, have both parties sign and keep copies for your records.
