Kentucky Security Deposit Laws: Renter Protections Explained

Security deposits are a common part of renting a home or apartment in Kentucky. Knowing your rights and responsibilities can help ensure your deposit is protected and promptly returned when you move out. This guide explains the key Kentucky security deposit laws and what every renter should know.

Understanding Security Deposits in Kentucky

In Kentucky, landlords commonly ask for a security deposit before you move into a rental property. This deposit is held as insurance against damage beyond normal wear and tear or unpaid rent. Kentucky rental law sets clear guidelines for how these deposits must be handled by landlords, benefiting both parties.

How Much Can Be Charged?

Kentucky law does not limit the amount a landlord can charge as a security deposit. However, the amount should be stated clearly in your written lease agreement.

Landlord Responsibilities for Security Deposits

• Written Receipt Required: Landlords must provide a written list describing the condition of the rental unit and any existing damages at move-in.
• Separate Bank Account: Security deposits must be kept in a separate bank account used only for tenant deposits.
• Move-Out Inspection: When you move out, the landlord must prepare an itemized list of damages claimed against your deposit (beyond normal wear and tear).

Return of Security Deposit: Timeline and Rules

Kentucky law requires landlords to follow these steps when returning your deposit:

• Within 30 days after you move out, the landlord must provide you with an itemized list of any deductions and refund the remaining deposit.
• If the landlord fails to return your deposit or provide the itemized list within 30 days, you may be entitled to a full refund.

Withholding Part or All of the Deposit

Landlords are allowed to deduct from your security deposit only for:

• Unpaid rent or utility bills
• Repair of damage beyond normal wear and tear
• Other reasonable expenses described in your lease

They cannot deduct for normal wear, such as minor scuffs, faded paint, or worn carpets from typical use.

Relevant Official Forms for Renters

• Move-in/Move-out Inspection Checklist (No standard state form number)
  When to use: Both you and your landlord should complete and sign this checklist when you move in and out. This helps document the property's condition.
  Sample Move-in/Move-out Checklist
• Written Security Deposit Notice and Itemization
  When to use: After you move out, your landlord must provide you with a written itemized list if any part of your deposit is withheld.
  Ensure you receive this list or request it in writing if not received within 30 days.

How to Dispute a Security Deposit Deduction or Non-Return

If you disagree with deductions from your deposit, or your landlord does not return it on time:

• Communicate with your landlord in writing and keep copies of all correspondence.
• If unresolved, you can file a claim in your local district Small Claims Court for up to $2,500.
• You may use documentation (photos, move-in/move-out lists) as evidence.

Which Tribunal Handles Rental Disputes?

In Kentucky, the Kentucky Court of Justice (specifically District Courts) handles residential tenancy issues, including security deposit disputes.

The key rental law is the Kentucky Revised Statutes Chapter 383: Landlord and Tenant¹.

1. What can a landlord deduct from my security deposit in Kentucky?
   Landlords in Kentucky may deduct unpaid rent, the cost of repairing damage beyond normal wear and tear, unpaid utilities, and other items mentioned in the lease. They must provide an itemized written statement within 30 days.
2. How do I make sure my security deposit is protected?
   Make sure to get and keep a signed move-in checklist and take clear photos. Upon move-out, request an itemized notice from your landlord if you don't receive one in 30 days.
3. What if my landlord doesn't return my deposit?
   You can write a formal demand letter. If you don’t get your deposit after 30 days, you may be able to file a claim in Kentucky Small Claims Court for up to $2,500.
4. Is there a maximum security deposit allowed by Kentucky law?
   No, Kentucky does not set a legal cap on security deposit amounts. Your lease should state the agreed amount.
5. Do I have to be present during the move-out inspection?
   No, but it’s a good idea to request to be present and to document the move-out condition yourself with photos and checklists.

Conclusion & Key Takeaways

• Kentucky law requires landlords to follow clear procedures for holding and returning security deposits.
• You have rights: documentation, notice of deductions, and timely deposit return.
• If problems arise, Kentucky Small Claims Court can help resolve deposit disputes.

Need Help? Resources for Renters

• Kentucky Court of Justice – Find your local District Court for rental disputes
• Kentucky Housing Corporation – Tenant & Landlord Resources
• Legal Aid Society of Louisville – Housing Help
• Read Kentucky Revised Statutes Chapter 383: Landlord and Tenant

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1. Kentucky Revised Statutes Chapter 383: Landlord and Tenant
2. Kentucky District Courts – Small Claims
3. Kentucky Housing Corporation – Landlord-Tenant Information

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