Kentucky Security Deposit and Damage Deposit Rules Explained

Understanding the difference between security deposits and damage deposits can help Kentucky renters protect their rights and finances. Kentucky law sets firm requirements for how deposits are handled, when they must be returned, and what can be deducted. Here’s a guide for renters who want to make sure they’re treated fairly when moving in, living, or moving out.

Security Deposit vs. Damage Deposit: What’s the Difference?

In Kentucky, most rental agreements use the term security deposit. Rarely, you may see a "damage deposit," but Kentucky law mainly discusses security deposits, which cover:

• Unpaid rent
• Unpaid utility bills (if required by the lease)
• The reasonable cost to repair damages caused by the renter (beyond normal wear and tear)

Landlords cannot use your security deposit for repairing normal wear and tear—only for damage or unpaid bills.

How Kentucky Handles Security Deposits

Deposit Storage Requirements

Landlords are legally required to keep security deposits in a separate account. The account’s location (bank name and account number) must be listed in the lease or given to renters in writing. This protects your money in case the property changes ownership.^[1]

Move-In and Move-Out Checklists

Landlords must provide a list (sometimes called a “damage list” or “itemized list of damages”) at move-in and move-out. Renters should:

• Receive a list describing the property’s condition and all existing damage at move-in
• Be allowed to inspect the dwelling and add comments
• Use the checklist in case of a dispute about deductions at move-out

Landlords must make a new move-out inspection list after you move out. This protects renters and landlords from disagreements about the property’s condition.

Maximum Deposit and Deductions

Unlike some states, Kentucky law doesn’t set a maximum amount for security deposits. The rental agreement dictates the amount. However, what the landlord can deduct is limited to:

• Unpaid rent
• Unpaid utility bills owed under the lease
• Damage beyond normal wear and tear

If the landlord deducts any amount, they must provide an itemized written statement showing why money was withheld.

Returning Security Deposits: Kentucky Renter Rights

Deposit Return Timeline

The landlord must:

• Return the unused portion of your security deposit (or provide an itemized list of deductions) within 30 days after you move out and give a forwarding address
• If you don’t claim your deposit within 60 days of notification, you may lose the right to it

It’s vital to give your landlord a forwarding address in writing when you move out. Keep records of all communications.

What to Do If Your Deposit Isn’t Returned

If you believe your landlord isn’t following the rules:

• Send a written request by mail or email referencing your lease and move-out date
• If there’s no response, you can file a small claims case in your local Kentucky District Court

Important Forms and Resources for Kentucky Renters

• Kentucky Move-In/Move-Out Checklist
  Although Kentucky does not have a standard statewide form, landlords must provide a list of existing damages at both move-in and move-out. Sign and keep copies each time as your personal record.
• Small Claims Complaint Form – AOC-175
  • Use if you need to file in District Court for an unreturned deposit or dispute over damages.
  • Example: If your landlord withholds your entire deposit with no explanation, complete AOC-175 Small Claims Complaint and file with your local courthouse.

Where to Get Help or Make a Complaint

In Kentucky, the District Court hears small claims about deposits, and the Kentucky Commission on Human Rights handles housing discrimination complaints.

Relevant Kentucky Security Deposit Law

• Kentucky Revised Statutes – Chapter 383: Landlord and Tenant^[1]

The law protects both renters and landlords, so review the official legislation if you have questions or disagreements.

FAQ: Kentucky Security and Damage Deposit Rules

1. Is there a legal limit on how much a landlord can charge for a security deposit in Kentucky?
   No, Kentucky does not set a maximum amount for security deposits. The lease decides the amount, but all other protections still apply.
2. How soon after moving out should I get my deposit back?
   Your landlord must return your deposit or a written list of deductions within 30 days after you move out and provide a forwarding address.
3. What counts as normal wear and tear in Kentucky?
   Normal wear and tear are minor issues from ordinary living, like faded paint or carpet traffic marks. Damages like holes in walls or broken appliances can be deducted from your deposit.
4. What if I did not receive a move-in inspection list?
   The law requires landlords to give you this. Lack of a move-in checklist can limit a landlord’s ability to make deductions. Keep any documentation you get upon moving in.
5. Can my landlord keep my deposit if I move out early?
   They may use part or all of the deposit for unpaid rent or costs specified in your lease. You should check your agreement and document your move-out.

Key Takeaways for Kentucky Renters

• Landlords must store deposits in a separate account and provide inspection lists at move-in and move-out
• Your deposit must be returned within 30 days (or an itemized deduction statement provided) after move-out
• Record everything—photos, emails, and signed checklists protect your rights

Staying informed about your rights makes the rental process safer and less stressful.

Need Help? Resources for Renters

• Kentucky District Court (handles small claims about security deposits)
• Kentucky Commission on Human Rights (for housing discrimination)
• Kentucky Housing Corporation (renters' resources and support)
• Kentucky Landlord-Tenant Statutes (KRS Chapter 383)

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1. See: KRS 383.580: Security Deposits Rules, KRS Chapter 383

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