Overview
Kentucky’s security deposit laws are outlined in Kentucky Revised Statutes § 383.580. These laws provide guidelines for how landlords should handle security deposits, including rules on collection, storage, return, and permissible deductions.
The state sets clear rules for the return of deposits and requires landlords to provide itemized lists of deductions. If a landlord fails to comply, penalties may apply, including the return of the deposit with interest and additional damages.
This guide covers:
How much landlords can charge
Return deadlines and rules
Allowable deductions
Penalties for non-compliance
Related Statute: Kentucky Revised Statutes § 383.580
1. Security Deposit Limits & Storage Requirements
Maximum deposit: Kentucky law does not specify a maximum limit on the amount a landlord can charge for a security deposit. The deposit amount is typically agreed upon in the lease agreement.
Storage requirements: Landlords are not required to place security deposits in a separate or interest-bearing account under state law. However, some local ordinances may impose additional requirements, so landlords should verify with local regulations.
Law Reference: KRS § 383.580(1)
2. Security Deposit Returns & Allowable Deductions
Return deadline: Landlords must return the security deposit within 30 days after the tenant vacates the unit. If there are deductions, landlords must provide an itemized list of those deductions within the same 30-day period.
Permissible deductions: Landlords may deduct for unpaid rent, repairs for damages beyond normal wear and tear, and other costs associated with the tenant’s noncompliance with the lease agreement.
Itemized statement required: An itemized list of damages and deductions must be provided to the tenant within the 30-day period after vacating the unit.
Law Reference: KRS § 383.580(3)
3. Penalties for Mishandling Security Deposits
Forfeiture of deposit: If the landlord fails to return the deposit or provide an itemized list of deductions within 30 days, they forfeit the right to retain any portion of the deposit.
Tenant remedies: Tenants may sue for the full deposit amount, and if the landlord is found to have acted in bad faith, the tenant may be entitled to recover twice the amount wrongfully withheld, along with court costs and attorney fees.
Law Reference: KRS § 383.580(4)
Key Takeaways
Kentucky does not impose a cap on the amount landlords can charge for a security deposit.
Deposits must be returned within 30 days, along with an itemized list of any deductions.
Failure to return the deposit or provide an itemized statement within 30 days results in forfeiture of the deposit.
Landlords who fail to comply with these laws may be liable for double the amount of the deposit, plus attorney fees and court costs.
By following Kentucky’s security deposit rules, landlords can avoid penalties, and tenants can ensure their deposits are handled properly.
Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. Readers should not act or refrain from acting based on any information included in this post without seeking legal counsel or other professional guidance specific to their situation. The information is provided “as is” without any representations or warranties of any kind, express or implied, including but not limited to the accuracy, completeness, or reliability of the content. Laws and regulations may change and vary by jurisdiction.
