Overview
Kentucky follows the Uniform Residential Landlord and Tenant Act (URLTA), which provides a framework for security deposit handling without imposing a maximum limit on the deposit amount. While landlords have flexibility in setting deposit amounts, they must follow strict rules regarding how deposits are held and returned.
This guide covers everything landlords and tenants need to know about security deposits in Kentucky.
Deposit Limits
Kentucky does not impose a statutory limit on the amount a landlord may charge as a security deposit. Landlords are free to set the deposit at any amount they deem appropriate. However, market conditions and competition generally keep deposits within a reasonable range.
Practical Considerations
While there is no legal cap, most Kentucky landlords typically charge:
- 1 to 2 months' rent for unfurnished units
- 2 to 3 months' rent for furnished units
Landlords must hold security deposits in a separate account at a federally insured financial institution and must disclose the account location to the tenant.
cite: Ky. Rev. Stat. § 383.580
Allowable Deductions
Landlords may deduct from the security deposit for the following reasons:
- Unpaid rent: Any rent owed at the time of move-out
- Damage beyond normal wear and tear: Repairs for tenant-caused damage that exceeds ordinary wear
- Cleaning: Costs to restore the unit to the same level of cleanliness as at move-in
- Lease violations: Costs arising from breaches of the lease agreement
What Constitutes Normal Wear and Tear?
Normal wear and tear includes:
- Minor scuffs on walls
- Small nail holes from hanging pictures
- Worn carpet from regular use
- Faded paint due to sunlight
Damage beyond normal wear and tear includes:
- Large holes in walls
- Stained or burned carpet
- Broken windows or fixtures
- Pet damage not covered by a pet deposit
Return Timeline
Landlords must follow a two-tiered return timeline:
- 30 days: The landlord must return the full deposit within 30 days if no deductions are being claimed
- 60 days: If there is damage, the landlord has up to 60 days to return the deposit, but must provide an itemized list of damages and charges within 30 days
The itemized statement must include a description of each deduction and the corresponding amount. Any remaining deposit must accompany the statement.
If the landlord fails to comply with these timelines, the tenant may be entitled to recover the full deposit amount plus damages.
cite: Ky. Rev. Stat. § 383.580
Pre-Move-Out Inspection
Kentucky law does not require landlords to offer a pre-move-out inspection. However, it is considered good practice for both parties to conduct a walk-through inspection at move-out to document the condition of the unit and avoid disputes over deductions.
Tenants are encouraged to:
- Document the condition of the unit with photos at move-in and move-out
- Request a walk-through with the landlord before turning over the keys
- Keep copies of all communication regarding the deposit
Dispute Resolution
If a tenant believes their deposit was wrongfully withheld, they can:
- Send a demand letter to the landlord requesting the return of the deposit with an itemized explanation
- File a claim in Small Claims Court (up to $2,500 in Kentucky)
- Consult with a local legal aid organization for assistance with the claim
If the landlord willfully fails to return the deposit or provide the required itemized statement, the court may award the tenant the full deposit amount plus reasonable attorney's fees.