Kentucky security deposit rules
Kentucky sets no statutory limit on the size of a security deposit. The deposit must be returned no fixed statutory return deadline. Landlord must inspect and give an itemized damage list at move-out; if a refund is due the landlord must notify the tenant at the last known address, and if the tenant does not respond within 60 days the landlord may keep the deposit. If the tenant leaves owing rent and makes no demand, the landlord may apply the deposit after 30 days.. No interest is owed on the deposit under state law.
What the law requires
No statutory limit. Returned No fixed statutory return deadline. Landlord must inspect and give an itemized damage list at move-out; if a refund is due the landlord must notify the tenant at the last known address, and if the tenant does not respond within 60 days the landlord may keep the deposit. If the tenant leaves owing rent and makes no demand, the landlord may apply the deposit after 30 days.. Applies only in localities that have adopted URLTA (KRS 383.500; e.g., Louisville/Jefferson, Lexington/Fayette, ~32 cities and 5 counties). Deposit must be held in a separate account at a regulated bank and tenant told the bank and account number; move-in and move-out itemized damage lists required. No interest requirement. Text read on FindLaw mirror (current as of 2025-01-01); official page is https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35733 (could not be fetched). Statewide-URLTA bills (2024 HB 76, 2026 HB 202) were introduced; enactment status UNVERIFIED in this pass.
- Deductions: unpaid rent and damage beyond normal wear and tear, itemised in writing. Cleaning and repainting after ordinary use are normal wear in most states.
- Deadline: the clock usually starts when the tenant moves out and, in many states, when a forwarding address is provided. Missing it typically forfeits the landlord’s right to keep any of the deposit and can add statutory damages.
- Interest: none required under state law. Cities in some no-interest states have their own ordinances, so check the municipal code where you rent.
Move-out checklist
- Give written notice of the move-out date and a forwarding address; many deadlines only start when the landlord has the address.
- Photograph every room after cleaning, with a timestamp. Request a joint inspection where the state allows one.
- If the deadline passes, send a written demand citing KRS 383.580. Small-claims court handles deposit disputes in every state and most cap the claim well above a typical deposit.
Related Kentucky rules
- Late fees: No statutory cap or grace period. KRS 383.565 (terms of rental agreement) says nothing about late fees; some secondary sites claim a 10%/5-day rule under 383.565, which is not in the statute text. Fees are governed by the lease and general reasonableness. Late fee calculator.
- Notice to end a tenancy: 30 days' written notice before the periodic rental date for month-to-month; 7 days for week-to-week; 10 days for a tenancy that began after a written lease expired (KRS 383.695, URLTA localities). Outside URLTA localities KRS 383.195 (one month's notice for tenancy at will) governs - UNVERIFIED in this pass. Notice calculator.
- All rules on one page: Kentucky landlord and tenant law.
Frequently asked questions
How much can a landlord charge for a security deposit in Kentucky?
There is no statutory cap in Kentucky; the market and the lease decide. Applies only in localities that have adopted URLTA (KRS 383.500; e.g., Louisville/Jefferson, Lexington/Fayette, ~32 cities and 5 counties). Deposit must be held in a separate account at a regulated bank and tenant told the bank and account number; move-in and move-out itemized damage lists required. No interest requirement. Text read on FindLaw mirror (current as of 2025-01-01); official page is https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35733 (could not be fetched). Statewide-URLTA bills (2024 HB 76, 2026 HB 202) were introduced; enactment status UNVERIFIED in this pass.
How long does a landlord have to return a security deposit in Kentucky?
No fixed statutory return deadline. Landlord must inspect and give an itemized damage list at move-out; if a refund is due the landlord must notify the tenant at the last known address, and if the tenant does not respond within 60 days the landlord may keep the deposit. If the tenant leaves owing rent and makes no demand, the landlord may apply the deposit after 30 days.. The statute is KRS 383.580.
Does a Kentucky landlord have to pay interest on the security deposit?
No. Kentucky law does not require interest on residential security deposits.