Kentucky Security Deposit Law

Author: Kasee Godwin
Date: 11.02.2023

Kentucky Security Deposit Law: An In-depth Analysis

Navigating rental agreements can be daunting, but understanding the Kentucky security deposit law is crucial for landlords and tenants. In this guide, we delve deep into the intricacies of this law, providing a comprehensive overview of the rights and responsibilities of each party.

The Basics of Kentucky Security Deposit Law

  • Maximum Security Deposit Amount: Unlike some states, Kentucky does not have a limit on how much a landlord can charge for a security deposit. It’s often left to the discretion of the landlord and tenant to agree, provided it is reasonable and not excessive.
  • Returning the Security Deposit: As per KRS 383.580, landlords have 60 days from the date of termination of the lease or the surrender and acceptance of the premises, whichever occurs last, to return the deposit. If any portion of the deposit is retained, the landlord must provide the tenant with an itemized list of deductions due to unpaid rent or damages.

Deductions from Security Deposit

A landlord can only make deductions from the security deposit for:

  • Unpaid Rent: If a tenant has outstanding rent dues, it’s permissible for landlords to deduct the necessary amount.
  • Damages: Any damages beyond normal wear and tear can be deducted. This excludes everyday wear or minor issues that are a result of regular living.

What if a Landlord Does Not Return the Deposit?

If a landlord unjustly withholds a deposit or fails to provide an itemized list of deductions, the tenant can sue for recovery. If a court finds in favor of the tenant, they may be entitled to twice the amount of the deposit unjustly withheld, in addition to any actual damages. Tenants must be proactive and understand their rights under Kentucky security deposit law.

Transfer of Property and Security Deposits

The new owner is responsible for the security deposits if a rental property changes hands. The former owner should transfer all deposits to the new owner and notify the tenants in writing of this change.

Best Practices for Landlords:

  • Documentation: Always document the property’s condition before a tenant moves in. This helps in resolving any potential disputes related to damages.
  • Open Communication: Maintain transparent communication with tenants about potential deductions and provide valid reasons if any portion of the deposit is retained.

Best Practices for Tenants:

  • Inspect Before Moving In: Before settling in, thoroughly inspect the property and note any existing damages. Share this list with the landlord.
  • Maintain the Property: To ensure a total return of your deposit, take care of the property and address any damages immediately.


Understanding the Kentucky security deposit law is paramount for a harmonious landlord-tenant relationship. It’s not just about safeguarding financial interests but ensuring that rights are respected and responsibilities upheld. Always stay informed and seek legal advice if you need clarification on any aspect of the security deposit process in Kentucky.


This article provides general information about the Kentucky security deposit law and should be considered something other than legal advice. Consult with a local attorney for any specific legal concerns.


Kasee Godwin

Position: Director of Marketing
Social Networks

Kasee is the Director of Marketing for Qira. She has nearly 15 years of experience in the real estate marketing industry, including 10 years on the client side. In her spare time, she enjoys reading science fiction, exploring new wineries, and fostering Golden Retrievers.

Other news


Centralization in Multifamily Property Management

As each day becomes more tech-enabled, property management firms naturally evolve to seek efficiencies and capitalize on economies of scale. The movement towards centralizing leasing, operations, and maintenance functions is strategic. 

Author: Kasee Godwin
Date: 05.15.2024

Exploring the Nuances of Ancillary Income

Ancillary income, a fundamental principle in the multifamily sector, encompasses the various revenue streams that property owners and managers can tap into beyond the primary rent collection.

Author: Kasee Godwin
Date: 04.10.2024

Security Deposit Alternatives: A Win-Win for Property Managers

The advent of security deposit alternatives is reshaping this landscape, offering a win-win solution for property managers and renters.

Author: Kasee Godwin
Date: 02.22.2024

The Rental Economy: Understanding the Shift in 2024

Evolving financial trends are defining this shift, challenging traditional investment strategies and demanding a more nuanced approach from industry professionals. The rise of Generation Z renters and a general change in renter demographics are reshaping rental market dynamics. 

Author: Kasee Godwin
Date: 01.25.2024

The Rise of Gen Z Renters

As Generation Z (born between 1997 and 2012 and aged 12-27) increasingly enters the rental market, their preferences and behaviors are beginning to reshape the multifamily industry.

Author: Kasee Godwin
Date: 01.18.2024

Artificial Intelligence and Machine Learning in Multifamily Real Estate 

Integrating Artificial Intelligence (AI) and Machine Learning (ML) in the multifamily real estate sector is transforming the industry's landscape. These advanced technologies are reshaping the dynamics for property managers, investors, and renters. 

Author: Kasee Godwin
Date: 01.16.2024

The Future of Multifamily Housing: Trends to Watch in 2024

As we move into 2024, the multifamily housing sector continues to evolve, shaped by emerging trends that reflect broader social, economic, and technological shifts. 

Author: Kasee Godwin
Date: 01.09.2024
Wyoming Security Deposit Law

Wyoming Security Deposit Law

The state of Wyoming does not limit application fees or security deposit amounts that property owners can collect, and even enables property owners in the state to collect an additional security deposit for utility fees.

Author: Kasee Godwin
Date: 12.15.2023

We are a financial services platform for property management

We are a financial services platform for property managers and residents. We help property managers and owners improve cash flow, reduce vacancies and avoid bad debt.