Kentucky security deposit laws: a separate account and two signed damage lists
KRS 383.580 is built on paperwork. A Kentucky landlord who requires a deposit before occupancy must keep it in a separate account, give the tenant a signed list of existing damage before the deposit is taken, and compile a signed list at move-out. Without the account and both lists, the landlord cannot keep any part of the deposit.
Where must a Kentucky landlord keep the deposit?
All landlords of residential property requiring security deposits prior to occupancy must deposit all tenants' security deposits in an account used only for that purpose, in a bank or other lending institution subject to regulation by the Commonwealth of Kentucky or any agency of the United States government. Prospective tenants must be informed of the location of the separate account and the account number.
What happens at move-in?
Before the tenant tenders any consideration deemed to be a security deposit, the tenant is given a comprehensive listing of any existing damage that would be the basis for a charge against the deposit and the estimated dollar cost of repairing it. The tenant may inspect the premises to check the listing before taking occupancy. Landlord and tenant sign the listing, and the signatures are conclusive evidence of its accuracy, though not of latent defects. A tenant who refuses to sign must state in writing which items are disputed and sign that statement.
What happens at move-out?
At the end of occupancy the landlord inspects the premises and compiles a comprehensive listing of any damage that is the basis for a charge against the deposit, with the estimated cost of repair. The tenant may inspect to check the listing. Both sign, and the signatures are conclusive evidence of accuracy. A tenant who refuses must specify the disputed items in writing and sign the statement.
Example a made-up landlord in Louisville lists a $150 carpet burn at move-out. The tenant signs but writes that the burn was on the move-in list. The signed move-in listing settles the question, and the landlord removes the charge.
What if the account or the lists are missing?
No landlord may retain any portion of a security deposit if it was not held in a separate account as required and the initial and final damage listings were not provided. A tenant who disputes the final list may sue in District Court, but only over the items the tenant specifically dissented from in writing; a tenant who neither signs nor dissents specifically is not entitled to damages under the section.
What about unpaid rent and unclaimed refunds?
If a tenant leaves without paying the last month's rent and does not demand the deposit back, the landlord may after 30 days remove the deposit from the account and apply it to the debt. If the tenant leaves owing no rent and a refund is due, the landlord sends notice of the amount to the last known or reasonably determinable address; if no response comes within 60 days, the landlord may remove the deposit from the account and retain it free from any claim of the tenant. The section I read does not state a refund deadline in days or a penalty.
How DoorKeeping fits in Kentucky
DoorKeeping records each Kentucky deposit against the lease, counts down to the return deadline and drafts the itemized statement for you to approve. Move-in and move-out condition reports are signed in the app and kept with the lease, which are the two lists this statute relies on. This is general information, not legal advice. Check the current statute and your lease before you act.
Sources
Questions
- Does a Kentucky landlord have to keep deposits in a separate account?
- Yes. All landlords requiring deposits before occupancy must hold them in an account used only for that purpose, and tell prospective tenants where it is and the account number.
- Can a Kentucky landlord keep a deposit without damage lists?
- No. Without the separate account and both the initial and final damage listings, the landlord cannot retain any portion of the deposit.
- What if a Kentucky tenant does not claim a refund?
- If no response comes within 60 days of the landlord's notice of the refund amount, the landlord may retain the deposit free from any claim.