Kentucky security deposit rules.
The Kentucky rules for residential security deposits in plain English: how much can be charged, how fast it comes back, whether interest is owed, and what catches operators out.
Last reviewed · Statute: Ky. Rev. Stat. Ann. § 383.580 · Not legal advice
How much can be charged
No statutory limit on the deposit amount.
When it has to come back
No fixed return deadline. The landlord gives a final damage listing at move-out and sends notice of any refund due to the tenant’s last known address; if the tenant does not respond within 60 days the landlord may keep the deposit. A tenant who leaves owing rent and does not demand the deposit within 30 days lets the landlord apply it to the rent.
Interest
No interest is required.
Where the money has to sit
Deposits must be held in a separate account at a Kentucky-chartered or federally insured institution; the location of the account must be disclosed in writing.
What catches operators out
- The bank-disclosure requirement is unique. Failing to disclose the depository forfeits the right to retain deductions.
- KRS 383.580 (URLTA) applies only in cities and counties that have adopted the Act, such as Louisville and Lexington. Elsewhere there is no state deposit statute.
- Move-in and move-out inspection rules tie to deduction rights.
What this looks like with Standby in Kentucky.
When a resident takes a Standby certificate there is no cash deposit to hold, so the cap, the return deadline and the interest rules above have nothing to attach to. You are covered up to the full deposit and draw on it when you need to.
When a resident pays cash instead, Standby handles that deposit under your lease and Kentucky law, so your team is not tracking return deadlines by hand.
This page summarises the most common single-family and multifamily residential rule in Kentucky. Furnished units, senior leases, mobile-home tenancies and short-term rentals can differ, and city ordinances may override the state default. Check the statute before relying on a figure for a specific lease.