Kentucky Security Deposit Laws: Limits, Return Deadlines, and Penalties
Complete guide to Kentucky security deposit laws under KRS 383.580, including holding requirements, move-in checklists, and return timelines.
Legal Disclaimer
This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.
Kentucky's security deposit rules are codified in KRS 383.580 as part of the Uniform Residential Landlord and Tenant Act (URLTA). These rules require landlords to hold deposits properly, provide move-in documentation, and return deposits within strict timelines — or face forfeiture penalties.
Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Always consult a licensed attorney in Kentucky for guidance specific to your situation. Information last verified: March 2026.
No Statutory Cap
Kentucky law places no limit on how much a landlord can charge for a security deposit. In practice, most landlords charge one to two months' rent.
Holding Requirements
Landlords must hold security deposits in a separate account at a federally insured financial institution located in Kentucky. Within 30 days of receiving the deposit, the landlord must provide the tenant with written notice of:
- The name of the financial institution.
- The address of the institution.
Move-in Checklist Requirement
When a security deposit is collected, the landlord must provide a move-in checklist documenting the condition of the premises. Both landlord and tenant should sign the checklist. This document becomes critical evidence when disputes arise over deductions at move-out.
Return Deadlines
| Scenario | Deadline |
|---|---|
| Tenant provides forwarding address | 30 days after tenant vacates |
| Tenant does not provide forwarding address | 60 days after tenant vacates |
The landlord must return the deposit with an itemized written statement of any deductions.
Permitted Deductions
Landlords may deduct for:
- Unpaid rent (including the final month if applicable).
- Damage beyond normal wear and tear — documented with photos and repair invoices.
- Costs of non-compliance with the lease agreement.
Deductions for normal wear and tear are not permitted.
Penalties for Non-Compliance
If the landlord fails to return the deposit or provide an itemized statement within the required timeframe:
- The landlord forfeits the right to retain any portion of the deposit.
- The tenant can sue for the full deposit amount.
- If the court finds the landlord acted in bad faith, the tenant may recover double the amount wrongfully withheld, plus court costs and attorney fees.
No Interest Required
Kentucky does not require landlords to pay interest on security deposits.
How Landager Helps
Landager tracks deposit holding accounts, move-in checklist completion, and return deadlines — automatically alerting you when the 30-day window begins and ensuring you maintain documentation for every deduction.
Sources & Official References
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