Kentucky Security Deposit Law: Limits, Deadlines, and Penalties
What Kentucky landlords can charge, when deposits must be returned, and what it costs to get it wrong. Last reviewed 2026-08-12.
How much can a landlord charge in Kentucky?
Kentucky sets no cap on security deposits anywhere in the state. The deposit statute, KRS § 383.580, regulates how deposits are held and returned but not how much can be charged.
No statute addresses pet deposits — they are uncapped and governed by the lease, though where URLTA applies they must be held in the same separate deposit account.
When must the deposit be returned?
KRS § 383.580 sets no flat 'return within X days' rule. After move-out the landlord inspects and prepares a final damage listing; if a refund is due, the landlord must notify the tenant's last known address, and only after 60 days without a response may the landlord keep the unclaimed money. If the tenant left owing rent and never demanded the deposit, the landlord may apply it to the debt after 30 days.
The landlord must give a comprehensive listing of existing damage (with estimated repair costs) before taking the deposit, and a final damage listing at move-out; both are signed by landlord and tenant, and a tenant who disagrees must dissent in writing item by item.
What happens if a landlord misses the deadline?
A landlord who did not hold the deposit in the required separate, disclosed account, or who failed to provide the initial and final damage listings, is not entitled to retain any portion of the deposit. Kentucky's statute imposes no damages multiplier or attorney-fee award.
Interest and holding requirements
Kentucky does not require landlords to pay interest on security deposits.
Where the URLTA applies, deposits must be kept in an account used only for deposits at a bank or lending institution regulated by Kentucky or the federal government, and the tenant must be told the institution's location and the account number.
What Kentucky landlords get wrong
Kentucky's URLTA is local-option: KRS 383.505 to 383.715 applies only in jurisdictions that adopted it — including Louisville/Jefferson County, Lexington-Fayette, Covington, Bellevue, and a handful of other cities. Outside those areas there are no statutory deposit rules at all and the lease alone controls. Where URLTA applies, the paperwork is the whole game: separate disclosed account, signed move-in damage listing, and signed move-out listing — skip any of them and you forfeit the right to withhold. Tenants who refuse to sign the final listing without itemized written dissent lose the right to sue over it.
The law itself
Frequently asked questions
How long does a Kentucky landlord have to return a security deposit?
Kentucky has no fixed statutory deadline. In URLTA jurisdictions like Louisville and Lexington, the landlord inspects at move-out, provides a signed itemized damage listing, and — if you're owed a refund — sends notice to your last known address. The money must remain available to you for 60 days after that notice. In practice, expect the refund within 30 to 60 days; outside URLTA areas your lease terms govern.
Does my Kentucky landlord have to keep my deposit in a separate account?
Yes, in URLTA jurisdictions. The deposit must be held in an account used only for security deposits at a bank or lending institution regulated by Kentucky or a federal agency, and you must be informed of the account's location and account number. A landlord who fails to do this — or who skips the required move-in and move-out damage listings — loses the right to keep any portion of your deposit.
Do Kentucky's security deposit laws apply everywhere in the state?
No. KRS 383.580 is part of Kentucky's Uniform Residential Landlord and Tenant Act, which applies only in cities and counties that adopted it — including Louisville/Jefferson County, Lexington-Fayette, Covington, and several northern Kentucky cities. Outside those jurisdictions, no statute regulates deposits at all: no account rules, no itemization requirement, no deadline. There, everything depends on what your lease says, so read it before signing.
What should I do at move-out to protect my deposit in Kentucky?
Attend the final inspection and review the landlord's damage listing carefully before signing. Your signature is conclusive evidence the list is accurate, and if you disagree with any item you must refuse to sign and instead write out a specific, signed dissent for each disputed charge. Tenants who neither sign nor dissent in writing cannot recover damages in court. Then give the landlord your forwarding address and respond to any refund notice within 60 days.
Keep reading
Deposit deadlines are easy to miss — until they cost you triple.
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Start Free TrialThis page is general information, not legal advice. Statutes change — verify against the official text linked above or consult a local attorney before acting.