Security Deposit in Kentucky

State-specific overview · Property & Real Estate

Quick summary

Landlords must return deposits within 30–45 days and may deduct only for actual damages, not normal wear.

How Kentucky treats Security Deposit

Kentucky requires landlords to return security deposits within 30 to 45 days of move-out, with itemized deductions for actual damages beyond normal wear and tear. Landlords must pay interest on deposits held for more than two years. The law does not require separate escrow accounts, but deposits remain the tenant's property and cannot be used by the landlord for operating expenses.

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The general definition of Security Deposit

Money a tenant pays upfront to a landlord as a guarantee against damage or unpaid rent.

A security deposit is cash that a tenant gives to a landlord at the start of a lease, held as insurance against property damage or unpaid rent. The landlord must keep this money in a separate account and return it to the tenant when the lease ends, minus any deductions for legitimate damages or unpaid bills. Most states have strict rules about how quickly landlords must return deposits (often 30–45 days) and require them to itemize any deductions. If a landlord wrongfully keeps the deposit, the tenant can sue for the full amount plus penalties.

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This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in Kentucky.