Kentucky sets no dollar cap on residential security deposits. Where the Uniform Residential Landlord and Tenant Act applies, landlords must hold deposits in a separate account, disclose its location, provide a move-in damage list, and give an itemized statement before deducting. These rules apply only in cities and counties that adopted URLTA.
Under KRS 383.580 there is no statutory maximum on a security deposit. The statute requires that "All landlords of residential property requiring security deposits prior to occupancy shall be required to deposit all tenants' security deposits in an account used only for that purpose," and the tenant must be told the account's location and number. Before move-in, the tenant must receive a written list of existing damage with repair estimates and may inspect to verify it. At move-out the landlord must give an itemized statement before keeping any portion for damages. Crucially, KRS 383.500-.715 (URLTA) governs only in jurisdictions that have adopted it, including Louisville/Jefferson County and Lexington/Fayette County; elsewhere common law applies.
A landlord who fails to maintain the separate account or to furnish the required move-in or move-out damage listing forfeits the right to retain any part of the deposit under KRS 383.580, and a non-complying landlord cannot use the courts to keep withheld funds.
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