Kentucky Security Deposit Laws in 2025
FORWARDED EMAIL - URGENT
Subject: KY Deposit Law changed. You're probably breaking it.
Stop what you're doing. If you have a rental in Kentucky, the rules you knew are DEAD. New laws from 2024. I just saw a landlord get taken for double the deposit + legal fees because he used the old 45-day rule.
This is not a drill. Here’s your survival packet.
1. THE THREE NEW RULES THAT WILL BANKRUPT YOU
They didn't make this friendlier. They made it a LIABILITY TRAP.
- THE 30-DAY GUILLOTINE: You have 30 DAYS to return the money. Not 45. THIRTY. (KRS 383.580). Clock starts when they give you a forwarding address. Miss it? You can lose the right to make ANY deductions. Tenant can sue for the full deposit plus 2x damages. This is the main thing. Forget this, you're done.
- EVIDENCE OR GET OUT: You can't just write "$500 for repairs." For EVERY deduction you must give them: (1) Itemized list, (2) PHOTOS/VIDEO of damage, (3) The INVOICE from the contractor. No photo? No deduction. They wrote this to catch lazy landlords. DON'T BE LAZY.
- NON-REFUNDABLE FEES ARE ILLEGAL: That "non-refundable cleaning fee" in your lease? SCRAP IT. KRS 383.590 killed it. It's all refundable deposit now. If you charge it, you're probably giving it back.
2. WEAR & TEAR VS. DAMAGE: THE ONLY LIST YOU NEED
Get this wrong = you lose in court. Judges hate landlords who charge for normal life.
| YOU CAN'T CHARGE FOR THIS (Normal Life) | YOU CAN CHARGE FOR THIS (Their Mess) |
|---|---|
| Faded paint from sun. Worn carpet in hallway. | Purple walls they painted. Red wine stains in carpet. |
| Loose door handle. Small nail holes. | Hole in drywall from a doorknob. 50 nail holes in one wall. |
| Dusty mini-blinds. Slow drip from faucet. | Blinds bent in half. Faucet ripped off the wall. |
| Grout a little dirty. Floor scuffs. | Tiles cracked. Deep gouges in hardwood. |
THE TEST: Could a basic cleaning or a handyman's quick visit fix it? That's my cost as the owner. Does it need a specialist, replacement, or major repair? That's their damage.
3. YOUR MOVE-OUT PROTOCOL (DO NOT DEVIATE)
This is your only shield.
LANDLORDS:
- WALK-THROUGH WITH THEM. Be there. Use your move-in photos. Make a list. GET THEM TO SIGN IT.
- DAY 1: They hand over keys + forwarding address. THE CLOCK STARTS.
- DAY 25: Decision made. Checks cut. Evidence attached. MAIL IT CERTIFIED MAIL. Give yourself a 5-day USPS buffer. DAY 31 = YOU FAILED.
TENANTS:
- PHOTOGRAPH EVERYTHING. Move-in. Move-out. Time-stamp it. This is your bulletproof vest.
- GIVE YOUR FORWARDING ADDRESS IN WRITING. Text or email. Proof you gave it.
- DAY 31: No check? SEND A DEMAND LETTER. Certified mail.
- DAY 38: File in SMALL CLAIMS COURT. Ask for your deposit DOUBLE. The new law is on your side.
4. WHEN IT BLOWS UP (AND IT WILL)
- Tenant: Go to small claims. It's cheap. Bring your lease, your photos, your demand letter. The judge will ask the landlord for their evidence. If they have none, you win. Simple.
- Landlord: If you get sued and you don't have a signed move-in checklist, move-out report, photos, and invoices? SETTLE. You will lose. Your only hope is a paper trail so thick it puts the judge to sleep.
5. BOTTOM LINE
This isn't about being fair anymore. It's about being TECHNICALLY PERFECT. The law is designed to punish the sloppy. For landlords: Document obsessively. Return stupidly fast. For tenants: Know your 30 days. Enforce it.
Play the new game or pay the new price.
SOURCES (YOUR AMMO):
DISCLAIMER: This is a panic memo from someone who's been through it. It is not legal advice. I am not your lawyer. For real money and real property, pay a real Kentucky lawyer to look at your situation. This just tells you what to ask them about.
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