How to Hold and Return a Security Deposit in Kentucky

Managing a Security Deposit in Kentucky

Kentucky state law does not impose a limit on the amount you can charge for a security deposit. Most people charge an amount equivalent to one months' rent.

Storing the Deposit

You must store the deposit in a bank account. The deposit can’t be in the same account as any of your personal money and you can’t use the money as if it’s your own. You must let your subtenant know what bank the security deposit is held in and the account number where it is being held. If you do not follow these instructions, you forfeit your right to retain any or all of the security deposit.

Returning the Deposit

There is no law in Kentucky stating when you must return the security deposit by. However, if the sublease term ends and the subtenant is owed some or all of the security deposit, you must let them know by sending the information to their last known address. If they do not respond within 60 days, you may keep the security deposit. You may use the security deposit to pay for damages to the apartment or any unpaid rent.