Kentucky Real Estate Law & Regulations

Chapter 1

Kentucky Real Estate Law & Regulations

Course: Kentucky Real Estate Exams Prep
Subject: Kentucky State Sales Associate Exam Prep
Chapter: Kentucky Uniform Residential Landlord & Tenant Act (KRS Chapter 383)

Detailed Framework: The URLTA provides the legal "rules of the road" for most residential leases in Kentucky (some counties may have local ordinances). It creates standardized rights and responsibilities to balance the interests of both parties. While commercial leases are generally governed by the specific lease contract, residential leases are heavily regulated by this Act.

Security Deposits:

• Purpose & Limits: The deposit is a security against unpaid rent, damages beyond normal wear and tear, and other breaches of the lease. Kentucky has no statutory dollar cap, but courts have ruled the amount must be "reasonable" (e.g., not exceeding two months' rent for a standard rental). A non-refundable "cleaning fee" or "pet fee" is generally permissible if clearly stated in the lease as such.
• Return Process: The landlord has 30 days from the date the tenant surrenders possession (returns keys and vacates) to either return the full deposit or provide a written, itemized statement of deductions along with the remainder. Deductions must be for specific, justifiable damages (e.g., "$350 to replace carpet stained by pet urine," "$80 for unreturned garage door opener") and cannot be for ordinary wear and tear (e.g., faded paint, gently worn carpet).
• Case Study Example: A tenant in Louisville moves out on June 1. On June 30, they receive a check for $400 of their$1,000 deposit, with a statement listing: "$200 for repainting walls (holes from picture hooks)," "$400 for professional cleaning of oven and refrigerator." The tenant could dispute the painting charge as normal wear and tear and the cleaning charge if they left the unit in a clean condition, potentially taking the landlord to small claims court.