Kentucky Residential Lease Agreement

Introduction

This comprehensive guide covers Kentucky residential lease agreement requirements under the Kentucky Uniform Residential Landlord and Tenant Act (URLTA), codified in Kentucky Revised Statutes (KRS) Chapter 383. ^[1] This guide provides detailed information about landlord and tenant rights, obligations, and legal requirements in Kentucky.

Kentucky landlord-tenant law establishes clear rules for security deposits, required disclosures, notice requirements, lease termination procedures, and both parties' rights and remedies. Understanding these requirements is essential for creating legally compliant lease agreements.

I. Required Disclosures

Kentucky law requires landlords to make several mandatory disclosures before entering into a residential lease agreement. Failure to provide these disclosures may result in legal consequences.

A. Names and Addresses Disclosure

Before a lease begins, the landlord must disclose the name and address of the property owner, the landlord, and anyone authorized to manage the property or receive notice on the owner's behalf. ^[2] This ensures tenants know who owns and manages the property and where to send legal notices or communications.

B. Lead-Based Paint Disclosure (pre-1978 Properties)

For residential properties built before 1978, federal law requires landlords to provide lead-based paint disclosures. ^[3] Before signing a lease, landlords must:

• Provide the EPA-approved pamphlet "Protect Your Family From Lead In Your Home"***
• Disclose the presence of any known lead-based paint and/or lead-based paint hazards***
• Provide any available records and reports on lead-based paint hazards***
• Include a Lead Warning Statement in the lease agreement confirming compliance***

This federal requirement applies nationwide under the Residential Lead-Based Paint Hazard Reduction Act of 1992 (Title X) and is enforced by the EPA and HUD. ^[4]

C. Security Deposit Disclosures

When accepting a security deposit, Kentucky law requires landlords to make two critical disclosures. ^[5] First, landlords must disclose the location of the separate bank account where the security deposit is held and provide the account number to the tenant. Second, landlords must provide a comprehensive listing of any existing damage to the rental unit that could be charged against the security deposit, along with estimated repair costs, before the tenant pays the deposit.

Ii. Security Deposits

Kentucky has comprehensive security deposit regulations under KRS 383.580. ^[5] These requirements protect both landlords and tenants by establishing clear rules for deposit handling, deductions, and returns.

A. Maximum Security Deposit Amount

Kentucky law does not impose a statutory maximum on security deposit amounts. ^[6] Landlords may charge any amount agreed upon with the tenant, though the amount should be reasonable and proportional to the property value and monthly rent.

B. Separate Account Requirement

All landlords of residential property must deposit tenants' security deposits in a separate account used only for that purpose, held in any bank or lending institution subject to regulation by Kentucky or any federal agency. ^[5] This account must be separate from the landlord's personal or business funds. If a landlord fails to maintain this separate account, the landlord is not allowed to keep any portion of the security deposit.

C. Interest on Security Deposits

Kentucky law does not require landlords to collect or pay interest on security deposits held for tenants. ^[7] Unless otherwise agreed in the lease, landlords may keep any interest earned on security deposit accounts.

D. Move-In Inspection Checklist

Before accepting a security deposit, landlords are required to provide tenants with a comprehensive listing of any existing damage to the rental unit which could be the basis of a charge against the deposit, including estimated repair costs. ^[5] This move-in inspection checklist protects both parties by documenting the property's condition at the start of the tenancy.

E. Return Timeline and Procedures

When a tenant moves out owing no rent and having a refund due, the landlord must send notification to the tenant's last known or reasonably determinable address stating the amount of any refund due. ^[5] If the landlord does not receive a response from the tenant within 60 days from sending such notification, the landlord may remove the deposit from the account and retain it free from any claim of the tenant. ^[8] This 60-day response period protects landlords from indefinitely holding unclaimed deposits.

F. Itemized Deductions

If the landlord makes deductions from the security deposit, they must leave the withheld portion in the separate holding account for 60 days and send written notice to the tenant's last known or reasonably determined address. ^[5] The landlord must provide a comprehensive list of any damages to the unit and the estimated cost of repairs as the basis for deductions made on the security deposit. ^[9]

G. Forwarding Address Requirement

Tenants should provide a forwarding address to ensure they receive security deposit returns or itemized deduction notices. ^[10] If the tenant does not provide a forwarding address within the required timeframe and the landlord cannot reasonably determine the address, the landlord may keep the funds after the 60-day period expires.

Iii. Rent Payment Terms

Kentucky law provides landlords with flexibility in setting rent payment terms, grace periods, and late fees. These terms should be clearly specified in the lease agreement.

A. Grace Period for Rent Payment

Kentucky does not require a legally mandated grace period for late rent payments. ^[11] Landlords can consider rent late the day after the due date unless otherwise specified in the lease agreement. However, landlords and tenants can agree in the lease that there will be a grace period before late fees apply.

B. Late Fees

Kentucky law does not cap late fees, but landlords must ensure they are reasonable and not punitive. ^[12] The suggested amount is normally around 5-10% of monthly rent. Excessive late fees may be challenged as unenforceable penalty clauses. Landlords should clearly specify late fee amounts and when they apply in the lease agreement.

C. NSF (non-Sufficient Funds) Fees

Kentucky law limits the maximum fee for returned checks (NSF fees) to $50. ^[13] This statutory cap under KRS § 514.040 prevents landlords from charging excessive fees when a tenant's rent check bounces due to insufficient funds.

Iv. Landlord's Right to Enter

Kentucky law balances landlords' need to access rental property with tenants' right to privacy and peaceful enjoyment. KRS 383.615 establishes specific requirements for landlord entry. ^[14]

A. Notice Requirement

Except in cases of emergency or when impracticable, landlords must give tenants at least two (2) days' notice before entering the rental unit. ^[14] The landlord may only enter at reasonable times, typically during normal business hours unless otherwise agreed.

B. Permitted Reasons for Entry

Tenants cannot unreasonably withhold consent for landlords to enter the dwelling unit for legitimate purposes. ^[14] Permitted reasons include:

• Inspecting the premises***
• Making necessary or agreed repairs, decorations, alterations, or improvements***
• Supplying necessary or agreed services***
• Exhibiting the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workmen, or contractors***

C. Emergency Access

Landlords may enter the dwelling unit without consent and without notice in case of emergency. ^[14] Emergency situations include fire, water leaks, gas leaks, or other conditions that pose immediate danger to the property or occupants.

D. Protection Against Abuse

Landlords shall not abuse the right of access or use it to harass tenants. ^[14] Repeated unnecessary entries or entries at unreasonable times may constitute harassment.

E. Extended Absence Notification

If the lease requires tenants to notify landlords of anticipated extended absences exceeding seven days, and the tenant willfully fails to do so, the landlord may recover actual damages from the tenant. ^[15] During such absences, landlords may enter the property at times reasonably necessary to perform inspections and address maintenance issues.

V. Lease Termination

Kentucky law establishes specific notice requirements and procedures for terminating rental agreements, depending on the type of tenancy and reason for termination.

A. Periodic Tenancy Termination

For periodic tenancies without a fixed end date, Kentucky law requires advance notice to terminate. ^[16] A landlord or tenant may terminate a week-to-week periodic tenancy by giving at least five (5) days' notice. For month-to-month periodic tenancies, at least one (1) month's notice is required. ^[17]

B. Termination for Nonpayment of Rent

If a tenant fails to pay rent when due, the landlord may terminate the rental agreement by providing written notice. ^[18] The notice must state the amount of rent owed and inform the tenant that they have seven (7) days to pay the rent or vacate the premises. If the tenant pays the full amount owed within the seven-day period, the rental agreement continues. If not, the landlord may proceed with eviction.

C. Termination for Lease Violations

If a tenant violates the lease agreement (other than nonpayment of rent), the landlord may provide written notice specifying the violation. ^[18] The tenant has fifteen (15) days to correct the violation or vacate the rental unit. If the tenant remedies the breach within this period, the rental agreement continues. If not, the landlord may terminate the agreement and pursue eviction.

D. Abandonment

If the landlord determines that the tenant has abandoned the property, the landlord may access the property for inspection and maintenance purposes and seek to recover possession through the eviction process. ^[15] Abandonment is generally presumed when the tenant is absent for an extended period, has not paid rent, and has removed personal belongings, though specific circumstances vary.

Vi. Breaking a Lease (early Termination)

Kentucky law provides tenants with several legal justifications for breaking a lease early without penalty. These protections ensure tenants can leave unsafe or untenable situations.

A. Active Military Duty

Federal law allows tenants to break a lease early when called to active military service. ^[19] This protection applies to members of the Armed Forces, National Guard, and Reserve serving more than 30 days, as well as officers in the Public Health Service or NOAA with qualifying deployment or permanent change of station orders.

To terminate the lease, tenants must provide written notice and a copy of their military orders to the landlord. ^[19] Termination takes effect at least 30 days after the next rent period begins. This protection is provided under the Servicemembers Civil Relief Act, 50 U.S.C. §§ 3901–4043. ^[20]

B. Domestic Violence, Sexual Assault, or Stalking

Kentucky law allows tenants who experience domestic violence, sexual assault, or stalking to end a lease early without penalty. ^[21] Tenants must submit a valid domestic violence order, interpersonal protective order, or criminal complaint showing that the tenant or an immediate family member is protected.

Tenants must provide the landlord with thirty (30) days' written notice and include the necessary documentation. ^[21] After the notice period, the lease ends and tenants are responsible for rent only through the termination date. This protection is provided under Ky. Rev. Stat. § 383.300 ^[22] and applies to leases entered into or renewed after June 29, 2017. ^[21]

C. Uninhabitable Living Conditions

If a landlord fails to maintain the rental unit in a habitable condition or provide essential services, tenants may have grounds to terminate the lease early. ^[23] Specific procedures and notice requirements apply, and tenants should document violations and follow proper legal steps before vacating.

D. Non-Waivable Rights

The rights to break a lease for military deployment and domestic violence situations are non-waivable. ^[24] Neither tenants nor landlords can waive these protections, and any lease clause attempting to do so is unenforceable.

Vii. Additional Legal Considerations

A. Uniform Residential Landlord and Tenant Act (Urlta)

The foundation of Kentucky landlord-tenant law is the Uniform Residential Landlord and Tenant Act (URLTA), codified in Kentucky Revised Statutes (KRS) Chapter 383. ^[1] This comprehensive statute governs most aspects of residential tenancies in Kentucky and provides remedies for both landlords and tenants.

B. Landlord Responsibilities

Kentucky law imposes various maintenance and disclosure obligations on landlords. ^[25] Landlords must comply with building and housing codes, maintain structural components, provide essential services, and make repairs necessary to keep the unit habitable.

C. Tenant Responsibilities

Tenants have obligations to maintain the rental unit in reasonable condition, dispose of waste properly, use fixtures and appliances reasonably, and not damage the property. ^[26] Failure to meet these obligations may result in lease termination or liability for damages.