Security Deposit Return Deadlines & Deductions in Kentucky

At a glance

Requirements one by one

Where the act applies

KRS 383.500 authorizes cities, counties, and urban-county governments to adopt the Uniform Residential Landlord and Tenant Act in its entirety. The deposit duties in KRS 383.580 depend on that local adoption; check the applicable local ordinance before relying on them.

Deposit account and damage listings

Section 383.580(1) requires an account used only for tenants’ deposits at a regulated bank or lending institution, with its location and number disclosed to prospective tenants. Subsections (2) and (3) require damage listings with estimated repair costs before the deposit is tendered and at move-out. Both sides sign; a tenant who disagrees must identify the disputed items in a signed writing.

Refund process and remedy

Under § 383.580(7), a landlord must notify a tenant who leaves owing no rent of any refund due at the tenant’s last known or reasonably determinable address. If the tenant does not respond within 60 days after that notice, the landlord may retain the unclaimed amount. Subsection (6) separately permits applying a deposit to unpaid last month’s rent after 30 days when the tenant made no return demand.

Section 383.580(4) forfeits the landlord’s right to keep any deposit only if both the separate account was omitted and the initial and final damage listings were not provided. A tenant disputing the final listing may sue in District Court, but subsection (5) limits the claim to items specifically disputed in writing, subject to its stated exception.

What trips people up

Refusing to sign the move-out list is not enough to preserve a claim under § 383.580(5). The tenant must identify the disputed items in writing and sign that statement.

Common questions

Can one account hold several tenants’ deposits? Section 383.580(1) says the account is used only for tenants’ security deposits, so it can hold more than one tenant’s deposit if kept for that purpose.

Does signing the move-in damage list settle a hidden defect? No. Section 383.580(2) makes signatures conclusive as to the list’s accuracy but expressly excepts latent defects.

Statutes and sources

• KRS 383.500: “The General Assembly hereby authorizes cities, counties and urban-county governments to enact the provisions of the Uniform Residential Landlord and Tenant Act as set forth in KRS 383.505 to 383.705. If adopted, these provisions shall be adopted in their entirety and without amendment. No other ordinance shall be enacted by a city, county or urban-county government which relates to the subjects embraced in KRS 383.505 to 383.705.” — https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35717 (accessed 2026-10-07)
• KRS 383.580(1): “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, in any bank or other lending institution subject to regulation by the Commonwealth of Kentucky or any agency of the United States government. Prospective tenants shall be informed of the location of the separate account and the account number.” — https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35733 (accessed 2026-10-07)
• KRS 383.580(2): “Prior to tendering any consideration deemed to be a security deposit, the prospective tenant shall be presented with a comprehensive listing of any then-existing damage to the unit which would be the basis for a charge against the security deposit and the estimated dollar cost of repairing such damage. The tenant shall have the right to inspect the premises to ascertain the accuracy of such listing prior to taking occupancy. The landlord and the tenant shall sign the listing, which signatures shall be conclusive evidence of the accuracy of such listing, but shall not be construed to be conclusive to latent defects. If the tenant shall refuse to sign such listing, he shall state specifically in writing the items on the list to which he dissents, and shall sign such statement of dissent.” — https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35733 (accessed 2026-10-07)
• KRS 383.580(3): “At the termination of occupancy, the landlord shall inspect the premises and compile a comprehensive listing of any damage to the unit which is the basis for any charge against the security deposit and the estimated dollar cost of repairing such damage. The tenant shall then have the right to inspect the premises to ascertain the accuracy of such listing. The landlord and the tenant shall sign the listing, which signatures shall be conclusive evidence of the accuracy of such listing. If the tenant shall refuse to sign such listing, he shall state specifically in writing the items on the list to which he dissents, and shall sign such statement of dissent.” — https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35733 (accessed 2026-10-07)
• KRS 383.580(4): “No landlord shall be entitled to retain any portion of a security deposit if the security deposit was not deposited in a separate account as required by subsection (1) of this section and if the initial and final damage listings required by subsections (2) and (3) of this section are not provided.” — https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35733 (accessed 2026-10-07)
• KRS 383.580(5): “A tenant who disputes the accuracy of the final damage listing given pursuant to subsection (3) of this section may bring an action in District Court. Tenant's claim shall be limited to those items from which the tenant specifically dissented in accordance with the provisions of subsection (3) of this section, or except as otherwise provided, and if the tenant shall fail to sign the listing or specifically dissent in accordance with subsection (3) of this section, the tenant shall not be entitled to recover any damages under this section.” — https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35733 (accessed 2026-10-07)
• KRS 383.580(6): “In the event a tenant leaves not paying his last month's rent and does not demand a return of his deposit, the landlord may, after thirty (30) days, remove the deposit from the account and apply any such excess to the debt owing.” — https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35733 (accessed 2026-10-07)
• KRS 383.580(7): “In the event the tenant leaves not owing rent and having any refund due, the landlord shall send notification to the last known or reasonably determinable address, of the amount of any refund due the tenant. In the event the landlord shall not have received a response from the tenant within sixty (60) days from the sending of such notification, the landlord may remove the deposit from the account and retain it free from any claim of the tenant or any person claiming in his behalf.” — https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35733 (accessed 2026-10-07)