SECURITY DEPOSIT ITEMIZATION & DISPOSITION LETTER

Kentucky Residential Tenancy – Ky. Rev. Stat. Ann. § 383.580 Compliance
Effective Date: [DATE]

TABLE OF CONTENTS

I. Document Header
II. Definitions
III. Operative Provisions
IV. Representations & Warranties
V. Covenants & Restrictions
VI. Default & Remedies
VII. Risk Allocation
VIII. Dispute Resolution
IX. General Provisions
X. Execution Block
Schedule 1 – Detailed Itemization of Security Deposit Disposition

I. DOCUMENT HEADER

1. Parties
   1.1 “Landlord”: [LANDLORD LEGAL NAME], a [STATE OF FORMATION] [ENTITY TYPE], having a principal place of business at [ADDRESS].
   1.2 “Tenant(s)”: [TENANT FULL LEGAL NAME(S)].
   1.3 “Premises”: [STREET ADDRESS, UNIT #, CITY, KY ZIP].

2. Recitals
   A. Landlord and Tenant entered into that certain Residential Lease Agreement dated [LEASE DATE] (the “Lease”) pursuant to which Tenant delivered a security deposit in the amount of $[AMOUNT] (the “Security Deposit”).
   B. Possession of the Premises was surrendered to Landlord on [SURRENDER DATE].
   C. Pursuant to Ky. Rev. Stat. Ann. § 383.580, Landlord hereby provides this written, itemized statement of any lawful deductions from the Security Deposit and tenders any balance due.

3. Governing Statute
   This letter is issued in compliance with Ky. Rev. Stat. Ann. § 383.580 (West, current through 2023 Reg. Sess.).

II. DEFINITIONS

The following terms, when capitalized, shall have the meanings set forth below:

“Business Day” – Any day other than Saturday, Sunday, or a Kentucky-recognized legal holiday.
“Damage” – Physical impairment to the Premises beyond ordinary wear and tear, including but not limited to [EXAMPLES].
“Itemization Deadline” – Thirty (30) calendar days following both (a) termination of the tenancy and (b) Tenant’s delivery of a valid forwarding address, as required by Ky. Rev. Stat. Ann. § 383.580(4).
“Response Period” – Sixty (60) calendar days after Tenant’s receipt of this Letter within which Tenant may contest the deductions pursuant to Ky. Rev. Stat. Ann. § 383.580(5).
“Statement” – The written accounting set forth on Schedule 1.

III. OPERATIVE PROVISIONS

3.1 Delivery of Statement. Landlord hereby delivers the Statement (Schedule 1) itemizing all deductions from the Security Deposit and enclosing a check in the amount of $[REFUND AMOUNT] payable to Tenant.

3.2 Method of Payment. Payment is tendered by (check / electronic transfer) drawn on [FINANCIAL INSTITUTION] and may be negotiated upon receipt.

3.3 Lawful Deductions. Deductions have been limited to:
a. Unpaid rent accruing through the Lease Term (if any);
b. Reasonable costs to repair Damage;
c. Reasonable cleaning necessary to restore the Premises to the condition required under the Lease;
d. Unpaid utilities or other charges assumed by Landlord under the Lease.

3.4 No Additional Set-Off. Landlord shall not apply any portion of the Security Deposit to future or contingent claims not presently known.

IV. REPRESENTATIONS & WARRANTIES

4.1 Accuracy. Landlord represents that each deduction listed on Schedule 1 reflects the actual and reasonable cost incurred or to be incurred, supported by invoices or estimates available for inspection upon reasonable request.

4.2 Statutory Compliance. Landlord warrants that (i) the Security Deposit has been maintained in a segregated account as required by Ky. Rev. Stat. Ann. § 383.580(1), and (ii) the Statement is issued within the Itemization Deadline.

V. COVENANTS & RESTRICTIONS

5.1 Tenant’s Inspection Right. Upon written request within the Response Period, Tenant may inspect receipts, invoices, or other evidence substantiating the deductions.

5.2 Tenant’s Response. Tenant may contest any deduction by delivering written objections to Landlord at the address set forth in Section X no later than the expiration of the Response Period.

VI. DEFAULT & REMEDIES

6.1 Tenant Inaction. If Tenant fails to object in writing within the Response Period, Tenant’s right to recover any portion of the Security Deposit shall terminate as provided in Ky. Rev. Stat. Ann. § 383.580(5), and Tenant shall be deemed to have accepted the Statement as final.

6.2 Disputed Amounts. Should Tenant timely object, the disputed portion shall be resolved through the forum designated in Section VIII.

6.3 Attorney Fees. In any action to enforce rights arising out of or related to this Letter, the prevailing party shall be entitled to recover reasonable attorney fees and costs to the maximum extent permitted by law.

VII. RISK ALLOCATION

[// GUIDANCE: Kentucky statutory scheme does not authorize indemnification within a security-deposit itemization context; this section is intentionally limited.]

7.1 Statutory Penalties. Landlord acknowledges potential statutory penalties for non-compliance with Ky. Rev. Stat. Ann. § 383.580(7) and has drafted this Letter to avoid such exposure.

VIII. DISPUTE RESOLUTION

8.1 Governing Law. This Letter and any dispute relating hereto shall be governed by the laws of the Commonwealth of Kentucky, without regard to conflict-of-laws principles.

8.2 Forum Selection. Exclusive jurisdiction and venue shall lie in the [COUNTY] District Housing Court (or other court of competent jurisdiction within the Commonwealth).

8.3 Arbitration. The parties expressly decline arbitration.

8.4 Jury Trial. Nothing herein shall be construed to waive any constitutional right to trial by jury.

8.5 Remedies. The parties acknowledge that monetary damages are an adequate remedy for disputes under this Letter; injunctive relief is neither sought nor conceded.

IX. GENERAL PROVISIONS

9.1 Entire Agreement. This Letter and Schedule 1 constitute the entire statement of the disposition of the Security Deposit and supersede all prior or contemporaneous communications on that specific subject.

9.2 Amendments. No amendment or modification shall be effective unless in a writing signed by both Landlord and Tenant.

9.3 Notices. Any notice under this Letter shall be delivered (i) personally, (ii) by certified U.S. mail, return receipt requested, or (iii) by nationally-recognized overnight courier, to the addresses below. Notice is effective on receipt.

9.4 Severability. If any provision of this Letter is determined unenforceable, the remainder shall continue in full force, and the invalid provision shall be reformed to the minimum extent necessary to effectuate its purpose.

9.5 Counterparts; Electronic Signatures. This Letter may be executed in counterparts, each of which is deemed an original, and all of which together constitute one instrument. Electronic signatures shall be deemed originals for all purposes.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, Landlord has executed this Security Deposit Itemization & Disposition Letter as of the Effective Date.

LANDLORD:
[LANDLORD LEGAL NAME]

By: ____
Name: [PRINTED NAME]
Title: [CAPACITY / AUTHORITY]
Date: ________

Tenant acknowledgment (optional but recommended):

TENANT:
[TENANT NAME]

By: ____
Signature Date Received: _______

Landlord Notice Address for Disputes:
[LANDLORD ADDRESS FOR NOTICES]

SCHEDULE 1

DETAILED ITEMIZATION OF SECURITY DEPOSIT DISPOSITION

[// GUIDANCE: Attach photocopies of invoices, receipts, or estimates behind this Schedule to strengthen evidentiary position if Tenant contests.]

[// GUIDANCE: Attorneys should confirm whether the county where the Premises is located has adopted Kentucky’s Uniform Residential Landlord and Tenant Act. If it has not, common-law principles apply and statutory deadlines may differ. Consider adding a paragraph modifying the timing provisions for non-URLTA counties.]