Kentucky Security Deposit Demand Letter
In Kentucky a landlord must hold your deposit in a separate account and provide initial and final itemized damage listings. A landlord who ignores those rules forfeits the right to keep any of your deposit. Attorney review available.
Introduction
A security deposit demand letter is a written demand a Kentucky tenant sends a former landlord to recover a security deposit that has not been returned, before filing suit. Kentucky's security-deposit statute, KRS 383.580, requires the landlord to hold all deposits in a separate account and to prepare two comprehensive itemized damage listings, an initial listing before the tenant tenders the deposit or takes occupancy and a final listing at the termination of occupancy, each signed by the landlord and the tenant (KRS 383.580(1)-(3)). The statute sets no single fixed refund day-count; instead, if the tenant leaves owing last month's rent and does not demand return of the deposit, the landlord may apply the deposit to the debt after 30 days (KRS 383.580(6)), and if the tenant leaves owing no rent with a refund due, the landlord must send notice of the refund to the tenant's last known address and may retain the deposit only if the tenant does not respond within 60 days of that notice (KRS 383.580(7)). A landlord is not entitled to retain any portion of the deposit if it was not held in a separate account and the required initial and final listings were not provided (KRS 383.580(4)); the remedy is this forfeiture, not a statutory multiplier. A tenant who disputes the final listing may sue in District Court, limited to the items the tenant specifically dissented from (KRS 383.580(5)). District Court hears small claims up to $2,500 (KRS 24A.230), and the deadline to sue on a written lease executed after July 15, 2014 is ten years (KRS 413.160). KRS 383.580 applies only where the local government has adopted Kentucky's Uniform Residential Landlord and Tenant Act (KRS 383.500). DocDraft builds your Kentucky security deposit demand letter from your facts, with attorney review available before you send it.
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Key Things to Know
- 1
A security deposit demand letter is a written demand a Kentucky tenant sends a former landlord to recover a deposit withheld in violation of the state's deposit rules, before taking the landlord to court.
- 2
A Kentucky landlord must hold all security deposits in a separate account used only for that purpose (KRS 383.580(1)).
- 3
The landlord must prepare two comprehensive itemized damage listings, an initial listing before the tenant tenders the deposit or takes occupancy and a final listing at the termination of occupancy, each signed by the landlord and the tenant (KRS 383.580(2), (3)).
- 4
KRS 383.580 sets no single fixed refund deadline: if the tenant leaves owing last month's rent and does not demand return, the landlord may apply the deposit to the debt after 30 days (subsection (6)); if the tenant leaves owing no rent with a refund due, the landlord must send notice and may retain the deposit only if the tenant does not respond within 60 days (subsection (7)).
- 5
A landlord is not entitled to retain any portion of the deposit if it was not held in a separate account and the required initial and final listings were not provided (KRS 383.580(4)). This forfeiture is the remedy; there is no statutory multiplier.
- 6
A tenant who disputes the final listing may sue in District Court, but recovery is limited to the items the tenant specifically dissented from in writing under KRS 383.580(3), (5).
- 7
District Court hears small claims up to $2,500 (KRS 24A.230); the deadline to sue on a written lease executed after July 15, 2014 is ten years (KRS 413.160). KRS 383.580 applies only where the local government has adopted Kentucky's URLTA (KRS 383.500).
Key decisions before you file
Before you file a Security Deposit Demand Letter in Kentucky, a few decisions shape the document: which option to choose and what each one means. The Security Deposit Demand Letter guide walks through them.
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Kentucky Requirements for Security Deposit Demand Letter
No Fixed Deadline: 30-Day and 60-Day Mechanics
KRS 383.580 sets no single fixed refund deadline. If the tenant leaves owing last month's rent and does not demand return, the landlord may apply the deposit to the debt after 30 days (KRS 383.580(6)); if the tenant leaves owing no rent with a refund due, the landlord must send notice and may retain the deposit only if the tenant does not respond within 60 days (KRS 383.580(7)). Your demand letter starts the clock in your favor.
Separate-Account Requirement
A Kentucky landlord must deposit all tenants' security deposits in an account used only for that purpose, in a bank or lending institution subject to regulation (KRS 383.580(1)). Failure to hold the deposit in a separate account is one of the conditions that forfeits the landlord's right to retain it.
Two Comprehensive Damage Listings
A Kentucky landlord must prepare an initial comprehensive listing of existing damage before the tenant tenders the deposit or takes occupancy, and a final comprehensive listing at the termination of occupancy, each with the estimated cost of repair and each signed by the landlord and the tenant (KRS 383.580(2), (3)).
Tenant's Right to Dissent to the Final Listing
If a Kentucky tenant disagrees with the final damage listing, the tenant must state in writing the specific items dissented from and sign that statement of dissent (KRS 383.580(3)). A tenant who fails to sign or specifically dissent may be unable to recover those amounts later, so identify disputed charges clearly in your demand letter.
Forfeiture of the Right to Retain
A Kentucky landlord is not entitled to retain any portion of a security deposit if the deposit was not held in a separate account as required and the initial and final damage listings were not provided (KRS 383.580(4)). Kentucky's remedy is this forfeiture, not a statutory multiplier; point out any such failure in your demand letter.
District Court Dispute Limited to Dissented Items
A Kentucky tenant who disputes the accuracy of the final damage listing may bring an action in District Court, but the claim is limited to the items the tenant specifically dissented from under KRS 383.580(3), (5). Stating your dissented items in writing preserves them for a later claim.
Demand Return in Writing and Send With Proof of Delivery
Expressly demand return of the deposit in writing: a Kentucky tenant who owes last month's rent and does not demand return risks the landlord applying the deposit to the debt after 30 days (KRS 383.580(6)). Send the demand using a trackable method such as certified mail with return receipt, and keep a copy and the delivery record.
Small Claims Limit and Deadline to Sue
If the demand is ignored, a Kentucky deposit claim can be brought in the Small Claims Division of District Court, with a limit of $2,500, exclusive of interest and costs (KRS 24A.230). The deadline to sue on a written lease executed after July 15, 2014 is ten years (KRS 413.160).