Renting Out Your Property in Kentucky: A Guide for Landlords

Familiarize yourself with Kentucky's Uniform Residential Landlord and Tenant Act (URLTA). Note that this act only applies automatically in counties with populations over 68,000 or in counties that have adopted it by local ordinance. Research if your specific county has adopted these regulations. Key laws to understand include security deposit limits, notice requirements for entry, and eviction procedures.

Check with your local city or county government to determine if you need a Rental Property Business License to legally rent your property. Requirements vary by location within Kentucky, so contact your local government offices to confirm specific requirements for your area.

Complete the application for your rental property business license. Include all required information such as property address, owner details, and property specifications. Be prepared to pay any associated fees and potentially undergo property inspections as part of the licensing process.

Develop a comprehensive rental application to screen potential tenants. Include sections for personal information, rental history, employment details, income verification, references, and authorization for background and credit checks. Ensure your screening process complies with Fair Housing laws, which prohibit discrimination based on protected characteristics.

Draft a legally compliant lease agreement that includes all required Kentucky disclosures and terms. Include rent amount, payment terms, lease duration, security deposit details, maintenance responsibilities, pet policies, and other important terms. In Kentucky, there are no statutory limits on late fees, but they should be reasonable and specified in the lease.

For properties built before 1978, federal law requires landlords to disclose known information about lead-based paint hazards. Prepare this form and provide tenants with an EPA-approved pamphlet about lead-based paint. Keep signed acknowledgments from tenants for at least three years from the beginning of the tenancy.

Create a detailed checklist to document the condition of the property before the tenant moves in and after they move out. Include all rooms, fixtures, appliances, and exterior areas. Take date-stamped photographs to supplement the checklist. This documentation is crucial for security deposit disputes.

Create a document outlining specific rules for the property beyond what's in the lease. This may include quiet hours, common area usage, trash disposal procedures, parking regulations, and maintenance expectations. Ensure these rules are reasonable and don't contradict terms in the lease agreement or violate tenant rights under Kentucky law.

Prepare a receipt for security deposits that includes the amount received, date of receipt, and where the deposit will be held. In Kentucky, there is no statutory limit on security deposit amounts, but landlords must return deposits within 30-60 days after the tenant vacates (depending on whether URLTA applies in your county).

Create a form to notify tenants when you need to enter the rental property. In counties where URLTA applies, landlords must provide at least two days' notice before entering a rental unit except in emergencies. This form should include the date, time, and purpose of entry.

Obtain appropriate landlord insurance coverage for your rental property. Standard homeowner's insurance typically doesn't cover rental activities. Landlord policies generally cover property damage, liability protection, and lost rental income. Consider requiring tenants to obtain renter's insurance as well.

If applicable, register with the Kentucky Department of Revenue for tax purposes. Rental income is taxable, and you may need to collect and remit certain taxes depending on your location and situation. Consult with a tax professional to understand your specific obligations.

Develop a system for handling maintenance requests and emergencies. In Kentucky, landlords must maintain fit and habitable premises, including maintaining electrical, plumbing, heating, and other essential systems. Create a process for tenants to report issues and establish relationships with reliable contractors for repairs.

Understand federal and Kentucky fair housing laws to avoid discrimination claims. The Kentucky Fair Housing Act prohibits discrimination based on race, color, religion, national origin, sex, disability, and familial status. Some local ordinances may provide additional protections. Ensure your advertising, tenant selection, and management practices comply with these laws.

Schedule any required inspections for your rental property. Depending on your local jurisdiction in Kentucky, you may need inspections for code compliance, fire safety, or other requirements. Some areas require periodic inspections of rental properties to ensure they meet health and safety standards.