What Is the Maximum Security Deposit in Kentucky? There Is No Cap
Kentucky puts no ceiling on a security deposit. It instead regulates the account, the disclosure and the signed damage lists. Here is what the statute requires and where it applies.
Is there a maximum security deposit in Kentucky?
No. The deposit section sets no cap on the amount a landlord may require (KRS 383.580). What the lease asks for is a matter of contract and the market, so a landlord may ask for one month’s rent or three. The Kentucky security deposit limit calculator shows your deposit in months of rent and what the statute does require.
What does the statute regulate instead?
How the money is handled. A landlord that requires a deposit before occupancy must put all deposits in an account used only for that purpose and tell the prospective tenant where the account is and its number; before the tenant tenders any deposit it must present a signed listing of existing damage with estimated repair costs; and at move-out it must compile a signed final listing (383.580(1) to (3)).
Why does location matter?
The deposit section sits inside the Uniform Residential Landlord and Tenant Act, which a city, county or urban-county government may adopt in its entirety and without amendment (KRS 383.500). Louisville-Jefferson County and Lexington-Fayette County are among the places that have. Where the act has not been adopted, the lease and the common law govern; ask your clerk, and keep the lease’s deposit clause.
Is interest owed on a deposit?
The deposit section does not mention interest. A landlord may hold deposits in an interest-bearing account, but nothing in the section says who gets the interest. Ask the landlord in writing and keep the answer.
How does a tenant protect a large deposit?
Ask for the bank name and the account number in writing before you pay, because the statute says you must be told. Ask for the move-in listing and inspect the unit with it in hand. Sign only what is accurate and write down any dissent. Keep photographs. Those steps decide most disputes later.
When does the deposit come back?
The section sets no return date; it sets waits that favor the landlord when a tenant does nothing. See what Kentucky says about getting a deposit back.
Worked examples
| Monthly rent | Deposit | Result |
|---|---|---|
| $1,000 | $1,000 | One month; no cap applies |
| $1,000 | $2,000 | Two months; no cap applies |
| $1,000 | $3,500 | Three and a half months; no cap applies, ask why |
| $800 | $1,600 | Two months; no cap applies |
A checklist for landlords
Put every deposit in an account used only for deposits; give each prospective tenant the bank and account number; present a damage listing with estimated repair costs before taking money; inspect again at move-out and compile a final listing; and keep every signed list.
A checklist for tenants
Ask for the account information in writing before you pay; inspect the unit with the listing; sign only what is accurate; get a receipt for the deposit; and photograph the unit.
Why large deposits need more care
Because there is no cap, a larger deposit has a larger downside if something goes wrong, and the statute’s protections are about handling, not amount. A tenant asked for a large deposit should ask what it covers, where it is held and when it can come back, and keep the answers with the lease.
Where to get help
Legal aid and the district court clerk can explain how a deposit dispute is brought. Bring the lease, every receipt and the date you left.
Keep a timeline
Write down the date you paid, the date of the move-in listing and the date you left, because every later date depends on them.
Frequently asked questions
How much can a Kentucky landlord charge for a security deposit?
The deposit section sets no maximum.
Must the deposit be kept in a separate account?
Yes, an account used only for tenants’ deposits.
Must I be told where the deposit is held?
Yes, the location of the account and its number.
Is there a pre-payment damage list?
Yes, a signed listing of existing damage with estimated repair costs.
Does the section apply everywhere?
Only where the city or county adopted the act.
Official sources
A local landlord-tenant attorney can review your situation — many offer a free consultation.
This is general information, not legal advice. It is based on the cited Kentucky statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed Kentucky attorney.