Security Deposit Account for Landlords in Kentucky

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Benefits of security deposit accounts in Kentucky

Landlords

Security deposits before buying property

Tenants

Baselane account information of renters
Security deposit rules in Kentucky
  • Limit: No legal limit applies
  • Return Deadline: The security deposit must be returned within 30 days, or 60 days if the tenant disputes deductions
  • Acceptable Deductions: Unpaid rent, and damage beyond normal wear and tear
  • Where to Deposit: Security deposits must be placed in a bank OR lending institute subject to Kentucky or US regulation. Prospective tenants shall be informed of the location of the separate account and the account number. Security deposits may not be commingled with the personal funds of the landlord (Ky Rev Stat Ann 383.580(1)& (3)).
Security deposits rules in Kentucky

Why Kentucky landlords choose Baselane

Why choose rental security deposit account
  • All-in-One Platform with Banking, Rent Collection, and Accounting and more
  • Eligible to hold Security Deposits**
  • Free Rent Collection that’s landlord and renter friendly
  • Earn 4.46% APY and up to 5% Cash Back
  • Comprehensive cash flow analytics and reporting
  • Modern user interface and experience
  • Excellent Customer Support

**NOT LEGAL ADVICE. Please consult with an attorney and/or local city and state laws and requirements.

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Take Control of Your Spend

Open a security deposit bank account and use physical & virtual debit cards with custom spend controls and automated transaction tagging with Schedule E categories.

Easily Collect and Return Security Deposits

Collect funds into an account for security deposit via Bank Transfers (ACH payments), Deposit checks, or Wire.

Multiple modes of Payment

Easy to get started

1

Open a security deposit bank
account for free

Customer total balance in virtual card
2

Create a Virtual account
(aka - rental security deposit account)

Virtual account image
3

Collect security deposits

into a virtual account

Security Deposits amount image

Explore more Baselane features

Banking
Rent Collection
Accounting
Insurance
Get Your Free Rental Security Deposit Account Today
Make it easy to manage rental security deposit accounts with Baselane's Banking accounts.
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Frequently asked questions

How much is a security deposit in Kentucky?

In Kentucky, no legal limit applies.

In what other states can you use Baselane?

These are the other states where you can use Baselane: Arizona, California, Illinois, New Jersey, Texas, Virginia, and all major states in the USA.

How is the security deposit amount determined when using the Baselane service?

Tenants can cause much damage to your rental property, so you should aim to collect the largest security deposit the market will bear. One month’s rent is typical in most parts of the country, but you may be able to demand more if your rental property is in a particularly hot market.

Your state may set a cap on how much you can collect. Many states, including New York, Massachusetts, and Ohio, set the maximum security deposit you can collect at one month’s rent. Others, including California, Pennsylvania, and Maryland, limit security deposits to 2 months’ rent. There’s no limit on security deposits for rentals in Indiana and Florida.

How are my personal information and funds protected when using the Baselane security deposit accounts?

When your new tenant signs the lease, you should collect the security deposit and the first month’s rent. Be sure to give your tenant a detailed receipt for their deposit that includes all information required by local law. Consider using Baselane for automated rent collection to get paid faster, simplify your bookkeeping, and ensure you’re handling your deposits appropriately.

Do I need a new security deposit agreement if my tenant switches to month-to-month rent?

If local law states a lower maximum security deposit for month-to-month leases, you may be required to refund the excess amount. Otherwise, the lease’s initial terms usually apply when switching to month-to-month, and no change to the security deposit is required.

When can I collect the security deposit?

When your new tenant signs the lease, you should collect the security deposit and the first month’s rent. Be sure to give your tenant a detailed receipt for their deposit that includes all information required by local law. Consider using Baselane for automated rent collection to get paid faster, simplify your bookkeeping, and ensure you’re handling your deposits appropriately.