A Louisville, KY Property Owner's Guide on Keeping Security Deposits

A Louisville, KY Property Owner's Guide on Keeping Security Deposits

Did you know that about 44 million people in America rent their homes? With so many people renting apartments in this country, there are bound to be a few bad apples.

This is a big reason why landlords ask tenants for security deposits.

However, a dispute can arise when it comes time to return tenant security deposits. When should landlords keep these deposits? This guide breaks down a few situations where it may be necessary.

Security Deposit Laws

Before we can dive into certain scenarios, it is important to know what the security deposit laws in Louisville are.

Because this city is located in Kentucky, there is no maximum security deposit amount that you can charge as a landlord. However, the recommended amount is usually between one and two months of rent.

When it comes time to return the security deposit, the landlord does have the right to withhold it if they claim there are damages to the apartment. In Kentucky, tenants have up to 60 days to dispute any claims that a landlord makes.

Property Checklist

Something important to keep in mind when it comes to security deposits is the property checklist. In Kentucky, you are legally required to do this before a tenant moves into an apartment. You also have to do this once more when a tenant is getting ready to leave an apartment.

What this checklist does is put any prior damages to the apartment in writing before the tenant moves in. Let's say that there was a loose faucet in the bathroom sink. With that being noted on a property checklist, a tenant would not be responsible for covering that repair cost if a landlord decided to replace it once they moved out.

Get this in writing to make sure that you and your tenant have a complete understanding of the state of the apartment before they move in.

Keeping Security Deposits

So, when does the landlord have the right to keep a security deposit? Well, as mentioned above, they have to notify the tenant what they are doing with the security deposit within 60 days.

If you decide to withhold a security deposit during this time, you have to itemize the damages that were caused in the apartment and how much it will cost to fix.

Let's say that a tenant put a hole in the wall that was not in your apartment before they moved in. You can hire a repairman to fill that hole and list the bill as part of the security deposit that you withheld from your tenant.

Get Help With Security Deposits

These are the main things you need to know about security deposits in Louisville. The main purpose of a security deposit is to cover any rental property damage that a tenant may cause.

However, there are laws that a landlord has to follow when managing this. Those laws include notifying a tenant within 60 days about their security deposit and creating a property checklist.

Do you need help managing your security deposits? Message us here today.