Most residential landlords require tenants to pay a security deposit to cover any repairs needed when the tenant moves out, or to cover the tenant’s failure to pay the last month's rent.

Laws vary from state to state, but many states have statutes that provide the maximum amount of security deposit a landlord may require for a residential lease and the costs for which the landlord may use the security deposit (cleaning, repairs, unpaid rent) following termination of the lease.

These laws also provide a specific deadline (often 30-60 days) for the landlord to return the tenant’s security deposit following termination of the lease—after deducting any amount properly withheld, as allowed by law.

In Kentucky, the security deposit regulations for residential leases are governed by state law. Kentucky does not set a statutory limit on the maximum amount a landlord can charge for a security deposit. However, landlords are required to keep tenants' security deposits in a separate, federally insured account and must provide the tenant with the account's location. Upon termination of the lease, Kentucky law mandates that landlords must return the security deposit, minus any deductions for damages beyond normal wear and tear, unpaid rent, or other agreed-upon charges, within 30 to 60 days, depending on the lease agreement. If the landlord withholds any part of the security deposit, they must provide the tenant with an itemized list of deductions. If a landlord fails to comply with these requirements, they may be liable to the tenant for the amount wrongfully withheld and potentially additional damages.