A Kentucky lease agreement is a legal document that defines the rights and duties of the landlord and the tenant. The main duty of the landlord is to allow access to the tenant for a certain period of time. The main responsibility of the tenant is to pay the rent before the due date determined in the lease agreement.
A lease agreement can be in the form of a written contract or a verbal agreement. In practice, many choose to draft a written lease agreement to clearly define the terms of the tenancy, house rules, and other rights and obligations of the contractual parties.
The tenant usually starts the procedure by submitting the application to the landlord. The landlord then reviews the application and checks the tenant's credit score. The landlord will then start the lease agreement drafting procedure if all the documents are in place.
Kentucky Lease Agreement Required Disclosures
If you are entering into a rental property agreement within the state of Kentucky, it is essential that you include the following mandatory disclosures within your lease agreement. They protect both the landlord and the tenant's rights and best interests.
Lead-based paint disclosure. According to federal law, all lease agreements for properties built before 1978 must include this disclosure. It contains information about any lead-based paint hazards at the property.
Name and address disclosure. The landlord must include the names and addresses of the property manager, owner, and person authorized to act on their behalf in the lease agreement. This information should be updated in case of any change. (§ 383.585)
Security deposit disclosure. If the landlord requires a security deposit, they must inform the tenant of the account where the deposit will be kept and the account number. (§ 383.580(1))
Move-in form. If the security deposit is required, the landlord must provide the list with all the pre-existing property damages and include it in the lease agreement. Both parties shall sign this list. (§ 383.580(2))
Kentucky Lease Agreement Optional Disclosures
Below you can find few disclosures that are not required in the state of Kentucky, but are commonly used by the contractual parties in order to prevent potential disputes and secure the rights of the parties:
Asbestos disclosure. In case there is asbestos present at the leased property, the landlord shall provide the tenant with guidelines for using the property without disturbing the asbestos fibers.
Pets disclosure. The landlord can provide rules for keeping pets at the rental unit and provide any additional security deposit to cover the potential damages caused by pets.
Shared utilities disclosure. In case the rental unit shares the same electricity, gas, or water meter with other units in the building, the landlord can explain how the monthly cost for these utilities is calculated for the rental unit.
Consequences of Non-Disclosure
If the landlord fails to disclose the lead-based paint hazard in the lease agreement, they can be fined up to $19,507. (24 CFR § 30.65)
Additionally, the tenant can file a civil lawsuit against the landlord for any damages caused by the non-disclosed safety and health hazards.
Kentucky Lease Agreement Security Deposits
Security Deposit Maximum
In Kentucky, there is no set maximum security deposit. Therefore, the landlord can charge any reasonable amount.
It is important that the landlord and the tenant determine the lease agreement before starting the lease and enter all the details regarding the security deposit in the lease agreement.
Security Deposit Return
In case the last rent is not paid or some damages need to be repaired, the landlord can use the security deposit to cover such costs after 30 days from the tenancy termination.
If the rent is paid and there are no damages, the landlord must notify the tenant. The landlord can keep the deposit if the tenant doesn’t reply within 60 days of sending the notification. (§ 383.580)
When is Rent Due in Kentucky? (Grace Period)
The rent is due on a day stipulated in the lease agreement. Parties are free to agree upon any day of the month as the rent-due day. If nothing is provided in the lease agreement, the rent is due at the beginning of each month. (§ 383.565)
Kentucky law provides a grace period of 5 days, before which the landlord cannot charge the late fees. (§ 359.215(1))
Kentucky Rent Late Fees
The late fee in Kentucky is limited to $20 or 20% of the monthly rent, whichever is greater. Any late fee shall be disclosed in the lease agreement. If not disclosed, the landlord cannot lawfully charge any amount for the late rent payment. (§ 359.215)
Kentucky NSF Checks
If the tenant uses the check with insufficient funds on the balance, they can be charged an NSF fee. This fee shall be disclosed in the lease agreement and cannot be more than $50 plus any additional processing fees. (§ 514.040(4)(b))
Kentucky Landlord’s Right to Enter
Unless in the case of an emergency, the landlord must give the tenant at least a 2-day advance notice before visiting the leased property.
The landlord can access the property if:
Reasons for Entry
Necessary repairs need to be done at the property
The landlord needs to make a property inspection
The property must be shown to the prospective tenants or purchasers
According to the court order
The tenant abandons the leased unit
Kentucky Lease Agreement FAQ
Yes, the lease agreement is a legally binding document in Kentucky.
If some of the clauses in the lease agreement are deemed invalid according to federal or state law, in most cases, this will not affect the validity of the lease agreement in its entirety.
When drafting the lease agreement for a property in Kentucky, make sure you follow the outline below:
Names and addresses of the landlord and the tenant
Information about the rental unit
Tenancy duration and maximum occupancy
Rent amount and methods of payment
Rights and duties of contractual parties
Lease termination rules
Simply download one based on the number of templates available on our website.
Based on your needs, you can choose between the following:
Residential and commercial lease agreement
Long-term lease and short-term rental agreement
Sublease and room rental agreement
After drafting and signing a lease agreement, you can start the move-in procedure by going to the property and doing a property inspection.
Make sure there are no cleaning or repairs needed at the property before moving in. If everything is in place, sign the move-in form. If you are the tenant, you can move on and pay the security deposit and the first month’s rent. After that, the landlord can hand over the keys to the property to the tenant.