Overview
Leases are the cornerstone of a successful landlord-tenant relationship, providing a legal framework for both parties to enter a harmonious agreement.
Kentucky lease agreements—including their structure, nature, and contents—are regulated by Kentucky landlord tenant laws. For this reason, it’s imperative to understand the intricacies of the law before constructing a lease.
This guide will walk you through the crucial components of a lease agreement Kentucky considers compliant, ensuring you’re well-equipped to make informed decisions. And to make your journey easier, we’re offering a free Kentucky lease template for download!
What is a Kentucky Lease Agreement?
A Kentucky lease is a legally binding document that outlines the terms and conditions governing the rental of a residential property within the state. This lease adheres to Kentucky landlord-tenant laws, providing a clear framework for both landlords and tenants to follow and fostering a secure and transparent rental environment.
What is Included in a Kentucky Lease Agreement?
The following components should be included in every Kentucky rental lease. Keep in mind that these components apply primarily to residential leases; a Kentucky commercial lease agreement will necessarily have different components.
Lease Term
This section specifies the lease’s start and end dates, establishing the duration of the rental agreement.
Rent
Here, you’ll find details regarding the rent rate, due date, and the status of rent control. In Kentucky, rent control is banned – no city or county in Kentucky can pass a law that regulates or restricts the price of rent (<a href=”https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=23533″ target=”_blank” rel=”noreferrer noopener”>KRS § 65.875</a>). This means Kentucky landlords can decide for themselves an appropriate and reasonable price for rent given the current market. However, landlords should be aware that some municipalities may have laws regulating when and how rent increases can occur. Be sure you know the laws that apply in your region.
Late Fees
The penalties for missing rent payments should be clearly stated in the lease, as should any exceptions. In Kentucky, there are no statutory limits on late fees, nor is there a mandatory grace period for rent. This means Kentucky landlords can once again choose their own reasonable fee amounts for late rent. However, every Kentucky lease agreement should clearly explain the landlord’s late fee policy (including the late fee amount and when it applies), so that tenants understand exactly what will happen if they are late to pay rent.
Security Deposit
This section of the lease includes details about the security deposit, including its amount, where it will be stored, and how/when it will be returned.
In Kentucky, there is no maximum or limit for security deposits. However, Kentucky does have laws regulating other aspects of security deposits. All deposits in Kentucky must be kept in a separate bank account or lending institution regulated by either the Commonwealth of Kentucky or a federal agency. Additionally, when the lease eventually terminates, the landlord must return the security deposit to the tenant (minus any deductions) within 30 days (<a href=”https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35733″ target=”_blank” rel=”noreferrer noopener”>KRS § 383.580(6)</a>).
Each Kentucky residential lease agreement should clearly lay out the security deposit policy, including the amount of the deposit, when it will be returned, and the conditions under which funds may be withheld (e.g., unpaid rent/fees, damages beyond normal wear and tear, etc.).
Required Disclosures
This section encompasses crucial required disclosures, which are information that must be disclosed to the tenant in the lease before they agree to rent the property. These required disclosures must be included in a lease agreement Kentucky considers complaint, or else provided to the tenant in a separate written notice.
In Kentucky, the required disclosures are:
<ul>
<li><strong>Lead-based paint</strong> – Landlords in all 50 states must disclose lead-based paint hazards in rental agreements for most properties built before 1978.</li>
<li><strong>Landlord/agent identification</strong> – Landlords in Kentucky are required to disclose the name and address of the person authorized to manage the premises and receive notices.</li>
<li><strong>Security deposit receipt</strong> – All landlords in Kentucky must inform tenants of the location and account number where their security deposit is stored.</li>
<li><strong>Move-in/move-out checklist</strong> – Kentucky landlords must provide all tenants with a list of existing damages to the rental unit at the start of the tenancy and another list itemizing charges against the security deposit at the end of the tenancy.</li>
</ul>
Landlord Right to Entry
In Kentucky, there are specific laws governing when a landlord can enter a rental property. Landlords in this state must give at least two days’ notice before entering an occupied unit for any non-emergency reason (<a href=”https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35740″ target=”_blank” rel=”noreferrer noopener”>KRS § 383.615(3)</a>). Additionally, landlords may only enter at reasonable times, for purposes such as inspections, repairs, showings, etc. Be sure to include the landlord’s right of entry in all Kentucky rental agreements, including the possible reasons you might need to enter an occupied unit.
Repairs & Maintenance
The lease outlines how and when tenants should submit maintenance requests and clarifies the process for addressing necessary repairs. Every Kentucky residential lease agreement should specify which maintenance responsibilities are the landlord’s and which are the tenant’s.
Lease Termination/Renewal Procedures
This section details the procedures for early lease termination and breaking the lease, including eviction processes. Specifically, the lease should clearly state how many days’ notice the tenant needs to provide the landlord to announce their intent to either renew or terminate the lease.
A Kentucky residential lease agreement should also clearly describe what happens if the tenant breaks the lease. Before <a href=”https://innago.com/kentucky-eviction-process/” target=”_blank” rel=”noreferrer noopener”>filing for eviction in Kentucky</a>, landlords must send eviction notices of specified lengths: A <strong>seven-day pay or quit notice</strong> (for nonpayment), a <strong>14-day cure or quit notice</strong> (for lease violations), or a <strong>14-day quit notice</strong> (for repeated or severe violations). These notice periods should be specified to the tenant so that both parties are clear on what will happen if the tenant fails to uphold the lease agreement.
Joint and Severability Clause
This clause is for leases with multiple roommates and explains the legal consequences if one party fails to fulfill their obligations. It ensures that the entire lease isn’t invalidated due to one roommate’s breach.
Signatures
Both the landlord and tenant will sign the Kentucky rental agreement either on paper or electronically, ensuring a secure and convenient process.
Kentucky Lease Agreement Download
To make your leasing journey simpler, we offer a free, downloadable Kentucky lease agreement. This template is tailored to meet the specific requirements of Kentucky state law, making it a valuable tool for landlords and tenants.
Conclusion
Understanding the nuances of a Kentucky residential lease agreement is vital for a smooth and legal tenancy. We hope this guide has provided you with a clear understanding of the components of a Kentucky lease. To get started on the right foot, download our free Kentucky lease template and ensure a transparent, lawful, and satisfying rental experience.
