iThere are certain required disclosures that a landlord must make when renting property located within a jurisdiction that has adopted Kentucky’s Uniform Residential Landlord and Tenant Act (“URLTA”). While these disclosure requirements are straightforward, a landlord’s failure to comply can have serious consequences for both the landlord and the tenant.
Landlords requiring security deposits from their tenants must deposit those funds in an account used only for that purpose and must disclose the location of that account, as well as the account number, to the tenant.[1] This ensures that the security deposit is a legitimate hedge against damages to the premises and/or other breaches by the tenant of its obligations under the lease. Making the aforementioned disclosures aids in protecting the security deposit from being utilized/appropriated by the landlord for purposes prohibited under URLTA. This is especially important due the fact that the security deposit is essentially the property of the tenant being held in trust by the landlord.
Prior to receipt of the security deposit, however, the landlord is required to provide the prospective tenant with a comprehensive listing of all then-existing damage to the premises which might later serve as the basis for a charge against the tenant’s security deposit.[2] This disclosure by the landlord must also include the estimated cost of repairing the existing damage.[3] This protects the tenant from fraudulent charges against the security deposit upon move-out, and allows the tenant to inspect the unit to determine the accuracy of the list.
In the event that the landlord fails to comply with the URLTA requirements regarding security deposits, the landlord is not entitled to retain any portion of the security deposit.[4]
Finally, the landlord must provide a written disclosure to the tenant at the commencement of the lease which identifies the name and address of the person authorized to manage the premises, as well as the name and address of the owner or agent of the owner who shall service as the process agent and who is authorized to receive all notices and demands concerning the premises.[5] If, at any time during the tenancy, the landlord sells/conveys the subject premises to a third party and/or the manager of the premises terminates his management of the premises, the landlord and/or manager must provide notice to the tenant of such sale/conveyance and/or termination.[6] Otherwise, the landlord’s and/or manager’s liability with regard to the premises will continue beyond the date of sale/conveyance and/or termination.[7]
These minimum disclosure requirements for URLTA jurisdictions protect the interests of both the landlord and the tenant. Moreover, compliance with these disclosures, as the saying goes, isn’t just a good idea, it’s the law. If you have any questions regarding landlord-tenant issues, don’t hesitate to contact the attorneys at McBrayer.
[4] See KRS 383.580(4).
[5] See KRS 383.585(1).
[6] See KRS 383.600.
