There are a few laws that must be followed in Kentucky when you create a rental application for tenants. Failure to comply with these rules could lead to serious legal consequences and allow the tenant to sue.
Application Fee
You can charge as much as you wish as a rental application fee (No Statute). There are no laws in Kentucky providing a set limit, although it is recommended to only charge enough to cover the costs of any background checks. Any amount charged to the tenant is also non-refundable.
Security Deposit
Kentucky doesn’t set any limits on how much you can charge as a security deposit (No Statute). However, it is recommended not to charge more than 1-2 months rent for this amount.
Housing Discrimination Law
In Kentucky, there is no specific state law relating to housing discrimination. However, the Fair Housing Act (FHA) is in place. The FHA states that it is illegal to discriminate based on the following characteristics:
- Race
- Nationality
- Religion
- Sex
- Familial status
- Disability
- Criminal history
As a consequence, you are not allowed to ask for any of these details on a KY Rental Application form, nor to include them in the decision-making process.
Notice of Eligibility
You must disclose the screening criteria used during the application process, as well as anything that could lead to a refusal. To make sure individuals understand this in advance of the application, they must provide a signature of acknowledgment on the application (900 KAR 10:120).
Consent Credit Check
Under the Federal Credit Reporting Act (FCRA), tenants being screened in Kentucky must consent to any credit checks you wish to carry out. To make sure you comply with the law, the applicant must provide written acknowledgment of the screening on the application form.