How to Be a Landlord in Kentucky
Becoming a Kentucky landlord offers some benefits and drawbacks. As in any other state, you can use the collected rent as income. However, you may need to keep back portions of that rent to cover the expenses of maintaining the property. You also need to familiarize yourself with the legal responsibilities you will have to your tenants under Kentucky law. Because becoming a landlord requires a long-term commitment, make sure you give the decision careful consideration before beginning the process.
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Instructions
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Own a rental property. To become a landlord, you must first possess property that can be rented out. You are not allowed to rent out property that you are also renting without the permission of your landlord. This practice is known as subletting and is forbidden in many lease agreements. If you do sublet, you must inform your tenant of that fact.
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Ensure your rental unit is habitable. Kentucky law does not permit you to rent out any property that could endanger the health and safety of your tenants. That means you can't rent a unit with broken windows, mold or other problems. Make sure these problems are corrected before you begin renting out the unit. Also, make sure you can supply all essential services to the unit, including gas, water and electricity.
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Decide the type of lease you want to offer. Kentucky law recognizes three types of leases: tenancy for years which last an extended period of time; periodic tenancies that are renewed each time you collect rent and have no specific end date; and holdover tenancy, which is an extension of the original lease without the signing of a new written agreement.
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Draw up the lease agreement. You may want to consult an attorney to ensure the document complies with Kentucky law. For example, the lease should include rent amounts, the move-in date, assignment of responsibilities for utility payments and maintenance, security deposit amounts, and rules regarding pets, visitors, parking and other applicable situations.
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Find a tenant. You do not have to rent the unit to the first person you find, although you must adhere to Kentucky's laws against discrimination. You cannot refuse to rent to someone on the basis of their religion, gender, race, ethnicity or family status. However, you do have the right to conduct a background and credit check on potential tenants. Keep in mind that you can be held responsible for criminal activity conducted in your rental unit and such activity can reduce the value of the property as well as your ability to rent it out in the future.
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Tips & Warnings
Keep the security deposit in separate bank account. Under Kentucky law, you can require tenants to pay a security deposit. If you do, the amount must be deposited into a bank account and information regarding that account must be included in the lease. If you do not make the information available, you are not entitled to keep any portion of the security deposit when the tenants leave the property.
References
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