Real Estate Accounting in Lexington
Kentucky has an unusual provision for deposits nobody claims, and it is one of the few places where a landlord can eventually take unclaimed tenant money legitimately. The path to it is procedural and easy to miss.
Proud AppFolio Stack™ Partners, working directly inside your AppFolio instance.
Kentucky rules that apply here
- Deposit return deadline
- Notification at termination, 60 days to resolve unclaimed
- Statute
- KRS 383.580
Why Kentucky Real Estate Professionals Choose REA
AppFolio Expertise, Applied to Lexington
Experts in AppFolio Bookkeeping
Where a tenant leaves owing no rent and a refund is due, the landlord notifies the tenant at the last known or reasonably determinable address. If no response arrives within 60 days of that notification, the landlord may remove the deposit from the account and retain it free from the tenant's claim. That is a genuine resolution mechanism, and it depends entirely on having sent the notification and being able to evidence when.
Assigned, Responsive Team
Most portfolios never use it, and the consequence is a deposit liability that grows year after year with balances for tenants who left long ago. That distorts the trust reconciliation and makes it impossible to say what the account actually owes. We track notification dates so the 60-day period is a tracked event rather than an accident, and unclaimed balances resolve rather than accumulate.
Accurate Monthly Bookkeeping
The same discipline supports the retention conditions. Kentucky forfeits retention where the separate account or the damage listings were missing, so the file that supports keeping an unclaimed deposit is the same file that supports keeping a claimed one.
Deposit Compliance for Lexington Portfolios
KRS 383.580
Kentucky KRS 383.580 makes retention CONDITIONAL on steps taken before any dispute: a landlord is not entitled to retain any portion of a deposit if it was not held in a separate account used only for that purpose, or if the required initial and final damage listings were not provided. The initial list, covering existing damage with estimated repair costs, must be provided BEFORE the tenant tenders the deposit, and both parties sign it.
The deposit account must be used only for deposits, at an institution regulated by Kentucky or the United States, and prospective tenants must be told its location and account number. Kentucky also provides a genuine resolution route for unclaimed funds: where a tenant leaves owing no rent and does not respond within 60 days of notification sent to the last known address, the landlord may remove and retain the deposit free of the tenant's claim.
All Kentucky requirementsHow we keep you inside it
- Deposit liabilities tracked per tenant in AppFolio, so a Notification at termination, 60 days to resolve unclaimed deadline is answerable from the ledger
- Trust accounts reconciled three ways every month
- Deduction documentation recorded against the correct ledger
- Aging deposits flagged before the statutory window closes
Appfolio Bookkeeping Services from REA
Available to Lexington Operators
Trust Bookkeeping
Leverage Appfolio's powerful bookkeeping capabilities with REA's tailored service.
See how it worksCorporate Bookkeeping
REA's skilled team, in combination with Appfolio's comprehensive toolset, addresses the complexity of your corporate financial activities.
See how it worksBank Reconciliations
Employing Appfolio's state-of-the-art system, REA offers bank reconciliation services that brings meticulous accuracy to your finances.
See how it worksFinancial Diagnostic Cleanup
REA utilizes Appfolio's advanced diagnostic tools to swiftly and effectively troubleshoot financial anomalies.
See how it worksTrust Compliance
REA pairs its accounting prowess with Appfolio's detailed reporting to deliver comprehensive Trust Compliance Verification services.
See how it worksAppFolio Accounting & Bookkeeping Services
For Lexington Portfolios
- Process Review & Set Up
- Bank Reconciliations
- AP / AR
- Accurate NOI, Balance Sheets
- Recording HUD's & Accruals
- Owner Distributions
- Monthly Statements & Reports
- Management Fees
- Corporate Bookkeeping
- Tenant Chargebacks
Take the Whole Close, or One Function
Lexington operators use REA for the full monthly close or for the single function that has become a bottleneck. Each one is performed inside your AppFolio instance.
Trust Accounting
Compliant, audit-ready trust funds
Learn moreBank Reconciliation Services
Three-way reconciliation, every account
Learn moreAccounts Payable & Receivable
Bills paid, rent collected, owners paid
Learn moreBookkeeping Cleanup & Catch-Up
Back books fixed and current
Learn moreCAM Reconciliation
Annual commercial true-ups
Learn moreExperts In All Property Types
- Single-Family
- Multifamily
- Student Housing
- Affordable Housing
- Community Associations
- Commercial
Experts In All Property Types
Residential, commercial and everything in between. The asset class changes what the books have to prove, and our teams are staffed accordingly.
- Single-Family
- Multifamily
- Student Housing
- Affordable Housing
- Community AssociationsSee the page
- CommercialSee the page
Check Out What Our Clients Have To Say About Us
Property Managers, Investors & Owner Operators
I highly recommend Real Estate Accounting (REA) services from this group. They truly are great and have helped us tremendously at a time we needed it the most. I felt very comfortable giving up all my accounting responsibilities to this team and I'm still glad I made the decision to work with this group. Nothing less than an amazing experience!
REA and team have been nothing but excellent helping our firm with its day to day financial needs. Their expertise, professionalism, and timeliness have made our lives so much easier. We foresee a long relationship with REA and team.
Real Estate Accounting truly is a special company. They helped as if they were a part of our company, with the concern and caution as an employee would have, but even more. They quickly ascertained our needs and developed an effective team to help with our accounting needs. They were extremely responsive and always accurate. I would recommend their services to anyone who needs help with their property management accounting.
Frequently Asked Questions
Can we keep a deposit the tenant never claimed?
Kentucky allows it where the tenant left owing no rent, you notified them at the last known address, and no response came within 60 days. It depends on having sent that notification and being able to prove when.
Why do old deposits pile up on our books?
Because the notification step is skipped, so the 60-day resolution never starts. The liability then grows with balances for tenants who left years ago and the trust reconciliation stops meaning anything.
Does the same paperwork matter for normal deductions?
Yes. The separate account and the initial and final damage listings are preconditions for retaining any deposit, claimed or unclaimed.
More in Kentucky
Other Kentucky markets, the platforms we work in, and the functions available on their own.
AppFolio Bookkeeping for Lexington
Schedule a call and we will review your AppFolio setup, your Kentucky deposit handling, and what it takes to close clean every month.