Real Estate Accounting in Louisville
Kentucky makes the right to retain a deposit conditional on two things that happen long before any dispute: a dedicated account, and a signed move-in damage list. Fail either and the deposit is not retainable regardless of what the tenant did.
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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 Louisville
Experts in AppFolio Bookkeeping
Under KRS 383.580 a landlord is not entitled to retain any portion of a deposit where it was not held in a separate account used only for that purpose, or where the required initial and final damage listings were not provided. Both are preconditions rather than best practice. The initial list, comprehensive and covering existing damage with estimated repair costs, must be provided before the tenant tenders the deposit, and both parties sign it.
Assigned, Responsive Team
That sequencing catches portfolios out. The list has to precede the money, so a unit let quickly with the deposit collected first has already failed the condition, and no amount of later documentation repairs it. We treat the signed list as a gating item in the move-in workflow rather than a form to be completed when convenient.
Accurate Monthly Bookkeeping
Kentucky also requires prospective tenants to be told the location of the separate account and its number, which makes the banking arrangement a disclosure obligation. A single pooled account across a portfolio still has to be identifiable to each tenant, and using an operating account forfeits retention outright.
Deposit Compliance for Louisville 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 Louisville Operators
Trust Bookkeeping
Leverage Appfolio's powerful bookkeeping capabilities with REA's tailored service.
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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 Louisville 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
Louisville 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
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Three-way reconciliation, every account
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Bills paid, rent collected, owners paid
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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
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Check Out What Our Clients Have To Say About Us
Property Managers, Investors & Owner Operators
As REA exclusively specializes in Real Estate, I rest easy knowing my financials are precise every month while saving money at the same time, an invaluable benefit.
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.
Frequently Asked Questions
What makes a Kentucky deposit non-retainable?
Two preconditions: it was not held in a separate account used only for deposits, or the required initial and final damage listings were not provided. Either failure forfeits retention regardless of the actual damage.
When does the move-in damage list have to be done?
Before the tenant tenders the deposit. Collecting the money first fails the condition, and later documentation does not repair it, so we gate the move-in workflow on the signed list.
Do tenants have to be told where their deposit is held?
Yes. Prospective tenants must be told the location of the separate account and the account number, which makes the banking arrangement itself a disclosure obligation.
More in Kentucky
Other Kentucky markets, the platforms we work in, and the functions available on their own.
AppFolio Bookkeeping for Louisville
Schedule a call and we will review your AppFolio setup, your Kentucky deposit handling, and what it takes to close clean every month.