Lexington-Fayette enacted Ordinance 98-84 under KRS 383.505 to 383.710, Kentucky's landlord-tenant act provisions, according to the LFUCG Human Rights Commission, so the act's deposit rules apply there.
Lexington is one of the Kentucky localities where the state's landlord-tenant act applies, and the urban county government charges a local net profits fee on business income. For the Kentucky rules that apply statewide, see DSCR loans in Kentucky.
Does Kentucky's landlord-tenant act apply in Lexington?
Yes. Lexington-Fayette Urban County Government enacted Ordinance 98-84 under KRS 383.505 to 383.710, and a 2018 LRC statement lists Lexington/Fayette among localities that adopted the Uniform Residential Landlord and Tenant Act, which requires landlords to keep deposits in a separate account and give tenants a written list of existing damage at move-in and move-out.
- The Human Rights Commission page calls the ordinance the Landlord Tenant Act.
- No Lexington-specific deposit cap or interest rule was found.
Exception: The deposit rules come from the state act as adopted locally. Read KRS 383.580 for the details.
According to the LFUCG Human Rights Commission, Tenant Services and the Kentucky LRC Local Mandate Statement, 2018 HB 550, as read October 2026.
Does Lexington tax rental income?
Lexington-Fayette's 2021 net profits return (Form 228) sets a 2.25% net profits license fee on business net profits from activity in Fayette County, with a $100 minimum, and includes a worksheet line for rental income from federal Schedule E.
- The 2.25% rate and $100 minimum appear on the 2021 Form 228 net profits return.
Exception: Whether a particular individual landlord must file was not confirmed, and the rate may have changed since 2021. Ask your CPA and check the current year's form.
According to the LFUCG 2021 Net Profits License Fee Return, as read October 2026.
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