Without a doubt the best part of being a landlord is having the paid rent on time, every month, for the length of the tenancy. The question of if the rent will be paid on time is always in the back of a landlord’s mind. For that matter, it’s important to understand the law surrounding rent payments, which can range from simple to a bit more time consuming, with additional paperwork.
When rent is due and when rent is late
Kentucky landlord tenant law specifies that periodic rent payments are due at the beginning of the month for annual or month-to-month leases, but a landlord and tenant can agree to a different due date. Just make sure that the actual due date is written into the lease agreement. Kentucky law does not specify a rent grace period, after which rent is considered late, so make sure to have that spelled out in the rental agreement as well. Furthermore, Kentucky law does not burden the landlord with a maximum late fee, but using good judgment and charging for reasonable costs of the rent being late is a good plan.
While the landlord cannot change the rental amount during the tenancy, rent can be increased, with notice to the tenant, for subsequent periods. Kentucky does not have a statute about the time frame for a rent increase notice, but again, a reasonable notice period is 30 days prior to the end of the agreement term. LeaseRunner’s Kentucky Residential Lease Agreement includes the 30 day notice period language.
Returned checks and tenant default
Kentucky is one of those states that has a statute for the maximum amount that can be charged for a returned check (NSF fee). KRS § 514.040 limits the returned check fee to $50. A solid rental agreement will have this fee listed so that expectations are set up front. And finally, when a landlord accepts rent from a tenant with knowledge of a default by the tenant under the rental agreement the landlord waives his right to terminate the rental agreement for that breach. So, be careful about accepting rent under certain conditions.