KY laws on deposits when lease is broken early

[Phillip Pennington]

I'm not getting a clear answer in the law books so maybe somebody can help me. I had a tenant break their lease. I made a deal with them that I would only charge them up to 2 months rent while searching for a new tenant and of course they would lose their deposit. My intention was not to deduct their deposit from the damage charges after the move out inspection given that they broke their lease I was not going to apply that money in that manner. However, before sending them their final bill I am trying to make sure that is legal if I have to apply the deposit to their charges.

Can anybody provide some insight?