General information, not legal advice. Landlord-tenant rules change, and cities and counties can add their own. Check the current statute and local ordinances, and talk to a licensed attorney before you act.
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The short version
- The landlord must return the deposit, less lawful deductions, with a written itemized notice no later than 45 days after the lease ends and the tenant gives up possession. The landlord is not liable until the tenant gives a mailing address in writing.
- The itemized list must show the estimated repair cost for each damaged item, and a landlord who fails to send it is treated as agreeing that no damages are due and must refund the full deposit.
- A landlord who does not follow the notice and refund rules owes the tenant the part of the deposit withheld plus reasonable attorney fees and court costs.
- Indiana law generally does not set a dollar or months limit on security deposits.
Indiana does not cap security deposits, but the landlord must send an itemized list of damages and any refund within 45 days after the tenant moves out. A landlord who skips the list is treated as agreeing that no damages are owed.
Indiana security deposits at a glance
| Rule | Indiana | Law |
|---|---|---|
| Deposit limit | Indiana law generally does not set a dollar or months limit on security deposits. | IC 32-31-3 |
| Deadline to return the deposit | The landlord must return the deposit, less lawful deductions, with a written itemized notice no later than 45 days after the lease ends and the tenant gives up possession. The landlord is not liable until the tenant gives a mailing address in writing. | IC 32-31-3-12 and IC 32-31-3-14 |
| Itemized deductions | The itemized list must show the estimated repair cost for each damaged item, and a landlord who fails to send it is treated as agreeing that no damages are due and must refund the full deposit. | IC 32-31-3-14 and IC 32-31-3-15 |
| Penalty for wrongful withholding | A landlord who does not follow the notice and refund rules owes the tenant the part of the deposit withheld plus reasonable attorney fees and court costs. | IC 32-31-3-16 |
How much you can collect
Deposit limit. Indiana law generally does not set a dollar or months limit on security deposits. (IC 32-31-3)
Holding the deposit
We could not confirm a statewide rule here. Check your county court or a local attorney.
Deductions and normal wear and tear
A deposit can cover unpaid rent and damage beyond normal wear and tear. Everyday aging, such as faded paint, small nail holes or light carpet wear, is not damage.
Itemized deductions. The itemized list must show the estimated repair cost for each damaged item, and a landlord who fails to send it is treated as agreeing that no damages are due and must refund the full deposit. (IC 32-31-3-14 and IC 32-31-3-15)
Returning the deposit
Deadline to return the deposit. The landlord must return the deposit, less lawful deductions, with a written itemized notice no later than 45 days after the lease ends and the tenant gives up possession. The landlord is not liable until the tenant gives a mailing address in writing. (IC 32-31-3-12 and IC 32-31-3-14)
Penalties for wrongful withholding
Penalty for wrongful withholding. A landlord who does not follow the notice and refund rules owes the tenant the part of the deposit withheld plus reasonable attorney fees and court costs. (IC 32-31-3-16)
Mistakes to avoid
- Skipping a dated move-in condition report with photos, then having nothing to compare against at move out.
- Charging for normal wear and tear.
- Missing the return deadline, even by a few days.
- Not asking for a forwarding address before the tenant leaves.
- Losing track of deposit money by mixing it with operating funds without a ledger.
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General information, not legal advice.
Verify current law
We last checked these Indiana rules on . Laws change and cities can add their own, so confirm the current text before you rely on it, and talk to a Indiana attorney about your situation.
Laws named on this page
- IC 32-31-3
- IC 32-31-3-12 and IC 32-31-3-14
- IC 32-31-3-14 and IC 32-31-3-15
- IC 32-31-3-16
Official sources
Indiana forms for this topic
Letters and checklists for this topic
The parts people misread.
Is there a limit on security deposits in Indiana?
Indiana law generally does not set a dollar or months limit on security deposits. Source: IC 32-31-3.
How long does a Indiana landlord have to return a deposit?
The landlord must return the deposit, less lawful deductions, with a written itemized notice no later than 45 days after the lease ends and the tenant gives up possession. The landlord is not liable until the tenant gives a mailing address in writing. Source: IC 32-31-3-12 and IC 32-31-3-14.
What happens if a Indiana landlord keeps a deposit wrongly?
A landlord who does not follow the notice and refund rules owes the tenant the part of the deposit withheld plus reasonable attorney fees and court costs. Source: IC 32-31-3-16.