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Indiana security deposit law

Source: Ind. Code §§ 32-31-3-9 to 32-31-3-19 · Checked against the statute

Maximum deposit
No statutory limit.
Return deadline
45 days (see details)
If the landlord keeps it wrongly
No multiple damages. A landlord who doesn't comply owes the deposit wrongly withheld plus reasonable attorney's fees and court costs (§§ 32-31-3-12(b), 32-31-3-16).

Calculate your Indiana deadline

Choose your state and move-out date to see when your landlord must return the deposit.

When the deposit must be returned

  • Deliver the balance and an itemized written notice of deductions within 45 days after the rental agreement ends and the tenant delivers possession.

The landlord isn't liable under the chapter until the tenant gives the landlord, in writing, a mailing address for the notice and refund.

Itemized list of deductions

Required: Yes. An itemized list of damages with the estimated cost of repair for each item, mailed with a check or money order for the balance.

What can and can't be deducted

The deposit may cover actual damage that is not the result of ordinary wear and tear, unpaid rent (including rent due from early termination), last month's rent if agreed in writing, and unpaid utility or sewer charges owed by the tenant.

Nonrefundable fees

The statute is silent on nonrefundable fees. Any money returnable to the tenant on condition of the unit's return, required prepaid rent beyond the first period, and rent above the average for the term count as deposits.

Interest, bank account and move-in inspection

  • Interest required: No. No interest requirement.
  • Separate account required: No. No separate-account requirement.
  • Move-in inspection required: No. The statute does not require a move-in inspection or condition checklist.

Penalties and bad faith

No multiple damages. A landlord who doesn't comply owes the deposit wrongly withheld plus reasonable attorney's fees and court costs (§§ 32-31-3-12(b), 32-31-3-16).

Failing to send the damage notice within 45 days counts as the landlord's agreement that no damages are due, and the full deposit must be returned immediately (§ 32-31-3-15).

Getting your deposit back in court

Small claims cases filed on or after July 1, 2021 are limited to $10,000. Court information

Before filing, many tenants send a written demand first. Write a Indiana demand letter →

Also good to know

  • State law bars cities, towns, and counties from regulating security deposits (Ind. Code § 32-31-1-20).
  • Any waiver of the deposit chapter is void.
  • A landlord who sells the property stays liable for the deposit for one year unless the buyer assumes it and receives the deposit.

Sources

Laws change. This page was checked against the sources above on October 11, 2026. It is legal information, not legal advice; see our methodology.