Indiana Security Deposit Laws: Tenant Rights & Protections

Security deposits are a key part of renting in Indiana. Knowing your rights helps ensure you get your deposit back and avoid unfair charges. This article explains Indiana's security deposit laws, how landlords must handle your deposit, and what to do if you face problems as a renter.

Understanding Security Deposit Basics in Indiana

Indiana law regulates how landlords collect, hold, and return security deposits for residential rentals. A security deposit is money you pay at the start of your lease to cover potential damages, unpaid rent, or violations of the lease terms.

• No legal limit: Indiana has no maximum for the amount a landlord can charge as a security deposit.
• Uses: Landlords can only use your security deposit for specific things, such as unpaid rent, repairs for damages beyond normal wear and tear, or costs for breaches of the rental agreement.
• Separate account: The law does not require landlords to hold your deposit in a separate, interest-bearing account.

Returning Your Security Deposit

After your lease ends and you move out, Indiana landlords must follow rules for returning your deposit:

• 45-day deadline: Landlords have 45 days to return your deposit or send you an itemized list of deductions.
• Written itemization: If the landlord keeps some or all of your deposit, they must give you a written, detailed list of charges—such as repairs or unpaid rent.
• Your forwarding address: You must provide a forwarding address in writing to receive your deposit and any notices.

If the landlord does not send your deposit or the written itemization within 45 days, you may be entitled to the full deposit and could recover court costs or attorney’s fees, according to the Indiana Security Deposit Law (Indiana Code 32-31-3).^[1]

What Counts as "Normal Wear and Tear"?

Normal wear and tear means the deterioration that happens through regular use—not damages from neglect or accidents. Examples:

• Faded paint or carpeting
• Minor scuff marks on walls
• Loose handles or hinges

Charges for damage beyond normal wear and tear—like broken windows, holes in walls, or large stains—can legally come out of your deposit.

Your Rights if a Landlord Violates Security Deposit Rules

If you don't get your security deposit, or you believe charges are unfair, Indiana gives you several protections:

• You can send a written demand for the deposit, referencing the 45-day law deadline.
• If the landlord refuses or ignores your request, you can file a lawsuit (usually in small claims court).
• If successful, Indiana law may require the landlord to refund your deposit, pay court costs, and sometimes attorney’s fees.

For detailed steps, see the How-To section below.

Official Forms: Security Deposit Recovery

• Small Claims Complaint Form: There is no single numbered state form; each county court may provide its own version. For example, the Indiana Small Claims Forms and Instructions page lists templates and instructions.
• Practical use: If your landlord fails to return your deposit, fill out your county's Small Claims Complaint form, attach supporting documents (lease, move-out letter, deposit record), and file with the court. This helps you recover the deposit through a legal judgment.

Who Handles Security Deposit Issues?

Indiana does not have a special rental housing board or tribunal. Security deposit disputes are handled through your local county Small Claims Court.

How to Request or Recover Your Security Deposit: Action Steps

• Move out, leave the unit clean, and take photos or videos as proof.
• Give your landlord a written forwarding address when you move.
• Wait up to 45 days for your deposit or an itemized statement of deductions.
• If you do not receive your deposit, send a written demand letter citing the law (Indiana Code 32-31-3-12).
• If still unpaid, gather your documents and file a complaint in your local Small Claims Court.

Each step strengthens your position in recovering any withheld funds.

FAQs: Indiana Security Deposit Laws

1. How much can my landlord charge for a security deposit in Indiana?
   Indiana law does not set a limit. Landlords can decide the amount, but most charge one or two months’ rent.
2. When should I expect my security deposit back?
   Your landlord has 45 days after your move-out to return your deposit or provide a detailed list of deductions.
3. What if my landlord won't return my deposit?
   Send a written request first; if refused or ignored, you can file a case in Small Claims Court to recover your money.
4. What counts as damage versus normal wear and tear?
   Damage is harm beyond regular use (like broken appliances), while wear and tear are minor signs of aging or everyday living.
5. Are there any required official forms for deposit disputes?
   You can use your county's Small Claims Complaint Form; search or visit the Indiana Small Claims Court Forms page for templates.

Key Takeaways for Indiana Renters

• Landlords must return security deposits or send a list of deductions within 45 days.
• Indiana law protects renters from unfair deposit withholdings.
• Keep documentation, provide a forwarding address, and act quickly if you face any disputes.

Need Help? Resources for Renters

• Indiana Small Claims Court Information – Find local courts and forms
• Indiana Housing & Community Development Authority – Programs and resources for renters
• Indiana Legal Help – Free legal information for tenants
• Indiana Security Deposit Law (Indiana Code 32-31-3) – Full legislation text

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1. Indiana Code 32-31-3: Security Deposits
2. Indiana Small Claims Court – Filing Instructions
3. Indiana Housing & Community Development Authority

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