Indiana Security Deposit Rules: Limits and Return Timelines

Understanding how security deposits work in Indiana can help renters protect their money and ensure a smoother move-out. Security deposits are often a significant cost when moving in, so it’s essential to know Indiana’s rules about how much can be charged, what your landlord can deduct, and how quickly your deposit must be returned after you move out. This article covers the key legal facts, your rights as an Indiana renter, and what to do if there’s a dispute.

How Much Can a Landlord Charge for a Security Deposit in Indiana?

Indiana is among the states that do not set a maximum limit on security deposits. This means:

• Landlords can charge any amount as a security deposit for a rental property.
• Most landlords ask for the equivalent of one month's rent, but it can be higher.
• There are no separate rules for pet deposits or non-refundable fees. Any prepaid sum given to the landlord as a condition of renting may be treated as a security deposit.

While there is no cap, landlords cannot charge excessive deposits for discriminatory reasons, and must abide by fair housing rules. For more details, see the Indiana Security Deposit Law.

How and When Does a Security Deposit Have to Be Returned?

After you move out, your security deposit must be returned within a specific timeframe—unless your landlord claims part of it for damages or other valid deductions.

• Return Deadline: By Indiana law, your landlord has 45 days from the end of your lease to return your security deposit or provide a written, itemized list of any deductions.
• Written Notice Required: You must provide your landlord a forwarding address in writing. If you don’t, the landlord doesn’t have to send you the deposit or itemized list until you do.
• Itemized Statement: If the landlord withholds any amount, you are entitled to a detailed statement specifying the damages or unpaid costs being claimed.
• Permitted Deductions: Indiana law allows deductions for unpaid rent, damages beyond normal wear and tear, unpaid utility bills, and other costs outlined in your lease. Routine maintenance and normal wear (like worn carpets) cannot be deducted.

If no itemized statement or deposit refund is received within 45 days after you give your forwarding address, you may be able to reclaim your deposit in court, possibly including attorney’s fees and damages.

Relevant Indiana Forms for Renters

• Security Deposit Demand Letter (No state-issued form number)
  When and How to Use: If your landlord fails to return your deposit or issue an itemized statement within 45 days, you can send a written demand letter. This serves as proof you requested your deposit.
  Practical Example: After moving out and giving your forwarding address, if you don't receive your deposit within the legal deadline, send this letter as a formal request before seeking legal action.
  View official Indiana Attorney General sample demand letter

There is no standardized statewide security deposit return form. Written communication (sent by certified mail) is recommended for documentation.

Disputing Security Deposit Deductions

If you believe your landlord made unfair deductions or didn’t follow the legal process, you can take the following steps:

• Send a demand letter (as described above), giving the landlord a chance to correct the issue.
• If there is no satisfactory response, file a claim in your local small claims court for the disputed deposit amount.
• The Indiana court system provides guidance on filing small claims actions: Indiana Courts Self-Service Legal Center.
• Be prepared to show evidence, such as photos of the apartment at move-out, receipts, and copies of correspondence.

Official Tribunal / Board

Indiana does not have a single housing tribunal or landlord-tenant board. Security deposit disputes are usually resolved through your local Small Claims Court in your county.

The governing law is the Indiana Code Title 32, Article 31, Chapter 3 (Security Deposits).

FAQs About Indiana Security Deposits

1. Can my landlord charge a non-refundable cleaning fee in Indiana?
   Indiana law treats most move-in fees as part of the security deposit unless they are specifically and clearly labeled as non-refundable in your lease and not used to cover damage or unpaid rent.
2. What happens if my landlord doesn’t provide an itemized statement for deductions?
   If your landlord withholds part or all of your deposit but does not send you an itemized statement within 45 days after you provide your forwarding address, you have the right to recover the full deposit amount – potentially plus attorney’s fees if you take legal action.
3. Are pet deposits or pet fees treated differently?
   No—Indiana law does not differentiate. Any deposit (including pet deposits) is considered part of the total security deposit and subject to the same rules.
4. How do I provide my forwarding address?
   It’s best to give your new address in writing (email or letter) when you move out, and keep a copy for your records. This triggers the landlord’s 45-day deadline to return your deposit.
5. Where can I get help with a security deposit problem?
   You can seek help from the Indiana Attorney General’s office, your local legal aid organization, or the Indiana Courts Small Claims division.

Key Takeaways for Indiana Renters

• There is no legal cap on security deposits in Indiana, but your landlord must refund it (minus valid deductions) within 45 days.
• Always give your landlord a forwarding address in writing when moving out.
• If you believe your deposit was unfairly withheld, you can send a demand letter and file in small claims court if needed.

By following these basic steps and documenting everything, you can help protect your rights and your deposit.

Need Help? Resources for Renters

• Indiana Attorney General – File a Consumer Complaint
• Indiana Attorney General – Tenant Rights Resource Page
• Indiana Courts Self-Service Legal Center
• Read Indiana Security Deposit Law
• For local legal aid, search for Indiana Legal Services in your county

---

1. Indiana Code Title 32, Article 31, Chapter 3 – Security Deposits: Official legislation
2. Sample Deposit Demand Letter from Indiana Attorney General: Official Sample Letter
3. Indiana Small Claims Court Guide: Indiana Courts Self-Service

Categories

Renter Rights & Legal Protections Lease Agreements & Renewals Rent, Fees & Security Deposits Moving In: Inspections & Disclosures Moving Out & Ending a Lease Maintenance, Repairs & Habitability Health & Safety Standards Evictions & Lease Violations Roommates, Subletting & Shared Housing Discrimination & Fair Housing Laws Accessibility & Disability Accommodations Utilities, Services & Billing Affordable Housing & Rental Assistance Rent Control & Rent Stabilization Privacy Rights & Landlord Entry Security, Locks & Emergency Protections Dispute Resolution & Legal Aid Retaliation & Harassment Protections Mobile Home & Manufactured Housing Rights Special Housing Types & Situations