Indiana Statewide Rule
Indiana Security Deposit Law: No Cap, 45-Day Return
Key Facts
- Deposit cap
- No statutory limit
- Return deadline
- 45 days after termination and delivery of possession
- Itemized statement
- Required; failure forfeits right to retain deposit
- Statute
- Indiana Code 32-31-3 (esp. 32-31-3-12, -14, -15, -16)
- Penalty
- Amount withheld plus reasonable attorney's fees and court costs
Summary
Indiana sets no statutory limit on the security deposit amount. Under Indiana Code 32-31-3, a landlord must return the deposit, minus itemized lawful deductions, within 45 days after the rental agreement ends and possession is delivered. A landlord who fails to provide the required itemized notice forfeits the right to keep any of the deposit.
Sec. 12. (a) Upon termination of a rental agreement, a landlord shall return to the tenant the security deposit minus any amount applied to: (1) the payment of accrued rent; (2) the amount of damages that the landlord has suffered or will reasonably suffer by reason of the tenant's noncompliance with law or the rental agreement; and (3) unpaid utility or sewer charges that the tenant is obligated to pay under the rental agreement; all as itemized by the landlord with the amount due in a written notice that is delivered to the tenant not more than forty-five (45) days after termination of the rental agreement and delivery of possession. The landlord is not liable under this chapter until the tenant supplies the landlord in writing with a mailing address to which to deliver the notice and amount prescribed by this subsection. Unless otherwise agreed, a tenant is not entitled to apply a security deposit to rent.
Full Breakdown
Indiana Code 32-31-3 governs residential security deposits and imposes no maximum amount. Under IC 32-31-3-12, a landlord "shall return" the deposit minus any sums for accrued rent, damages from the tenant's noncompliance, and unpaid utility or sewer charges, "itemized by the landlord with the amount due in a notice that is delivered to the tenant not more than forty-five (45) days after termination of the rental agreement and delivery of possession." Permitted deductions exclude ordinary wear and tear. IC 32-31-3-14 requires the itemized list of damages. Under IC 32-31-3-15, failing to provide that notice constitutes agreement that no damages are owed, requiring return of the full deposit. The landlord is not liable until the tenant gives a written mailing address.
Violations & Penalties
Under Indiana Code 32-31-3-15 and 32-31-3-16, a landlord who fails to deliver the itemized damages notice within 45 days agrees no damages are due and must return the full deposit; a non-complying landlord is liable for the amount wrongfully withheld plus reasonable attorney's fees and court costs.
Frequently Asked Questions
How much can a landlord charge for a security deposit in Indiana?
How long does a landlord have to return a security deposit in Indiana?
What can a landlord deduct from a security deposit in Indiana?
Sources
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