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Renters' Rights · Security Deposit

Security Deposit Laws in Indiana

The most a landlord can charge, how long they have to return it, and what it costs them to keep your money without cause in Indiana.

Draft entry: figures pending statute verificationStatute §§32-31-3-12, 32-31-3-13, 32…Source codes.findlaw.com

Prefer a calculator? Run your rent and move-out date through the Indiana security deposit calculator →

Security deposit at a glance · Indiana
No cap
Indiana sets no statutory maximum on a residential security deposit. Your lease sets the amount.
Maximum depositNo cap
Return deadline45 days
Interest to tenantNot required
Separate accountNot required
ItemizationRequired within 45 days
PenaltyFull deposit + attorney's fees
Statute§§32-31-3-12, 32-31-3-13, 32…

What your landlord can hold, and when it's due back

Enter your rent for the Indiana maximum, plus the return-deadline clock.

Deposit calculator · Indiana
Most a landlord can hold
No legal maximum
Indiana sets no statutory cap; the lease controls the amount.
Return clock: 45 days
The deadline runs after the termination of occupancy (the tenant vacates and returns possession). Give your landlord a written forwarding address at move-out so the clock starts.

Estimate only, based on Indiana's statutory cap. Your lease may set a lower deposit, and local ordinances can be stricter. Not legal advice.

The full rules, with the statute

Every requirement and where it comes from in the code.

Maximum deposit
No statutory cap. Indiana does not limit residential security deposits.

Exceptions: Indiana Code 32-31-3 sets no ceiling on the deposit amount. Market norms are usually one to one-and-a-half months' rent, but the statute imposes no limit.

Return deadline
Within 45 days after the termination of occupancy, the landlord must mail an itemized list of any damages claimed together with a check or money order for the balance of the deposit. The landlord is not liable under the chapter until the tenant supplies, in writing, a mailing address for the notice and refund (IC 32-31-3-14, -16).
Interest to tenant
Not requiredIndiana does not require a landlord to pay interest on a residential security deposit.
Separate account
Not requiredIndiana does not require the deposit to be held in a separate or escrow account. The landlord may commingle it with other funds.
Itemization
Required. Under IC 32-31-3-14, within 45 days after the tenant moves out the landlord must mail an itemized list of damages claimed, setting out the estimated cost of repair for each damaged item and the amounts owed. Under IC 32-31-3-15, failing to send this notice means the landlord agrees no damages are due and must return the full deposit at once.

Penalties & recent changes

What happens if the landlord keeps your deposit wrongfully.

If the landlord withholds wrongfully
If the landlord does not comply, IC 32-31-3-12 lets the tenant recover the full amount of the deposit due plus reasonable attorney's fees. The forfeiture rule is the sharp edge: under IC 32-31-3-15, a landlord who misses the 45-day itemized-notice deadline is treated as agreeing that no damages are owed and must refund the entire deposit, even if real damage exists. The landlord is not liable until the tenant has given a written mailing address.

What Indiana renters get wrong

Indiana puts no cap on the deposit amount and requires no interest and no separate account, which makes it fairly landlord-friendly on the front end. The catch is on the back end. A landlord has 45 days after you move out to mail an itemized list of any damage claimed along with a check for the rest of your deposit. If the landlord blows that 45-day deadline, the statute treats it as an admission that nothing is owed, and the landlord must return the whole deposit, even if there was real damage. Miss it and lose it applies to the landlord, not the tenant. One condition triggers the clock: you must give the landlord a written mailing address, so send one when you leave. A tenant who has to sue can also recover reasonable attorney's fees.

Common questions

How long does a landlord have to return my security deposit in Indiana?

45 days after you move out and return possession. Within that window the landlord must mail an itemized list of any damages claimed along with a check for the remaining balance. The clock starts once you give the landlord a written mailing address.

Is there a limit on how much a landlord can charge for a deposit in Indiana?

No. Indiana Code 32-31-3 sets no maximum, so the deposit is whatever the lease specifies. It is commonly one to one-and-a-half months' rent, but that is market practice, not a legal cap.

What happens if my Indiana landlord misses the 45-day deadline?

Under IC 32-31-3-15 the landlord is treated as agreeing that no damages are owed and must return your entire deposit at once. If you have to sue to get it back, you can also recover the full deposit plus reasonable attorney's fees.

Does my Indiana landlord have to pay interest on my deposit or keep it in a separate account?

No on both. Indiana does not require interest on a residential security deposit and does not require a separate or escrow account, so the landlord may hold it with other funds.

Primary source
Ind. Code §§32-31-3-12, 32-31-3-13, 32-31-3-14, 32-31-3-15
FindLaw (Indiana Code 32-31-3) · codes.findlaw.com
Draft: pending editorial review
Key figures were confirmed verbatim against FindLaw's reproduction of IC 32-31-3-12, -13, -14, and -15 and corroborated by a second independent source, but the official Indiana General Assembly page (iga.in.gov) is JavaScript-rendered and served no statutory text to the fetcher, so the official deep-link could not be confirmed this session. Editorial standards →

Not legal advicePlainStatute provides plain-language summaries of public law for general information only. This is not legal advice. Statutes change; always confirm current requirements with the official source linked above before acting.

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