Indiana security deposit law turns on timing, address proof, and itemization
Indiana generally requires a landlord to return the security deposit or send an itemized written notice within 45 days after the rental agreement ends, possession is delivered back, and the tenant gives the landlord a mailing address in writing.
Watch this step
In Indiana, YOU help start the clean deposit timeline.
The 45-day rule is not just about moving out. It works best when three things are true:
- the rental has ended
- you returned possession
- you gave the landlord a mailing address in writing
If you have not sent your mailing address yet, send it now and keep proof.
Missing that step does not automatically mean you lose your deposit. But it can delay the process and make the Indiana deposit rules harder to use in a clean, straightforward way.
The core Indiana rule
Indiana Code chapter 32-31-3 is the main security-deposit statute family. The practical rule is that the tenant should give a mailing address in writing, document the end of the tenancy and return of possession, and then track whether the landlord sends the refund or a proper itemized accounting.
Indiana renters should pay attention here: give the landlord a mailing address in writing. That step helps start the clean deposit timeline.
What the landlord can usually deduct
- Accrued or unpaid rent.
- Actual damage to the rental unit or ancillary facility beyond ordinary wear and tear.
- Losses tied to tenant noncompliance with law or the rental agreement.
- Unpaid utility or sewer charges the tenant was required to pay.
- Last payment period rent only if a written agreement says the security deposit may be used that way.
Ordinary wear and tear is different from damage. Faded paint, light traffic wear, and normal aging should not be treated the same as tenant-caused damage.
Written notice and itemization
If the landlord keeps money for damages, Indiana generally requires a written notice with an itemized list. The notice should identify the claimed damage, estimated cost of repair, and the amount of the deposit being kept, with any remaining balance returned.
If the required notice is not sent after the tenant supplied the written mailing address and the timing trigger is met, Indiana law can treat the landlord as agreeing that no damages are due. Unpaid rent can remain a separate issue.
No statewide cap or ordinary interest requirement
Indiana does not have a general statewide security deposit cap or a general deposit-interest requirement for ordinary residential deposits in the statewide rule used for this guide.
Remedies if the landlord does not comply
When the tenant supplied the written mailing address and the landlord misses the required return or notice process, the tenant may be able to sue for the amount due and reasonable attorney fees where the statute and facts support them.
Do not assume every late or disputed deposit creates attorney fees or full recovery. The written address, timing, proof, claimed deductions, unpaid rent, and court findings still matter.
Official sources
Source reviewed: April 2026.
Related Indiana guides
If you want the Indiana letters organized by stage, the system keeps the timeline, address proof, itemization, and next demand in the same order you would use them.
Get the Deposit Recovery SystemImportant: This is general information and not legal advice.