Start with the type of charge
Indiana landlords may deduct only supported categories from a security deposit. Common categories include accrued rent, actual damages beyond ordinary wear and tear, certain tenant noncompliance, unpaid utility or sewer charges the tenant was required to pay, and last-period rent only if a written agreement allows that use.
Lawful deduction categories
- 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 charges the tenant was obligated to pay.
- Unpaid sewer charges the tenant was obligated to pay.
- Last payment period rent only if a written agreement says the deposit may be used for that purpose.
Ordinary wear and tear
Ordinary wear and tear is normal deterioration from ordinary use. A landlord should not treat normal aging, light scuffs, minor traffic wear, or faded finishes the same as damage caused by misuse, neglect, or avoidable harm.
Itemized notice
If the landlord claims damages, Indiana generally requires an itemized written notice. The notice should identify the claimed damages and estimated repair costs. A vague statement like "cleaning" or "repairs" may not be enough to understand what was kept and why.
Early move-out and rent claims
If the tenant leaves before the lease obligation ends, rent may still be an issue depending on the lease, surrender, re-rental, agreement, and facts. Keep rent claims separate from damage claims when reviewing the landlord's accounting.
Sources used for this guide
Source reviewed: April 2026.
- Indiana Code chapter 32-31-3
- Indiana Code section 32-31-3-12
- Indiana Code section 32-31-3-13
- Indiana Code section 32-31-3-14
Related Indiana guides
- Indiana security deposit law
- Normal wear and tear in Indiana
- Indiana evidence checklist
- Indiana deadline guide
If deductions are vague, unsupported, or ordinary-wear charges, a staged written response can help keep the dispute organized.
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Important: This is general information and not legal advice.