Security Deposit Laws in Indiana

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

Under Ind. Code § 32-31-3-12 to 32-31-3-16, a landlord in Indiana has 45 days after you move out to either return your full security deposit or provide an itemized statement of deductions along with any remaining balance.

Important Indiana-specific details

Indiana's 45-Day Rule: landlord must mail the deposit refund AND itemized list of damages within 45 days after termination of rental agreement and delivery of possession. Critical: tenant must first provide the landlord a forwarding address IN WRITING — landlord's liability doesn't begin until this happens. Deposit may only be used for unpaid rent, damages beyond wear and tear, or unpaid utility/sewer charges.

What happens if the landlord misses the deadline in Indiana?

Missing the deadline has real consequences for landlords in Indiana. Under the statute, the penalty is: If landlord fails to comply with the 45-day rule, tenant may recover the entire security deposit plus reasonable attorney's fees, and landlord loses the right to withhold for damages (but can still sue separately for unpaid rent).

In practice, this means if your landlord doesn't return the deposit (or a proper itemized statement) within 45 days, you likely have a strong case in small claims court.

What can the landlord legally deduct from your deposit in Indiana?

Indiana law generally allows landlords to deduct for:

• Unpaid rent
• Damage to the unit beyond normal wear and tear — holes in walls, broken fixtures, stains, pet damage
• Cleaning costs, if the unit is left noticeably dirtier than at move-in
• Breach-of-lease costs, such as early termination fees where legally permitted

Landlords cannot deduct for normal wear and tear — faded paint, worn carpet from regular use, minor scuffs, or small nail holes from hanging pictures.

Calculator: check your deposit situation

Enter your move-out date and deposit amount below to see exactly when your landlord's deadline is — and whether they've already missed it.

What to do if your landlord won't return your deposit in Indiana

1. Send a demand letter by certified mail. Cite Ind. Code § 32-31-3-12 to 32-31-3-16 and the amount owed. Keep a copy and the delivery receipt.
2. Give the landlord a reasonable response window — typically 7 to 14 days after the demand letter.
3. File in small claims court. In most states you can sue for up to $5,000–$10,000 without a lawyer. Filing fees are usually $30–$75 and often recoverable as costs.
4. Bring evidence. Lease, move-in and move-out photos, the demand letter, proof of delivery, and any communications with the landlord.

For a complete walkthrough, see our guide: What to Do If Your Landlord Won't Return Your Security Deposit.