Indiana security deposit rules
Indiana sets no statutory limit on the size of a security deposit. The deposit must be returned not more than 45 days after termination of the rental agreement and delivery of possession, with a written itemized notice of any deductions (accrued rent, damages beyond ordinary wear, unpaid utility/sewer charges); the landlord is not liable until the tenant supplies a mailing address in writing. No interest is owed on the deposit under state law.
What the law requires
No statutory limit. Returned Not more than 45 days after termination of the rental agreement and delivery of possession, with a written itemized notice of any deductions (accrued rent, damages beyond ordinary wear, unpaid utility/sewer charges); the landlord is not liable until the tenant supplies a mailing address in writing. No cap and no interest requirement anywhere in IC 32-31-3 (secondary source iPropertyManagement confirms 'Maximum: None'). Failure to comply: tenant may recover the full deposit plus reasonable attorney's fees (§ 32-31-3-12(b)). The official iga.in.gov code viewer is a JavaScript application that returned no statute text to a fetch; text was read from the FindLaw mirror of the Indiana Code (current as of Jan. 1, 2026).
- Deductions: unpaid rent and damage beyond normal wear and tear, itemised in writing. Cleaning and repainting after ordinary use are normal wear in most states.
- Deadline: the 45-day clock usually starts when the tenant moves out and, in many states, when a forwarding address is provided. Missing it typically forfeits the landlord’s right to keep any of the deposit and can add statutory damages.
- Interest: none required under state law. Cities in some no-interest states have their own ordinances, so check the municipal code where you rent.
Move-out checklist
- Give written notice of the move-out date and a forwarding address; many deadlines only start when the landlord has the address.
- Photograph every room after cleaning, with a timestamp. Request a joint inspection where the state allows one.
- If the deadline passes, send a written demand citing Ind. Code § 32-31-3-12; § 32-31-3-14. Small-claims court handles deposit disputes in every state and most cap the claim well above a typical deposit.
Related Indiana rules
- Late fees: No statutory cap and no statutory grace period; no statute located. Late fees must be stated in the lease and be reasonable (confirmed via secondary sources iPropertyManagement and Landlord Studio). Late fee calculator.
- Notice to end a tenancy: One month's written notice to end a tenancy at will / month-to-month tenancy (Ind. Code § 32-31-1-1(a), phrased as notice delivered to the tenant); tenants give the same one-month notice by lease and common practice Notice calculator.
- All rules on one page: Indiana landlord and tenant law.
Frequently asked questions
How much can a landlord charge for a security deposit in Indiana?
There is no statutory cap in Indiana; the market and the lease decide. No cap and no interest requirement anywhere in IC 32-31-3 (secondary source iPropertyManagement confirms 'Maximum: None'). Failure to comply: tenant may recover the full deposit plus reasonable attorney's fees (§ 32-31-3-12(b)). The official iga.in.gov code viewer is a JavaScript application that returned no statute text to a fetch; text was read from the FindLaw mirror of the Indiana Code (current as of Jan. 1, 2026).
How long does a landlord have to return a security deposit in Indiana?
Not more than 45 days after termination of the rental agreement and delivery of possession, with a written itemized notice of any deductions (accrued rent, damages beyond ordinary wear, unpaid utility/sewer charges); the landlord is not liable until the tenant supplies a mailing address in writing. The statute is Ind. Code § 32-31-3-12; § 32-31-3-14.
Does a Indiana landlord have to pay interest on the security deposit?
No. Indiana law does not require interest on residential security deposits.