Indiana Security Deposit Law: Limits, Deadlines, and Penalties
What Indiana landlords can charge, when deposits must be returned, and what it costs to get it wrong. Last reviewed 2026-08-12.
How much can a landlord charge in Indiana?
Indiana sets no cap on security deposits; the amount is set by the lease. One month's rent is typical, and courts will enforce whatever amount the parties agreed to.
No statute addresses pet deposits — they are permitted, uncapped, and governed by the lease.
When must the deposit be returned?
The landlord must mail the refund and itemized notice within 45 days after the rental agreement ends and the tenant delivers possession. The duty is triggered by the tenant supplying a mailing address in writing — no forwarding address, no obligation to remit — and lease clauses purporting to extend the 45 days are void.
The written notice must itemize each damage claimed, with the estimated cost of repair for each item, covering unpaid rent, damages from tenant noncompliance, and unpaid utility or sewer charges (IC 32-31-3-13 and 32-31-3-14).
What happens if a landlord misses the deadline?
Failure to send the itemized notice within 45 days constitutes the landlord's agreement that no damages are due — the full deposit must be remitted immediately, and the tenant may recover the deposit due plus reasonable attorney's fees and court costs.
Interest and holding requirements
Indiana does not require landlords to pay interest on security deposits.
No statutory requirement — Indiana law does not require deposits to be kept in a separate account, escrow, or bond.
What Indiana landlords get wrong
Indiana practice revolves around the '45-day letter': no timely itemized notice means no deductions, period, plus liability for the tenant's attorney fees — and you cannot contract around the deadline. The clock only runs once the tenant gives you a written forwarding address, so document when (or whether) you received one. Deductions may cover unpaid rent, utility and sewer charges, and damage beyond ordinary wear and tear, but each item needs an estimated repair cost in the notice.
The law itself
Frequently asked questions
How long does a landlord have to return a security deposit in Indiana?
Forty-five days after the rental agreement ends and you deliver possession — but only once you've given the landlord a forwarding mailing address in writing. Within that window the landlord must mail your refund plus an itemized notice listing each deduction and its estimated repair cost. Lease clauses that try to give the landlord more than 45 days are void under Indiana law.
What happens if an Indiana landlord misses the 45-day deadline?
The law treats silence as the landlord's agreement that no damages are due. The landlord forfeits every deduction, must immediately remit the entire deposit, and if you have to sue, you can recover the full deposit plus reasonable attorney's fees and court costs. This is one of Indiana's firmest landlord-tenant deadlines, and courts enforce it strictly even when the property genuinely was damaged.
Is there a limit on security deposits in Indiana?
No. Indiana has no statutory cap on security deposits or pet deposits, no interest requirement, and no rule about where the money is kept. The amount is whatever the lease says, with one month's rent being the market norm. Because the statute is silent on amounts, your protection comes at move-out: the strict 45-day itemization rule and fee-shifting when landlords violate it.
Do I have to give my Indiana landlord a forwarding address to get my deposit back?
Yes. The landlord's obligation to mail the refund and itemized damage notice is not triggered until you supply a mailing address in writing. If you never provide one, you cannot later claim the landlord violated the 45-day rule. Hand over the address in writing at move-out, keep a copy or photo of it, and note the date — that starts the clock and preserves your remedies.
Keep reading
Deposit deadlines are easy to miss — until they cost you triple.
Vantric tracks your leases, deposits, and move-out dates in one place, built for landlords with 1–10 units.
Start Free TrialThis page is general information, not legal advice. Statutes change — verify against the official text linked above or consult a local attorney before acting.