Indiana Security Deposit Laws
The sky is the limit for landlords asking for security deposits, so it’s important you take the time to learn about Indiana security deposit laws and your rights.
Written by Matt Terzi
Reviewed by Melanie Reiff
Landlords in
Indiana
are legally free to set security deposits to whatever they want, so it’s important you take the time to carefully read a lease before you sign it and make sure the terms are reasonable. And learning about Indiana security deposit laws is a great first step.If this is your first-ever apartment, in Indiana or elsewhere, here’s a little disclaimer: security deposits are awful. They can price some apartments out of contention, and people not getting their security deposits back has become a running joke in this country. Unless you’re a landlord, security deposits are just all-around icky.
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What is Indiana’s Law on security deposits?
Indiana doesn’t ask much of landlords when it comes to security deposits. Some states require receipts of deposits, or for deposits to be placed in interest-bearing accounts, but Indiana doesn’t expect any of that of landlords.
The good news: Indiana’s security deposit laws do insist landlords pay back the security deposit, minus any funds they legally withhold. But apart from that, the security deposit laws in Indiana are fairly lax.
What is the maximum security deposit a landlord can charge in Indiana?
The State of Indiana virtually gives landlords free rein to ask for whatever security deposit they want. It’s up to individual cities and counties to impose limits on security deposits, and these limits are completely determined in some areas by market forces alone.
You’ll want to check local laws and county laws where you’ll be renting to see if they have any limits on security deposits. Most landlords will try to keep their security deposit requirements competitive, but this won’t always be the case, so read your lease carefully.
How long does a landlord have to return a security deposit in Indiana?
When you move out of an apartment, it’s crucial that you submit to your landlord a mailing address where you can receive your security deposit in writing. Landlords are not obligated to pay back your security deposit until you’ve done that.
Landlords in Indiana are required to return the final balance of your security deposit via check or money order within 45 days of your vacating the property, after reasonable, itemized deductions are withheld.
In some states, landlords are expected to perform a walk-through inspection of the property prior to your moving, but Indiana doesn’t have this requirement either. Some landlords do this as a courtesy, but many won’t.
What can a landlord withhold a security deposit for in Indiana?
While most of the Hoosier State’s security deposit laws are pretty relaxed, landlords in Indiana are required to provide you with an itemized list of deductions withdrawn from your security deposit. These deductions can include:
- Any damage to the property beyond typical wear and tear
- Unpaid rent you still owe
- Unpaid rent from moving out before the rental period ended (if your lease ends in August but you move out in July, you’ll still owe for August). This doesn’t apply if you moved out due to the landlord violating the terms of the lease
- The costs of water and sewer services
- Bills you owed that become a lien against the property
- The costs of re-renting the apartment if you breach your lease. This can include reasonable real estate broker costs
These deductions must be itemized, listed, and presented to you in writing. The landlord needs to note a description of the damage, the cost to replace or repair that damage, and the amount they’ll deduct from the security deposit to compensate for it. If a landlord fails to do this, they aren’t legally allowed to keep any portion of your security deposit.
How to get your security deposit back in Indiana
It’s rare in any state for a tenant to get their full security deposit back after a lease is up, but here are a few tips to help you maximize what portion of your security deposit you do see again:
- Avoid damages at all costs and repair anything you break
- Keep the apartment as clean as possible and avoid ruining carpets with spills. If you do spill something, take measures to clean it up before it stains
- After you’ve moved your belongings out, clean the empty apartment thoroughly, right down to cleaning windows. Don’t go overboard of course, but be careful to not leave a big mess behind either
- Take photos of the apartment before you pack up and then again after you’ve moved everything out, preferably with time and date stamps
- Present your landlord with a mailing address in writing and retain a copy of that notice for yourself, too
After you’ve given your mailing address and vacated the premises, give your now-former landlord 45 days to give you back your security deposit, along with the itemized list of their deductions.
Remember, landlords are required by law to return your full security deposit unless they present you with an itemized list of deductions, and they aren’t allowed to deduct for regular wear and tear. Review your lease to make sure all of their deductions are allowed under the terms you signed off on in the lease.
If you haven’t heard back after 45 days, send the landlord a written request for your security deposit to be refunded to you. Keep the letter polite and professional. If they refuse to refund the security deposit or fail to provide you with their list of deductions, you can attempt to seek mediation through
Indiana’s small claims courts
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How to save money on car and renters insurance in Indiana
Most of the people who rent apartments never take the time to learn about their rights as tenants until it’s too late. Likewise, few people take the time to read and fully comprehend their leases. You can’t really fault them for it either. Not everyone can digest the intentionally obfuscated legalese their leases are penned in.
Another thing renters tend to skip is insurance, and that’s another huge mistake. Losing all of your belongings to an apartment fire or a break-in is devastating, and avoiding it barely costs more than a video streaming subscription.
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FAQs
How long does a landlord have to return a security deposit in Indiana?
Landlords in Indiana have 45 days to return your security deposit, minus any withholdings they legally keep for restitution or repairs.
What should I include in an Indiana security deposit demand letter?
Maintain a polite and professional tone, and keep your security deposit demand letter short and sweet. Include relevant information. You might write something like this:
I, (your name), am writing to formally request the return of my security deposit. I moved out of the apartment at (address) on the date of (date), and submitted a formal notice of my new address on (date). It has now been forty-five (45) days, and I have not heard back. I would like to resolve this issue amicably without requiring further action. Please respond by returning my security deposit. The address again is (address). Sincerely, (your name).
If ten days goes by and you never get a response, consider filing in small claims court and seeking mediation help.
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