Security deposit return law in Indiana
In Indiana, a landlord must return the security deposit within 45 days (Indiana Code 32-31-3-9 through 32-31-3-16).
- Return deadline
- 45 days after the tenancy ends
- Deposit cap
- No statewide cap
- Itemized list of deductions
- Required
- If you get it wrong
- If the landlord does not return the deposit with a proper itemized notice under 32-31-3-12(a), the tenant may recover all of the deposit due plus reasonable attorney's fees (IC 32-31-3-12(b)).
- Indiana Code 32-31-3-9 through 32-31-3-16. Verified 2026-09-25.
When the clock starts, and what goes with the money
- Within 45 days after the rental agreement ends and possession is delivered, the landlord must deliver a written notice itemizing any amounts kept for accrued rent, damages from the tenant's noncompliance with the law or the lease, and unpaid utility or sewer charges the tenant owed under the lease (IC 32-31-3-12(a)).
- The itemized damage list must give the estimated repair cost for each damaged item and must come with a check or money order for the difference between the damages claimed and the deposit held (IC 32-31-3-14).
- Deposits may not cover ordinary wear and tear (IC 32-31-3-13).
- The landlord is not liable under the chapter until the tenant gives the landlord a mailing address in writing.
- Unless otherwise agreed, the tenant may not apply the deposit to rent.
How much you can collect
Indiana sets no statewide cap on the size of a residential security deposit. That is not the same as no rules: the holding, itemization, and return duties below still apply in full, and a city or county can set a limit of its own even where the state does not.
What it costs to get this wrong
- If the landlord does not return the deposit with a proper itemized notice under 32-31-3-12(a), the tenant may recover all of the deposit due plus reasonable attorney's fees (IC 32-31-3-12(b)).
- Failing to send the damage notice within 45 days counts as the landlord's agreement that no damages are due, and the full deposit must be returned immediately (IC 32-31-3-15).
- A landlord who violates sections 14 and 15 is liable for the amount withheld plus reasonable attorney's fees and court costs (IC 32-31-3-16).
- There is no double or triple damages multiplier.
Common questions
How long does an Indiana landlord have to return a security deposit?
45 days, under Indiana Code 32-31-3-9 through 32-31-3-16. Within 45 days after the rental agreement ends and possession is delivered, the landlord must deliver a written notice itemizing any amounts kept for accrued rent, damages from the tenant's noncompliance with the law or the lease, and unpaid utility or sewer charges the tenant owed under the lease (IC 32-31-3-12(a)). When the clock starts and what goes back with the money is covered above.
Does Indiana cap the security deposit?
There is no statewide cap in Indiana. A city or county can still set one, and every other deposit rule in Indiana Code 32-31-3-9 through 32-31-3-16 still applies.
What happens if an Indiana landlord misses the deadline or withholds wrongly?
If the landlord does not return the deposit with a proper itemized notice under 32-31-3-12(a), the tenant may recover all of the deposit due plus reasonable attorney's fees (IC 32-31-3-12(b)). The full rule is under "What it costs to get this wrong" above.
The deposit paperwork is the part that gets lost. PropManager keeps the deposit on the lease, the move-out itemization with the tenant's file, and the refund in the ledger, so the record exists before a dispute does.Sources
Indiana Code 32-31-3-9 through 32-31-3-16. Source: https://iga.in.gov/laws/2026/ic/titles/32#32-31-3-12. Verified 2026-09-25.
General information, not legal advice. Check your own lease and any city or county ordinance before you rely on it.