Indiana security deposit laws are detailed under the Indiana Code (IC 32-31-3). These laws provide clear guidelines on how landlords must handle security deposits, ensuring both landlords and tenants are aware of their rights and responsibilities under Indiana law. Please note that rules and regulations may vary by municipality.
Indiana law does not specify a maximum amount that can be charged for a security deposit. Landlords have discretion over the amount, but it typically ranges from one to two months' rent.
Indiana law does not require landlords to hold the security deposit in a separate, interest-bearing account. The landlord may commingle the security deposit with their own funds.
There are no required notifications regarding where a security deposit is held.
Indiana law does not require landlords to pay interest on security deposits, even if the deposit is held in an interest-bearing account.
Landlords must return the security deposit within 45 days after the tenant vacates the rental unit and terminates the lease. The landlord must also provide an itemized list of any deductions made from the deposit within this period.
The landlord must provide the tenant with an itemized list of deductions and the remaining balance of the deposit, if any, within the 45-day period.
If a resolution cannot be reached, the tenant may choose to file a claim in small claims court to recover the disputed amount of the deposit. In Indiana, this type of dispute is typically handled in small claims court, which is designed to be accessible without needing a lawyer.
Indiana landlords can make deductions from the security deposit for the following reasons:
If the landlord fails to return the security deposit or provide an itemized list of deductions within the 45-day period, the tenant may take legal action to recover the deposit. The tenant may be entitled to recover the full amount of the deposit plus court costs and attorney fees.
Additionally, the landlord forfeits the right to withhold any portion of the deposit if the statutory procedures are not followed.
Tenant's Failure to Provide a Forwarding Address: The landlord is not required to return the security deposit or provide an itemized list of deductions until the tenant provides a forwarding address in writing.
Transfer of Property Ownership: If the property is sold or ownership is transferred, the new owner is responsible for the security deposit and must honor the terms of the original lease agreement regarding the return of the deposit.
DISCLAIMER: Security deposit laws may vary by county or municipality. The information provided by Build Whale, Inc. is for general informational purposes only and should not be construed as legal advice. It is not a substitute for consultation with a qualified attorney. While we strive to provide accurate and up-to-date information, Build Whale, Inc. makes no guarantees or warranties regarding the accuracy, completeness, or reliability of the information presented.