How Long Does a Landlord Have to Return a Security Deposit in Indiana?

In Indiana, a landlord generally has no more than 45 days after the rental agreement ends and the tenant gives up possession to send the tenant the security deposit balance, along with a written itemization of permitted deductions. Indiana law also requires the tenant to provide a mailing address before the landlord becomes liable under the security-deposit statute.

This deadline comes from Indiana Code § 32-31-3-12. The rules also explain what a landlord may deduct, what the itemized notice should contain, and what can happen if the landlord does not follow the required procedure.

Last reviewed: September 2026. This article is general legal information, not legal advice. Rental agreements and individual situations can involve additional rules.

Indiana Security Deposit Return Deadline

Indiana Code § 32-31-3-12 requires a landlord to return the security deposit, minus legally permitted deductions, with a written notice of the deductions delivered to the tenant not more than 45 days after termination of the rental agreement and delivery of possession.

The law does not simply say that the landlord has 45 days to decide what to do. The required notice must identify the amount due and itemize the deductions being claimed.

Question	Indiana rule
Return deadline	No more than 45 days after termination and delivery of possession
What if money is withheld?	The landlord must provide a written itemization
Forwarding address	The tenant must provide a mailing address in writing
Permitted deductions	Certain unpaid rent, qualifying damages, and qualifying utility or sewer charges

Indiana’s official code is maintained by the Indiana General Assembly. The relevant security-deposit provisions are in Title 32, Article 31, Chapter 3. You can also browse our Indiana state laws hub for other Indiana legal topics.

When Does the 45-Day Clock Start?

The statute ties the deadline to two events: termination of the rental agreement and delivery of possession. In practical terms, this means the landlord needs to know that the tenancy has ended and that the tenant has returned possession of the rental unit.

Tenants should also provide their forwarding or mailing address in writing. Indiana Code § 32-31-3-12 says the landlord is not liable under that section until the tenant supplies a mailing address to which the required notice and amount can be delivered.

What Can an Indiana Landlord Deduct From a Security Deposit?

Indiana law limits the purposes for which a security deposit may be used. Under Indiana Code § 32-31-3-13, permitted uses include certain actual damages that are not ordinary wear and tear, unpaid rent covered by the statute, and qualifying unpaid utility or sewer charges.

• Unpaid rent: A deposit may be used for qualifying rent that remains unpaid.
• Damage beyond ordinary wear and tear: A landlord may use the deposit for actual qualifying damage to the rental unit or an ancillary facility.
• Qualifying utility or sewer charges: The deposit may cover certain charges that are the tenant’s responsibility under the rental agreement and remain unpaid.

Indiana law also permits a written agreement to allow the deposit to be used for the final rental payment in certain circumstances. A landlord cannot simply treat every part of a security deposit as extra rent without considering the statutory rules and the rental agreement.

What Counts as Normal Wear and Tear?

A security deposit is not automatically available to pay for every change that occurs during a tenancy. Indiana’s security-deposit statute specifically refers to actual damage that is not the result of ordinary wear and tear.

For example, normal aging of carpeting or minor deterioration from ordinary use may be different from a significant hole, broken fixture, or other damage caused beyond ordinary use. The facts and the condition of the property matter in a particular dispute.

What Must Be Included in the Itemized Deduction Notice?

Indiana Code § 32-31-3-14 requires the landlord to send an itemized list of damages claimed against the security deposit. The list must include the estimated cost of repair for each damaged item and identify the lease provision on which the landlord intends to assess the tenant.

If the landlord is withholding only part of the deposit, the landlord must include the remaining amount with the required notice.

What Happens If a Landlord Misses the Deadline?

Indiana law provides remedies when a landlord does not comply with the security-deposit requirements. Under § 32-31-3-12, a tenant may recover the security deposit due to the tenant and reasonable attorney’s fees when the landlord fails to comply with the required return and notice provisions.

There are also specific rules concerning the notice of damages. Indiana Code § 32-31-3-15 states that failing to provide the required notice of damages constitutes an agreement that no damages are due and requires the landlord to remit the full security deposit.

The precise remedy can depend on what happened, what notices were sent, and whether the statutory requirements were satisfied.

What Should a Tenant Do If the Deposit Has Not Been Returned?

1. Confirm the move-out date. Write down when the rental agreement ended and when possession was returned.
2. Check whether you gave your mailing address. Keep proof that the address was provided to the landlord in writing.
3. Review your lease. Look for provisions concerning the security deposit, cleaning, repairs, utilities, and move-out requirements.
4. Check your records. Keep photographs, move-in and move-out inspection records, receipts, emails, texts, and other relevant documents.
5. Review any deduction notice. Check whether the landlord identified the claimed damages and amounts required by Indiana law.
6. Communicate in writing. If you believe the deposit was improperly withheld, a clear written request can help create a record of the dispute.

Example: When Should an Indiana Tenant Expect the Deposit?

Suppose a tenant’s lease ends on June 30 and the tenant returns possession that day. The tenant also gives the landlord a forwarding address in writing.

The landlord’s statutory deadline is tied to the termination of the rental agreement and delivery of possession. If the landlord claims qualifying deductions, the tenant should receive the required written itemization and the remaining balance within the statutory period.

Can a Tenant Use the Security Deposit as the Last Month’s Rent?

Generally, a tenant should not assume that the security deposit can automatically be used as the final month’s rent. Indiana Code § 32-31-3-12 states that, unless otherwise agreed, a tenant is not entitled to apply a security deposit to rent.

If the lease or a separate written agreement provides otherwise, the terms should be reviewed carefully.

Indiana Security Deposit Checklist

• Keep a copy of the lease and deposit receipt.
• Document the property’s condition when moving in and moving out.
• Give the landlord your forwarding address in writing.
• Keep proof of when possession was returned.
• Save the landlord’s itemized deduction notice.
• Compare deductions with the lease and Indiana law.
• Keep all communications about the deposit.

Frequently Asked Questions

How many days does an Indiana landlord have to return a security deposit?

Indiana law generally requires the landlord to return the deposit, minus permitted deductions, and provide the required written notice within no more than 45 days after termination of the rental agreement and delivery of possession.

Does an Indiana landlord have to itemize deductions?

Yes. When deductions are claimed, Indiana law requires a written notice that itemizes the amount due and the permitted deductions. Additional requirements apply to an itemized list of damages.

Does the tenant have to give a forwarding address?

Yes. Indiana Code § 32-31-3-12 requires the tenant to supply the landlord in writing with a mailing address for the required notice and amount.

Can a landlord keep a deposit for normal wear and tear?

Indiana’s security-deposit statute allows deductions for actual qualifying damage that is not the result of ordinary wear and tear. Whether a particular charge qualifies depends on the facts.

What if the landlord never sends an itemized statement?

Indiana law contains specific consequences for failing to provide the required notice of damages. Depending on the circumstances, the landlord may be required to return the full deposit and may face additional liability.

Indiana Law Sources

• Indiana General Assembly — Indiana Code, Title 32
• Indiana Code § 32-31-3-12 — Return of Deposits
• Indiana Code § 32-31-3-13 — Use of Deposits
• Indiana Code § 32-31-3-14 — Notice of Damages
• Indiana Code § 32-31-3-15 — Full Deposit

Legal information only: This article explains Indiana law in general terms and is not a substitute for advice from a qualified Indiana attorney. Laws and court procedures can change, and the facts of a specific rental dispute may affect the result.