IC 32-31-3-12: Indiana security deposit rules in plain English
What IC 32-31-3-12 says about Indiana security deposits: the cap, the deadline to return the deposit, itemized deductions and interest. Every fact below comes from our statute-checked data. Last verified 2026-10-22.
Quick answer
- Return deadline
- 45 days
- Counted from when the lease ends and you hand back possession. The landlord isn't liable for missing the deadline until you give a mailing address in writing, so send it when you move out.
- If the landlord misses the 45 days, they are treated as agreeing no damages are owed and must return the full deposit, plus your attorney's fees and court costs if you sue.
- Maximum deposit
- No statutory cap on the amount of a security deposit found in IC 32-31-3. The term includes required prepayment of rent beyond the first full rental period and other refundable amounts (IC 32-31-3-9). A deposit may be used only for actual damage beyond ordinary wear and tear, unpaid rent (including rent due for premature termination), last month's rent if agreed in writing, and unpaid utility or sewer charges the tenant owed under the lease (IC 32-31-3-13).
- Itemized list
- Yes, an itemized list of deductions is required
- Interest
- No interest or separate-account requirement found in IC 32-31-3.
What IC 32-31-3-12 says, as we verified it
Deposit limit
No statutory cap on the amount of a security deposit found in IC 32-31-3. The term includes required prepayment of rent beyond the first full rental period and other refundable amounts (IC 32-31-3-9). A deposit may be used only for actual damage beyond ordinary wear and tear, unpaid rent (including rent due for premature termination), last month's rent if agreed in writing, and unpaid utility or sewer charges the tenant owed under the lease (IC 32-31-3-13).
Interest
No interest or separate-account requirement found in IC 32-31-3.
Full citation: IC 32-31-3-9, 3-12, 3-13, 3-14, 3-15, 3-16 Read the official text
Indiana deposit deadline calculatorAll Indiana tenant law rulesDeposit return deadline by stateDeposit statutes for every state
FAQ: IC 32-31-3-12
How long does a landlord have to return a deposit under IC 32-31-3-12?
Under IC 32-31-3-12, a Indiana landlord has 45 days to return the security deposit or send an itemized list of deductions. Counted from when the lease ends and you hand back possession. The landlord isn't liable for missing the deadline until you give a mailing address in writing, so send it when you move out. If the landlord misses the 45 days, they are treated as agreeing no damages are owed and must return the full deposit, plus your attorney's fees and court costs if you sue.
Is there a limit on the security deposit in Indiana?
No statutory cap on the amount of a security deposit found in IC 32-31-3. The term includes required prepayment of rent beyond the first full rental period and other refundable amounts (IC 32-31-3-9). A deposit may be used only for actual damage beyond ordinary wear and tear, unpaid rent (including rent due for premature termination), last month's rent if agreed in writing, and unpaid utility or sewer charges the tenant owed under the lease (IC 32-31-3-13).
Does Indiana require an itemized list of deductions?
Yes, an itemized list of deductions is required. Citation: IC 32-31-3-9, 3-12, 3-13, 3-14, 3-15, 3-16.
Does the landlord have to pay interest on the deposit in Indiana?
No interest or separate-account requirement found in IC 32-31-3.
Check your lease against Indiana law
Scan it free and see which clauses break these rules.
Scan my Indiana leaseGeneral information only, not legal advice. Last verified 2026-10-22. Laws change; verify with the linked source or a licensed attorney.