Security Deposit Laws in Indiana
Indiana sets no cap on security deposits, requires return with an itemized list within 45 days after the lease ends and possession is delivered, and requires reasonable written or oral notice before entry.
Last checked . General information, not legal advice.
Indiana at a glance
- Security deposit limit
- No statewide limit
- State law sets no maximum deposit
- Deposit return deadline
- 45 days
- 45 days after termination of the rental agreement and delivery of possession
- Interest on deposits
- Not required by state law
- Some cities have their own interest rules
- Notice before landlord entry
- See the rule
- Reasonable written or oral notice
The rules in Indiana
How much can a landlord charge for a security deposit in Indiana?
Indiana law sets no statewide limit on security deposits, so the amount is set by the lease. Check for local rules where you rent.
How long does a landlord have to return a security deposit in Indiana?
Indiana rule: 45 days after termination of the rental agreement and delivery of possession.
Does a landlord have to pay interest on a security deposit in Indiana?
No. Indiana state law does not require landlords to pay interest on security deposits. Some cities have their own rules.
How much notice must a landlord give before entering a rental in Indiana?
Indiana rule: Reasonable written or oral notice.
Where do the Indiana rules for residential leases come from?
They come from Ind. Code 32-31-3-12 and Ind. Code 32-31-5-6. We last checked them in October 2026. Laws change, so check the current statute before you rely on it.
How Indiana compares
Indiana is one of 21 jurisdictions with no statewide cap. Its 45-day return deadline is longer than the most common deadline of 30 days; 39 jurisdictions require a faster return.
What this means in practice
Landlords: state the deposit amount, where it is held and how it will be returned in the lease, and send the refund with any deductions in writing within the deadline.
Tenants: record the unit's condition with photos and a move-in checklist, keep your receipts, and give the landlord a forwarding address in writing when you move out.
Both sides: normal wear and tear is generally not deductible. Disputes over deductions usually go to small claims court.
General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.