Deposit return deadline · Indiana
Indiana: return the deposit within 45 days
In Indiana, a landlord must return a tenant's security deposit — or account for what's being kept — within 45 days after the rental agreement ends and the tenant delivers possession — but the clock does not start until the tenant gives you a mailing address in writing. The rule is Ind. Code § 32-31-3-12.
Deducting? The paperwork rules
A written notice listing each deduction and the amount due, mailed to the address the tenant supplied. Permitted deductions: unpaid rent, damage beyond normal wear, and unpaid utility or sewer charges the lease makes the tenant's responsibility.
The clean way to do this is a written letter with the deduction list and the ledger behind it — the deposit return letter template produces one, and a current rent ledger is the difference between documenting and reconstructing.
What missing the deadline costs
Miss the 45-day notice and the statute treats it as your agreement that no damages are owed: you must return the entire deposit and you are liable for the tenant's reasonable attorney's fees.
No cap on the deposit amount. The mailing-address trigger cuts both ways — a tenant who never supplies one cannot hold you to the deadline, so collect it at move-out and document that you did.
Never discover this deadline late
The return clock starts the day the tenancy ends — which means it's knowable weeks in advance. A free RentChime account tracks your lease dates and emails you before deadlines like this one arrive.
Not legal advice. This is a summary for general information, not legal advice. The statute linked above is the authority; cities can add stricter rules, and laws change. If a deposit is disputed, talk to a local attorney.
Common questions
When does the 45-day clock start?
Generally when the tenancy ends and the tenant has moved out. The statute linked above defines the trigger precisely.
Can I deduct for normal wear and tear?
No state allows deductions for ordinary wear and tear — deductions are for damage beyond it, unpaid rent, and other charges the lease and statute allow, itemized in writing.
What if I miss the deadline in good faith?
Penalties generally attach to bad-faith withholding, but missing the deadline can forfeit your right to keep any of the deposit even without bad faith. The safe play is the letter, itemized, on time.