No cap, a closed list of uses
Indiana does not limit the size of a deposit, but IC 32-31-3-13 lists the only things it can be used for:
- actual damage beyond ordinary wear and tear;
- rent in arrears, and rent due because you ended the lease early;
- the last rent payment, but only if a written agreement says the deposit will serve as the last payment;
- unpaid utility or sewer charges you owed under the lease that the landlord paid.
Unless you and the landlord agree otherwise, you may not apply the deposit to rent yourself (IC 32-31-3-12(a)).
The 45-day itemized notice
Within 45 days after the tenancy ends and you deliver possession, the landlord must deliver a written notice itemizing any amounts it kept, along with the amount due to you (IC 32-31-3-12). The damage list must give the estimated cost of repair for each damaged item, and the landlord must include a check or money order for the difference (IC 32-31-3-14).
Silence means no damages
Under IC 32-31-3-15, failing to provide the notice of damages "constitutes agreement by the landlord that no damages are due," and the landlord must return the full deposit immediately. A landlord that fails to comply with sections 14 and 15 owes you the part of the deposit it withheld plus reasonable attorney's fees and court costs (IC 32-31-3-16). There is no double or treble multiplier. Our calculator counts the 45 days.
Steps to recover an Indiana deposit
- Document the unit's condition at move-in and move-out.
- Send your mailing address in writing.
- Count 45 days from termination and delivery of possession.
- If no itemized notice arrives, demand the full deposit, citing IC 32-31-3-15 and -16.
- If that fails, file a claim in small claims court.
Neighboring states
Ohio also has no cap, but sets 30 days and doubles the recovery. Michigan and Illinois have stricter processes.
Frequently asked questions
Is there a cap on security deposits in Indiana?
No. IC 32-31-3 does not limit the amount.
How long does an Indiana landlord have to return a deposit?
45 days after the tenancy ends and you deliver possession, with an itemized notice of any damages.
What happens if the landlord sends no itemized notice?
The landlord is treated as agreeing that no damages are due and must return the full deposit immediately (IC 32-31-3-15).
What can I recover in Indiana?
The amount withheld plus reasonable attorney's fees and court costs (IC 32-31-3-16). There is no multiplier.
Sources
Last reviewed Oct 17, 2026. Read how we verify. Found an error? Tell us.