How do I dispute a security deposit return in Indiana?

Indiana Code Article 32-31, Chapter 3 governs residential security deposits.

1. No Statutory Cap

Indiana does not statutorily cap the deposit amount; the lease controls. Market practice is typically 1–2 months' rent.

2. 45-Day Return Rule

Within 45 days after termination and surrender of possession, the landlord must mail to the tenant's last known address an itemized written notice describing any damages and the cost of repair, along with any refund balance (IC 32-31-3-14).

3. Forfeiture for Failure to Itemize

If the landlord fails to provide the itemized notice within 45 days, the landlord forfeits the right to retain any portion of the deposit and the tenant is entitled to the full refund (IC 32-31-3-12).

4. Allowed vs. Prohibited Deductions

Permitted: unpaid rent, accrued utility charges, damages exceeding ordinary wear and tear, and other contractually agreed amounts (IC 32-31-3-13). Prohibited: ordinary wear and tear, routine cleaning, repainting after long tenancies.

5. Attorney's Fees Recoverable

In an action to recover wrongfully withheld deposits, the tenant may recover the deposit plus reasonable attorney's fees (IC 32-31-3-12(b)).

6. Small Claims & Limitations

File in Indiana small claims court (up to $10,000 in most counties, $8,000 in Marion County). The statute of limitations is 6 years for written contracts (IC 34-11-2-9), but 10 years for written contracts for the payment of money (IC 34-11-2-11).

This is legal information, not legal advice.