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State law · statute quotes

Indiana security deposit laws for landlords and property managers

The words of Indiana's security deposit statute on each topic, quoted verbatim with pinpoint citations and links to the official source. No summaries, no interpretation.

Reviewed by Mark Shvaya, licensed California real estate broker (DRE #02243502), who uses ProFlow360 in a rental portfolio Mark manages

Last reviewed

Quoted on this page

  • Deposit limit
  • Returning the deposit
  • Itemized statement
  • Inspections and condition reports
  • Photographs
  • Normal wear and tear
  • Interest
  • Wrongful withholding

Ind. Code §§ 32-31-3-12 to 32-31-3-16

On this page
  1. Returning the deposit
  2. Itemized statement
  3. Normal wear and tear
  4. Wrongful withholding
  5. Recent changes
  6. Documenting a tenancy
  7. Nearby states
  8. Sources

What this page covers

Indiana's residential security deposit provisions quoted here come from Ind. Code §§ 32-31-3-12 to 32-31-3-16. Below are the statute's own words on 4 topics, each with a pinpoint citation and a link to the official text. This page does not summarize or interpret the law.

What does Indiana law say about returning the deposit?

all as itemized by the landlord with the amount due in a written notice that is delivered to the tenant not more than forty-five (45) days after termination of the rental agreement and delivery of possession. The landlord is not liable under this chapter until the tenant supplies the landlord in writing with a mailing address to which to deliver the notice and amount prescribed by this subsection.
Ind. Code § 32-31-3-12(a)Official source

What does Indiana law say about an itemized statement of deductions?

Sec. 14. Not more than forty-five (45) days after the termination of occupancy, a landlord shall mail to a tenant an itemized list of damages claimed for which the security deposit may be used under section 13 of this chapter. The list must set forth: (1) the estimated cost of repair for each damaged item; and (2) the amounts and lease on which the landlord intends to assess the tenant.
Ind. Code § 32-31-3-14Official source

How does Indiana law refer to normal wear and tear?

(1) To reimburse the landlord for actual damages to the rental unit or any ancillary facility that are not the result of ordinary wear and tear.
Ind. Code § 32-31-3-13(1)Official source

What does Indiana law say about wrongful withholding?

Sec. 16. A landlord who fails to comply with sections 14 and 15 of this chapter is liable to the tenant in an amount equal to the part of the deposit withheld by the landlord plus reasonable attorney's fees and court costs.
Ind. Code §§ 32-31-3-12(b), -16Official source

Not quoted on this page

deposit limit, inspections and condition reports, photographs, interest. That does not mean Indiana law is silent on them; other sections or local rules may apply. Read the full statute.

Has Indiana's security deposit law changed recently?

From our review of the official history notes: All quoted sections show 'As added by P.L.2-2002, SEC.16.' with no later amendment in the Indiana Code 2026 PDF.

How does ProFlow360 help you document a Indiana tenancy?

ProFlow360 records and organizes inspection evidence; it does not tell you what the statute requires or allows. What it records, for any state:

  • Move-in, routine, pre-move-out and move-out inspections with photos timestamped at capture.
  • Each move-out photo beside its move-in match, filed under the tenancy.
  • Itemized lines with your classification, the amount you entered, and the estimate or invoice attached.
  • An issued record that is sealed, shared by a link that expires and can be revoked.

Do this in ProFlow360

Keep the photos, the call and the invoice on the same line

Every deduction line carries the move-in and move-out photos, your classification and its documents, so the record can be followed by someone who was not there.

Kitchen · counter burn, left of range

Line 2 of 5 · TEN-0418

$180.00
1
MI-21 · Jul 12, 2024
MO-29 · Sep 30, 2026
2
Tenant damageAvery Chen · Oct 2, 2026
3
Amount you entered$180.00 · from estimate
4
Ridgeline estimate.pdfInvoice 2291.pdf
5
Move-inPeriodicMove-outClassifiedIssued

Security deposit statutes in nearby states

Sources

Start documenting condition properly

Create an account and run your next inspection with the evidence trail already in place. No card required to start.