| Quick Facts | Answer |
| Acceptable Deductions | Unpaid rent and utilities
Rent due as a result of early termination Costs of damage Damages due to a breach of lease Damages due to a violation of law |
| Return Deadline | 45 days |
| Itemized Deductions | Required |
| Penalty for Late Return | Amount of the security deposit + court costs + attorneys’ fees |
For laws on security deposit collections and holdings in Indiana, click here.
Some cities and counties may have regulations which are different from those presented here. Always check local laws.
Security Deposit Deductions in Indiana
In Indiana, the following can be deducted from security deposits:
- Unpaid rent and utilities
- Rent due as a result of early termination
- Costs of damage excluding normal wear and tear
- Monetary damage as a result of a breach of the lease or violation of the law
Most states, including Indiana, do not have a legal limit on how much a landlord can charge for damages except that the charges must be reasonable and reflective of actual expenses.
If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant, unless they fail to uphold their responsibilities regarding the return of the security deposit.
What is Considered Normal Wear and Tear in Indiana?
Indiana case law defines “ordinary wear and tear” in the following way:
Ordinary wear and tear refers to the gradual deterioration of the condition of an object which results from its appropriate use over time. We do not agree… that the accumulation of dirt constitutes ordinary wear and tear. Objects which have accumulated dirt and which require cleaning have not gradually deteriorated due to wear and tear. Rather, such objects have been damaged by dirt, although they are usually capable of being returned to a clean condition.
Examples of ordinary wear and tear include:
- Gently worn carpets
- Lightly scratched glass
- Faded paint and flooring
- Loose door handles
- Stained bath fixtures
“Damage” means destruction to the rental unit that occurs because of abuse or negligence by a tenant during the course of the tenancy.
Examples include:
- Heavily stained, burned, or torn carpets
- Accumulation of dirt and debris
- Broken tiles or windows
- Holes in the wall
- Missing fixtures
Can the Landlord Charge for Replacing the Carpet in Indiana?
Landlords can charge for replacing the carpet if it is damaged beyond normal wear and tear.
A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.
Can the Landlord Charge for Nail Holes in Indiana?
Indiana landlords can charge a tenant for nail holes if they damage the walls in a way that doesn’t demonstrate an ordinary and reasonable level of care.
Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.
However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage, and thus chargeable to the tenant.
Can the Landlord Charge a Cleaning Fee in Indiana?
Landlords in Indiana can charge a cleaning fee if it is specifically stated in the lease agreement and the cleaning fee is reasonable.
Landlords cannot charge for cleaning done as a result of normal wear and tear. However, landlords can include provisions in the lease agreement that require tenants to clean the rental unit to return it to its original condition. If the tenant fails to clean the rental unit as described in the lease, the landlord can charge for cleaning.
Can the Landlord Charge for Painting in Indiana?
Indiana landlords can charge for painting, except for normal wear and tear. For example, a landlord might be able to charge for:
- Damage to the paint beyond normal wear and tear
- Tenant repainting without the landlord’s consent
- Tenant repainting with consent, but not doing the work to a professional standard
Normal paint wear includes:
- Minor scrapes from daily use
- Fading due to sunlight
- Minor cracks in the original paint.
Landlords can charge for repainting if the damage is not the result of ordinary care. This includes stains, large or deep scratches, and water damage.
Security Deposit Returns in Indiana
Landlords must return a security deposit as a check or money order within 45 days from the date the tenant vacates the rental unit with an itemized list of damages (if any).
How Long Do Landlords Have to Return Security Deposits in Indiana?
Indiana landlords have 45 days after the tenant moves out to return any unused portion of the security deposit.
Do Landlords Owe Interest on Security Deposits in Indiana?
Unlike in some states, such as New Jersey, landlords in Indiana do not owe interest on security deposits.
How Do Landlords Give Notice in Indiana?
If deductions are to be made from the security deposit, an itemized list of deductions must be sent by mail to the tenant’s forwarding address. The notice must include estimated costs of the damage and the amount deducted by the landlord.
Can a Security Deposit Be Used for Last Month’s Rent in Indiana?
In Indiana, a tenant is not entitled to apply the security deposit toward rent. However, the law allows landlords to deduct any unpaid rent from the security deposit.
Landlords can include a provision in the lease agreement that the security deposit cannot be used for the last month’s rent until the tenant vacates the rental unit.
Security Deposit Disputes in Indiana
If landlords do not return the security deposit or provide a written statement of deductions, if any, within the required time period, tenants can file for damages in court up to the amount of the security deposit plus court costs and reasonable attorney fees.
Tenants can also take legal action against a landlord for unreasonable deductions.
How Can Tenants File a Dispute for a Security Deposit in Indiana?
If a landlord fails to perform their obligations regarding a security deposit, the tenant can file a dispute in Small Claims Court if the amount of damages is less than $10,000. If the amount is greater, the tenant must file a civil case in the Circuit Court.
A small claims case regarding the return of a security deposit must be filed within 6 years.
Cases are filed in the Small Claims Court where the property is located or where the defendant lives or works. An attorney is not required but permitted. Filing fees vary by court but are typically $87 to $104.
Sources
- 1 Ind. Code § 32-31-3-12
-
(a) Upon termination of a rental agreement, a landlord shall return to the tenant the security deposit minus any amount applied to:
(1) the payment of accrued rent;
(2) the amount of damages that the landlord has suffered or will reasonably suffer by reason of the tenant’s noncompliance with law or the rental agreement; and
(3) unpaid utility or sewer charges that the tenant is obligated to pay under the rental agreement;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. Unless otherwise agreed, a tenant is not entitled to apply a security deposit to rent.
(b) If a landlord fails to comply with subsection (a), a tenant may recover all of the security deposit due the tenant and reasonable attorney’s fees.
(c) This section does not preclude the landlord or tenant from recovering other damages to which either is entitled.
(d) The owner of the dwelling unit at the time of the termination of the rental agreement is bound by this section.
Source Link - 2 Ind. Code § 32-31-3-15
-
Failure by a landlord to provide notice of damages under section 14 of this chapter constitutes agreement by the landlord that no damages are due, and the landlord must remit to the tenant immediately the full security deposit.
Source Link
- 3 Miller v. Geels, 643 N.E.2d 922, 927 (Ind. Ct. App. 1995)
-
[O]rdinary wear and tear refers to the gradual deterioration of the condition of an object which results from its appropriate use over time. We do not agree… that the accumulation of dirt constitutes ordinary wear and tear. Objects which have accumulated dirt and which require cleaning have not gradually deteriorated due to wear and tear. Rather, such objects have been damaged by dirt, although they are usually capable of being returned to a clean condition.
Source Link - 4 Ind. Code § 32-31-3-14
-
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.The landlord shall include with the list a check or money order for the difference between the damages claimed and the amount of the security deposit held by the landlord.
Source Link - 5 Ind. Code § 33-28-3-4(b)
-
(b) The small claims docket has jurisdiction over the following:(1) Civil actions in which the amount sought or value of the property sought to be recovered is not more than ten thousand dollars ($10,000). The plaintiff in a statement of claim or the defendant in a counterclaim may waive the excess of any claim that exceeds ten thousand dollars ($10,000) in order to bring it within the jurisdiction of the small claims docket.(2) Possessory actions between landlord and tenant in which the rent due at the time the action is filed does not exceed ten thousand dollars ($10,000).(3) Emergency possessory actions between a landlord and tenant under IC 32-31-6.
Source Link - 6 Ind. Code § 34-11-2-7
-
The following actions must be commenced within six (6) years after the cause of action accrues:
(1) Actions on accounts and contracts not in writing.
(2) Actions for use, rents, and profits of real property.
(3) Actions for injuries to property other than personal property, damages for detention of personal property and for recovering possession of personal property.
(4) Actions for relief against frauds.
Source Link
