Security Deposit Not Returned in Indiana: What Can I Do?
This page covers what a landlord can take out of a security deposit. It covers when the deposit is due back. It covers what you can do in court if it is not returned.
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A landlord may not keep any part of a damage or security deposit unless back rent is due or the home is damaged. The Indiana courts' small claims manual says so.
✓ Sources checked October 3, 2026
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Indiana law lets a landlord take three kinds of amounts out of your deposit. One is unpaid rent. One is a loss the landlord has suffered or will reasonably suffer because you did not follow the law or the rental agreement. One is unpaid utility (water, electric, gas) or sewer charges you owe under the rental agreement. The landlord must list each amount in a written notice. The Court of Appeals quoted this law word for word in Wang v. Sun (2023).
✓ Sources checked October 3, 2026
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A landlord can get a court order for money only for damage beyond normal wear and tear (the wear that comes from everyday use). The Indiana courts' small claims manual says so.
✓ Sources checked October 3, 2026
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The Indiana courts' small claims manual says tenants are expected to leave the home as clean as when they got it. It says the landlord can claim the cost of cleaning to get the home back to that state.
✓ Sources checked October 3, 2026
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Return all keys to your landlord as soon as you move out. The Indiana courts' small claims manual says the landlord may charge additional rent until the keys are returned or the locks are changed. It says the cost of new locks may then be taken out of the security deposit.
✓ Sources checked October 3, 2026
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In Wang v. Sun (2023), the Indiana Court of Appeals quoted the deposit law. When a rental agreement ends, the landlord must return your security deposit minus some amounts. The amounts are rent that has come due and unpaid utility (home service) or sewer charges you owe under the lease. They also include harm the landlord has suffered or will reasonably suffer because you did not follow the law or lease. The landlord must list each amount in a written notice delivered to you. It is due within 45 days after the agreement ends and you hand over the home.
✓ Sources checked October 3, 2026
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In Wang v. Sun (2023), the Indiana Court of Appeals quoted the deposit law. The landlord must return your security deposit minus listed amounts. The landlord must list each amount in a written notice delivered to you within 45 days. The 45 days run after the rental agreement ends and you hand over the home. The court quoted the Indiana Supreme Court: the agreement ends after the tenant gives up the home and the landlord accepts that.
✓ Sources checked October 3, 2026
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In Wang v. Sun (2023), the Indiana Court of Appeals quoted another ruling. Giving up the home (surrender) cannot be done by one party alone. A tenant cannot force a landlord to accept a surrender by acting alone.
✓ Sources checked October 3, 2026
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If you move out before the lease ends, the 45 days may start later. They may not start until the lease ends or the landlord rents the home to someone new. The Court of Appeals quoted an earlier ruling for this in Wang v. Sun (2023).
✓ Sources checked October 3, 2026
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The Indiana courts' Small Claims Manual says a tenant should always give the landlord a forwarding address (where to send mail after you move). Give it in writing and keep a copy.
RenterLaw editorial Indiana Supreme Court, Office of Court Services (Small Claims Manual, updated 12/23/2025) Small Claims Manual, landlord and tenant item 13✓ Sources checked October 3, 2026
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Take before and after photos of the home. Take photos of any damage the landlord claims. The Indiana courts' small claims manual says photos help the court. They show if damage was there when you moved in or was caused by the tenant.
RenterLaw editorial Indiana Supreme Court, Office of Court Services (Small Claims Manual, updated 12/23/2025) Small Claims Manual, landlord and tenant item 11✓ Sources checked October 3, 2026
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If you think your landlord is unfairly keeping your deposit, you may file a claim. You may file a counterclaim (a claim you bring back if your landlord sues you).
✓ Sources checked October 3, 2026
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If a landlord does not follow Indiana's deposit return rule, you may recover all of the security deposit due to you and reasonable attorney's fees. The Court of Appeals quoted this law word for word in Wang v. Sun (2023). You get this money only if you win your case and your landlord pays.
RenterLaw editorial Indiana Court of Appeals, Wang v. Sun, No. 22A-SC-1473 (June 23, 2023) quoting IC 32-31-3-12(b)✓ Sources checked October 3, 2026
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