Indiana Security Deposit Demand Letter

Introduction

Key Things to Know

1. 1

   A security deposit demand letter is a written demand an Indiana tenant sends a former landlord to recover a deposit withheld past the state deadline, before taking the landlord to small claims court.

2. 2

   The landlord must return the deposit, less any itemized deductions, no later than 45 days after termination of the rental agreement and delivery of possession (Indiana Code 32-31-3-12(a)).

3. 3

   The landlord must mail a written itemized list of the damages claimed against the deposit within 45 days after the termination of occupancy, with the estimated cost of repair for each item (IC 32-31-3-14).

4. 4

   If the landlord fails to mail that itemized list within 45 days, the landlord is deemed to agree that no damages are due and must immediately remit the full security deposit (IC 32-31-3-15).

5. 5

   If the landlord fails to return the deposit due, the tenant may recover all of the security deposit due plus reasonable attorney's fees; Indiana has no two or three times statutory multiplier (IC 32-31-3-12(b)).

6. 6

   A deposit may be used only for actual damage that is not ordinary wear and tear, for unpaid or early-termination rent, for the last rental period if the written agreement so provides, and for unpaid utility or sewer charges (IC 32-31-3-13).

7. 7

   If the demand is ignored, an Indiana tenant can sue in small claims court, where the claim limit is $10,000 (IC 33-29-2-4).

Indiana Requirements for Security Deposit Demand Letter

• 45-Day Return Deadline

  In Indiana the landlord must return the deposit, less any itemized deductions, no later than 45 days after termination of the rental agreement and delivery of possession (Indiana Code 32-31-3-12(a)). Your demand letter should state that this deadline has passed.

• Itemized List of Damages Within 45 Days

  An Indiana landlord who keeps any part of the deposit must mail the tenant a written itemized list of the damages claimed within 45 days after termination of occupancy, stating the estimated cost of repair for each item and enclosing a check for the balance (Indiana Code 32-31-3-14).

• Missing Notice Means the Full Deposit Is Due

  If the landlord fails to mail the itemized list of damages within 45 days, the landlord is deemed to agree that no damages are due and must immediately remit the full security deposit (Indiana Code 32-31-3-15). A late or missing itemized list defeats the deductions.

• Full Deposit Plus Attorney's Fees, No Multiplier

  If a landlord fails to return the deposit due, an Indiana tenant may recover all of the security deposit due plus reasonable attorney's fees (Indiana Code 32-31-3-12(b)). Indiana has no two or three times statutory multiplier, but the deposit and fees can exceed the amount withheld.

• Permitted Uses of the Deposit

  An Indiana deposit may be used only for actual damage that is not ordinary wear and tear, for rent in arrears or rent owed for early termination, for the last rental period if the written agreement so provides, and for unpaid utility or sewer charges that are the tenant's obligation (Indiana Code 32-31-3-13).

• No Deduction for Ordinary Wear and Tear

  A security deposit may be used only for actual damage that is not the result of ordinary wear and tear (Indiana Code 32-31-3-13). Charges for normal use, such as worn carpet or faded paint, are not a permitted basis to keep the deposit and can be disputed.

• Send With Proof of Delivery and a Forwarding Address

  Send the demand to the landlord's address using a trackable method such as certified mail with return receipt, and provide your forwarding address so the landlord cannot claim it lacked one. Keep a copy of the letter and the delivery record for a later small claims filing.

• Small Claims Limit

  If the demand is ignored, an Indiana tenant may sue in small claims court, where the claim limit is $10,000 (Indiana Code 33-29-2-4). Filing promptly after the demand deadline passes is the practical course.