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How to Hold and Return a Security Deposit in Indiana


Managing a Security Deposit in Indiana

In Indiana, there is no legal limit on the amount that you may charge as a security deposit. The standard security deposit amount is equal to one month's rent.

Storing the Deposit

Indiana law does not offer any guidance on how to store a security deposit. Many people opt to keep it in a bank account separate from their personal finances.

Returning the Deposit

You must return your subtenant's security deposit within 45 days of the end of the sublease. You can use the security deposit to cover any unpaid rent or utility bills at the end of the sublease or to cover the cost of any damages to the unit that exceed normal wear and tear. If you plan to keep any of the security deposit, you must provide an itemized list of the deductions detailing how much is to be withheld and why. You are not required to do any of this, however, until your subtenant supplies you, in writing, with a mailing address where you can send the security deposit. If you don't follow these instructions, you may lose your right to withhold any of the security deposit or your subtenant can take you to court for the total sum of the security deposit plus attorney's fees.

The information provided on this website does not, and is not intended to, constitute legal advice.