Indiana law requires landlords to return security deposits or provide an itemized accounting within 45 days of a tenant moving out. You can deduct unpaid rent and damage beyond normal wear and tear, but not routine maintenance or carpet cleaning. Missing the deadline means you might pay the tenant's attorney fees.
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The moment a tenant hands back the keys, a clock starts ticking, and in Indiana, you've only got 45 days to get the security deposit right. Miss it, and it can cost you more than the deposit itself. Here's exactly what every Indianapolis owner needs to understand. Here's the part that catches owners off guard: the 45-day period begins the day the tenant surrenders the unit, not when you finally get around to the inspection, And not when a new tenant moves in. That timeline is already running whether you're ready or not. Not every deduction holds up. You can charge for unpaid rent, real damage beyond normal wear and tear, and unpaid utilities the tenant owed. But routine maintenance, ordinary wear, repainting, and general carpet cleaning? Those are off the table, and every charge you do make needs documentation to back it up. Some owners assume they can write their way around this with a lease clause extending the timeline or automatically applying the deposit to last month's rent. Under Indiana law, that language simply doesn't hold up unless the lease explicitly spells it out. The safest move? Get that forwarding address in writing the day they leave. Start your inspection right away and keep every receipt, photo, and invoice. Because if that 45-day window closes, You don't just lose the deduction, you could end up covering the tenant's attorney fees too. If you'd rather not track every deadline yourself, that's exactly what we do. Resolute RDM handles move-out inspections, itemized deposit accounting, and every compliance step in between for owners across Greater Indianapolis. Reach out, and let's make sure your next move-out is stress-free.
