Indiana security deposit account for landlords
Easily collect and manage deposits for every property with dedicated security deposit accounts.
Why use a security deposit account in {{ state }}
Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.
Benefits for property
owners
Repair and maintenance
Covers property damage such as paint, carpet, or floor damage, including costs caused by pets.
Fund separation
Meet state requirements for holding deposits in a dedicated tenant security deposit account.
Streamlined returns
Simplifies refunding tenants while accounting for deductions like cleaning or unpaid utilities.
Benefits for tenants
Fair protection
Funds are protected from misuse, covering only actual repair costs like cleaning, carpet replacement, or floor damage.
Transparency on deductions
Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
Savings potential
Deposits may be held in a tenant security deposit account or rental deposit account that earns security deposit interest, helping tenants recover more than they put in.
{{ state }} security deposit account
You can keep tenant’s security deposit in Indiana in whichever account you prefer as there’s no requirement to hold these funds in an dedicated escrow security deposit bank account in Indiana.
{{ state }} security deposit
limits
There’s no limit on maximum security deposit in Indiana. You can charge 1 to 2 months’ rent that align with average security deposit in the state.
{{ state }} security deposit interest
Interest on security deposit in Indiana isn’t required as per the state law security deposit rules. You can choose to pay security deposit interest rate to tenants if you keep these funds in an interest-bearing account, but there are no legal guidelines.
Go beyond standard security deposit accounts
Collect, return, and track deposits by tenant and
property, even when funds are held in external accounts.
{{ state }} security deposit accounts
Hold each security deposit in separate non-interest or interest-bearing accounts that earn up to [v="apyvalue"] APY².
Unlimited accounts for all entities
Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.
Free online payments
Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.
Automated bookkeeping
Track and tag payments to the right tenant and property — automatically.
Essentials for every door
Everything you need for every part of the rental process.
Lease creation and e-sign
Upload or create and e-sign state-specific leases online.
Free tenant screening
Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.
Property-specific accounts
Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.
{{ state }} security deposit rules
No legal cap. But, it’s recommended to charge 1 to 2 months’ rent
No
No security deposit escrow account required. But, you should keep funds separate for clear bookkeeping and make refund process easier.
Unpaid rent, damages beyond normal wear and tear, and other agreed-upon charges.
45 days
Additional resources
ARTICLE
How to collect security deposits
FAQs
How much security deposit can a landlord charge in Indiana?
There is no legal Indiana security deposit limit. So, you can charge whatever amount you prefer along with first and last month’s rent. However, it’s recommended to charge a reasonable amount between 1 to 2 months’ rent.
Is interest required on tenant security deposits in Indiana?
No, paying the Indiana security deposit interest is not required. You also aren't legally required to use a specific landlord-tenant security deposit bank account in Indiana; you can hold the funds in whatever account works best for your business.
How should I issue a security deposit receipt to tenants in Indiana?
Indiana law doesn’t require you to provide a security deposit receipt, but it is a great to do so. Use a clear document and add the date of the deposit, amount paid, and what it was for. This keeps things professional and prevents any confusion later on.
How many days to return a security deposit in Indiana?
You have 45 days to return a tenant’s security deposit in Indiana. This countdown starts once the lease ends and the tenant gives you their new forwarding address in writing. If they don't give you an address, your 45-day clock is "on hold" until they do.
What can a landlord deduct from a security deposit Indiana?
As power landlord rights security deposit, you can use deposits to cover any unpaid rent, utility bills, or damages that go beyond "normal wear and tear." Make sure to give tenants a written, itemized list of every deduction within 45 days. If you fail to follow these rules or withhold money wrongly, a court could order you to pay double damages plus the tenant’s legal fees.
Can a security deposit be used for unpaid rent in Indiana?
Yes, you can use the funds in the security deposit to cover any rent the tenant still owes you when they move out. Just make sure the unpaid amount is clearly listed on your itemized deduction statement.
Can landlords keep a security deposit for breaking a lease in Indiana?
If a tenant is breaking lease terms by moving out early, you can use the landlord security deposit in Indiana to cover your losses, such as the rent you lose while looking for a new tenant. But, make sure to make a "reasonable effort" to find a new renter as soon as possible to minimize those costs.
