Indiana Security Deposit Return Letter

Date of Letter: [[Date of Letter]]

TO (Tenant Full Name(s)): [[Tenant Full Legal Name(s)]]

Last Known / Forwarding Address: [[Tenant Forwarding Address]]

City, State ZIP: [[City]], Indiana [[ZIP Code]]

FROM (Landlord / Property Manager): [[Landlord or Authorized Agent Full Name]]

Mailing Address: [[Landlord Mailing Address]], [[City]], Indiana [[ZIP Code]]

Phone: [[Landlord Phone]] | Email: [[Landlord Email]]

RE: Security Deposit Accounting and Return, Property at [[Rental Property Full Address]], [[City]], Indiana [[ZIP Code]], -

Indiana Code IC 32-31-3-12 requires that within forty-five (45) days after the termination of a rental agreement and the tenant's vacating of the premises, the landlord must either return the security deposit in full or provide the tenant with an itemized written statement of any deductions together with payment of the remaining balance.

Failure to provide the itemized statement and return any amounts due within the 45-day period forfeits the landlord's right to retain any portion of the deposit. Permissible deductions are limited to: (1) unpaid rent; (2) damage to the premises beyond ordinary wear and tear; and (3) cleaning necessary to return the premises to its condition at the commencement of the tenancy (ordinary wear and tear excepted). There is no statutory cap on the amount of security deposit that may be required in Indiana.

This letter and the attached itemized statement constitute the required accounting., -

Pre-Move-Out Inspection Offer and Record

Prior to your vacating on [[Vacate / Move-Out Date]], a pre-move-out inspection [[Was / Was Not]] offered and conducted on [[Inspection Date or "N/A"]].

• Tenant participated: [[Yes / No]]

• Conditions noted at inspection: [[Summary of noted items or "See attached move-out checklist"]]

• Tenant was given opportunity to remedy: [[Yes / No]]

A copy of any pre-move-out inspection checklist is attached as Exhibit A (if applicable)., -

Move-Out and Deposit Details

Security Deposit Amount Received at Move-In: $[[Security Deposit Amount]]

Date Tenancy Terminated / Keys Returned: [[Termination / Keys Returned Date]]

Date Tenant Vacated Premises: [[Vacate Date]]

Final Inspection Performed By: [[Inspector Name / Landlord]] on [[Inspection Date]], -

Itemized Statement of Deductions

The following deductions are itemized. Supporting receipts, invoices, or estimates for deductions exceeding reasonable documentation thresholds are attached as Exhibit B.

Balance of Deposit Due to Tenant: $[[Balance Amount or 0.00]]

Payment Method: [[Check # [[Check Number]] enclosed / Direct deposit to account ending [[Last4]] on [[Payment Date]] / Mailed certified check]]

Payment / Check Date: [[Date Payment Issued]], -

Tenant Forwarding Address Confirmation

The balance and/or this statement is being sent to the forwarding address you provided:

[[Tenant Forwarding Address]]

[[City]], Indiana [[ZIP Code]]

If this address is incorrect, please notify the landlord in writing immediately at the address above., -

Legal Notice Regarding Timing and Forfeiture

This accounting and any refund are provided within forty-five (45) days of lease termination and vacating, as required by IC 32-31-3-12.

If any portion of the deposit was wrongfully withheld, you may be entitled to recover twice the amount wrongfully withheld plus court costs and reasonable attorneys' fees under IC 32-31-3-13., -

Exhibits Attached

• Exhibit A: Pre-Move-Out Inspection Checklist / Photos (if any)

• Exhibit B: Receipts, Invoices, and Estimates Supporting Deductions

• Exhibit C: Move-In / Move-Out Condition Comparison (if maintained), -

Certification

I certify that the above deductions are for permissible items only, that ordinary wear and tear has not been charged, and that all amounts are supported by documentation where required.

Landlord / Agent Signature: ________________________________ Date: [[Date of Letter]]

Printed Name: [[Landlord or Agent Full Name]]

Title: [[Landlord / Property Manager / Authorized Agent]], -

Tenant Acknowledgment of Receipt (optional, sign and return copy if desired)

I acknowledge receipt of this security deposit return letter and itemized statement (and any attached check).

Tenant Signature: _______________________________ Date: _______

Printed Name: [[Tenant Full Legal Name(s)]], -

Additional Guidance for Landlords and Tenants

Ordinary Wear and Tear vs. Damage

Indiana law prohibits charging tenants for ordinary wear and tear. Examples of ordinary wear and tear include:

• Faded paint or carpet from normal use and sunlight

• Minor scuffs on walls or floors from furniture movement

• Worn but functional door hardware or light fixtures

• Small nail holes from hanging pictures (reasonable number)

Examples of chargeable damage include:

• Large holes in drywall or doors

• Stains or burns on carpet or flooring beyond normal use

• Broken windows, fixtures, or appliances caused by misuse

• Pet damage beyond normal expectations where pets were not authorized

Documentation Best Practices

Landlords should retain:

1. The original move-in condition report signed by tenant.

2. Dated photographs or video taken at move-in and move-out.

3. Written estimates or invoices from licensed contractors or cleaning services.

4. Records of any communications with tenant regarding the condition.

Tenant Remedies if Deposit Not Returned Timely

If the landlord fails to return the deposit or provide the itemized statement within 45 days, the tenant may sue in small claims court (or appropriate court) for:

• The full amount of the deposit withheld

• Up to double the amount wrongfully withheld (statutory damages)

• Court costs and reasonable attorney fees

Tenants should send any demand by certified mail, return receipt requested, and keep copies of all correspondence.

No Statutory Deposit Cap

Unlike some states, Indiana does not impose a maximum security deposit amount by statute. Landlords may set deposits based on market, risk, and lease terms. However, the deposit must still be handled strictly according to IC 32-31-3., -

Template example, not professional (legal/financial/medical) advice. This letter and statement satisfy the requirements of Indiana IC 32-31-3-12 and IC 32-31-3-13. The 45-day deadline is strict; failure to comply results in forfeiture of the right to withhold. Permissible deductions are limited by statute. Verify current statutes and retain documentation. Sources: IC 32-31-3-12, IC 32-31-3-13 (as of 2026).

> ⚠️ Template example, not professional (legal/financial/medical) advice. Figures and clauses must be verified for the applicable jurisdiction and kept current.

> ⚠️ Template example, not professional (legal/financial/medical) advice. Figures and clauses must be verified for the applicable jurisdiction and kept current. Invented values are tagged `[ASSUMPTION: …]`.