If your landlord is sitting on your deposit, Indiana law gives you a hard deadline and a real penalty — and a properly cited demand letter is how you invoke both. Here is exactly what Ind. Code §§ 32-31-3-12 to -15 requires.
Indiana's deposit rules at a glance
| Return deadline | Itemized written notice + amount due within 45 days after termination and delivery of possession (IC 32-31-3-12, -14) |
| The penalty | Missed notice = agreement that no damages are due — immediate full refund (IC 32-31-3-15) — plus recovery of the deposit and reasonable attorney's fees (IC 32-31-3-12(b)) |
The 45-day rule — and the address that starts it
Under Indiana Code 32-31-3-12 and -14, your landlord must mail an itemized list of claimed damages — with the estimated repair cost of each item — together with a check for the difference, within 45 days of termination and delivery of possession. One catch tenants miss: the landlord isn't liable until you supply a written mailing address. Send your forwarding address in writing the day you move out; it arms every remedy in the chapter.
Section 15 is the quiet killer
IC 32-31-3-15 says a landlord's failure to provide the damage notice 'constitutes agreement by the landlord that no damages are due' — and the full deposit must be remitted immediately. Not 'may forfeit.' The statute converts silence into a binding admission. A landlord who blew the 45 days has, as a matter of law, already agreed they owe you everything.
Attorney's fees make small deposits worth fighting
IC 32-31-3-12(b) lets a tenant recover the deposit due plus reasonable attorney's fees when the landlord fails to comply. Fee-shifting changes the economics: an $900 deposit claim that also carries the landlord's obligation to pay your lawyer is a claim landlords settle. Small claims court remains available without a lawyer at all.
What your letter should establish
Move-out date, delivery of possession, your written forwarding address (and when you provided it), the deposit amount, the missed or defective notice, and the Section 15 consequence — then a firm deadline before filing. Indiana's statute does the arguing; the letter just lays the record out so the landlord's own lawyer tells them to pay.
What a strong Indiana demand letter looks like
It states the deposit amount, the move-out date, the statutory deadline that passed, and the penalty exposure in dollars — citing Ind. Code §§ 32-31-3-12 to -15 by name. Here's how the opening of a strong one reads:
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This guide is general information about Indiana law, not legal advice. Statutes are paraphrased; verify current law for your situation. For significant or contested claims, consult a licensed Indiana attorney.
Already hearing from a collection agency?
Landlords hand move-out balances to a small set of specialist collectors. If the letter is from National Credit Systems, Hunter Warfield, IQ Data International, or Source RM, we have a company-specific response guide for each — and the demand letter on this page still applies, because a landlord who missed the statutory deadline may owe you money regardless of who is calling. Any other collector: see the collection agency index and your state’s rules in the debt statute of limitations guide.