It is prudent to always include a security deposit in a lease contract. A security deposit is included in the terms of most lease agreements. The purpose of the security deposit is to set aside funds for the protection of the owner of the property from violations of the lease agreement. The funds should be set aside and not used toward funding of the maintenance of the property.
Understanding the rights of both the landlord and the tenant as to the processing these security deposits is an important part of managing a rental property. If you are a tenant, it is beneficial to know your rights also.
The following is a quick reference to laws for security deposits in Indiana:
- Limits- No dollar limits as to how much can be charged.
- Interest does not have to be paid on deposits.
- Charges Allowed Against the Security deposit- Breaches of lease/Damages/unpaid utilities and sewer/unpaid rent
- No Walk though inspection with tenant required
- Written accounting of charges against the deposit are required.
- 45 days allowed to refund and provide accounting of the security deposit settlement
- Read the law: Indiana Code