Indiana Code
Ind. Code § 32-31-3-13 (2026)
Use of deposits
✓ current as of May 2026
Sec. 13. A security deposit may be used only for the following purposes:
(1) To reimburse the landlord for actual damages to the rental unit or any ancillary facility that are not the result of ordinary wear and tear.
(2) To pay the landlord for:
(A) all rent in arrearage under the rental agreement; and
(B) rent due for premature termination of the rental agreement by the tenant.
(3) To pay for the last payment period of a residential rental agreement if a written agreement between the landlord and the tenant stipulates that the security deposit will serve as the last payment of rent due.
(4) To reimburse the landlord for utility or sewer charges paid by the landlord that are:
(A) the obligation of the tenant under the rental agreement; and
(B) unpaid by the tenant.
[Pre-2002 Recodification Citation: 32-7-5-13.]
As added by P.L.2-2002, SEC.16.
Notes of Decisions
Cited in 12
cases (1 in the last 5 years), 2002–2023 · leading case: Lae v. Householder, 789 N.E.2d 481 (Ind. 2003).
Lae v. Householder, 789 N.E.2d 481 (Ind. 2003). “I.C. § 32-31-3-13(1). In Raider, the Court of Appeals concluded that section 12 governs the consequences of failure to comply with the more specific information required by section 14.”
Starks v. Vill. Green Apts., 854 N.E.2d 411 (Ind. Ct. App. 2006). “As we have explained, "[t]he matter of the security deposit refund, if any, should be resolved first, and is a prerequisite for pursuing claims for other damages in excess of the security deposit, or not addressed in Ind.Code § 32-31-3-13. If the required notice is not given,…”
Eppl v. DiGiacomo, 946 N.E.2d 646 (Ind. Ct. App. 2011). “[I.C. § 32-31-3-13] A security deposit may be used only for the following purposes: (1) To reimburse the landlord for actual damages to the rental unit or any ancillary facility that are not the result of ordinary wear and tear.”
Turley v. Hyten, 772 N.E.2d 993 (Ind. 2002). “For a similar provision, see Indiana Code section 32-31-3-14, which provides: Not more than forty-five (45) days after the termination of occupancy, a landlord shall mail to a tenant an itemized list of damages claimed for which the security deposit may be used under section 13…”
Klotz v. Hoyt, 880 N.E.2d 1234 (Ind. Ct. App. 2008). “"The notice requirement must be met before the Landlord can, recover not only those damages recoverable under Ind.Code § 32-31-3-13 regarding the use of the security deposit, to cover actual damages, rent arrearages, or utility or sewer charges, but also the `other damages'…”
Hill v. Davis, 832 N.E.2d 544 (Ind. Ct. App. 2005). “Ind.Code § 32-31-3-13 (2004). 4 . Landlord also argues that Tenants oral recitation of their address in Clayton, Indiana was insufficient because it was "a physical address [and] not a mailing address.”
Jacqueline Smith v. Laurenz Place LLC, 127 N.E.3d 1250 (Ind. Ct. App. 2019). “I.C. § 32-31-3-13. However, agreements that a tenant clean or pay for cleaning of leased premises may be upheld in a lease enforcement action.”
Reeves v. Downin, 915 N.E.2d 556 (Ind. Ct. App. 2009). “See Ind.Code § 32-31-3-13(1) (security deposit may be used to reimburse landlord for actual damages to rental unit that are not result of ordinary wear and tear).”
Richard Kulbieda v. Sara Alford & Cory Day (mem. dec.) (Ind. Ct. App. 2017). “I.C. § 32-31-3-13. See Sholes v. Sholes, 760 N.”
Shannon Richard v. Vernon Robinson (mem. dec.) (Ind. Ct. App. 2019). “” Ind. Code § 32-31-3-13 (1). Similarly, a tenant has an obligation to deliver the rental property to the landlord in a “clean and proper condition, excepting ordinary wear and tear expected in the normal course of habitation of a dwelling unit.”
Xihui Wang v. Mingyu Sun (Ind. Ct. App. 2023). “(Emphasis added); see also I.C. §§ 32-31-3-13, -14. Our Supreme Court has explained that “the landlord’s obligation begins to run ‘after termination of the rental agreement and delivery of possession.”
Demettress Burnett v. David Davis & Mari Davis (mem. dec.) (Ind. Ct. App. 2019). “Pursuant to Indiana Code sections 32-31-3-13(1) and 32-31-3-14, then, the Davises’ claims for physical harm to the residence were not recoverable because they were not timely claimed.”
— Ind. Code § 32-31-3-13(1) — 4 cases
Lae v. Householder, 789 N.E.2d 481 (Ind. 2003). “I.C. § 32-31-3-13(1). In Raider, the Court of Appeals concluded that section 12 governs the consequences of failure to comply with the more specific information required by section 14.”
Reeves v. Downin, 915 N.E.2d 556 (Ind. Ct. App. 2009). “See Ind.Code § 32-31-3-13(1) (security deposit may be used to reimburse landlord for actual damages to rental unit that are not result of ordinary wear and tear).”
Richard Kulbieda v. Sara Alford & Cory Day (mem. dec.) (Ind. Ct. App. 2017). “I.C. § 32-31-3-13. See Sholes v. Sholes, 760 N.”
Demettress Burnett v. David Davis & Mari Davis (mem. dec.) (Ind. Ct. App. 2019). “Pursuant to Indiana Code sections 32-31-3-13(1) and 32-31-3-14, then, the Davises’ claims for physical harm to the residence were not recoverable because they were not timely claimed.”
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