23 Nov Security Deposits
Landlords: What Should You Do With The
Security Deposit After Eviction?
Many times landlords come to our office seeking advice on how to deal with a security deposit after they have evicted a tenant. Indiana has a law that all landlords must be aware of. Indiana Code 32-31-3-12 requires a landlord to return a security deposit to a tenant. However, a landlord can subtract any accrued rent, damages, and unpaid utility bills, from the security deposit.
All of the offsets against the security deposit must be itemized by the landlord in a written notice that is delivered to the tenant not more than 45 days after termination of the rental agreement and delivery of possession. If the landlord fails to comply with this notice provision, then a tenant may recover all of the security deposit as well as the tenant’s reasonable attorney fees. The landlord does not have this requirement though until the tenant supplies the landlord with a mailing address in writing.
Bloom Gates Shipman & Whiteleather, LLP has several attorneys that are well versed in landlord tenant law both from a residential and commercial perspective. If you have questions about how this law affects you, please give us a call.