Indiana - Any Limits on Security Deposit?

Question

Does Indiana limit the amount you can charge for security deposit?  I want to charge a potential tenant with a german shephard a security deposit of $1,000 for a place that rents for $750/month.  Does Indiana limit the total security deposit to a maximum of 1 month's rent like some states like New York do?  The property is in Muncie IN . Any replies would be appreciated ! :)

Nathan Gesner · Answer

Indiana does not limit the amount of a deposit, but you may have limitations based on local law.

Do yourself a favor: buy "Every Landlord's Legal Guide" by NOLO. Written by attorney investors, it's full of practical advice pertaining to management of investment property, has sample forms that can be edited, and - most importantly - they tell you what your primary state laws are and where you can read them. It's updated every year and is the best $40 you'll spend as a Landlord. There is one book for 49 states and a separate book for California.

Nathan Gesner · Answer

Right? One book for 49 states and another book for California. I don't understand why anyone invests there.

John Teachout · Answer

Many states have an online handbook with landlord tenant laws in it. Search for one from Indiana and read it. Reference it as needed to ensure you're getting your I's dotted and T's crossed correctly.

When you charge the security deposit, I wouldn't state it's for the animal as otherwise it may become an ESA which wouldn't allow you to assess a higher deposit. If you have multiple properties, you could charge all of them a higher deposit amount, even if they don't have an animal. We don't always base our deposits on the rent amount and many states have no requirement that you do so. (some do though so it's good to find out)

Indiana - Any Limits on Security Deposit?

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