Cal. Civ. Code § 32-31-3-13
Use of deposits
Operative Text
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.
Indiana Code § 32-31-3-13 limits the purposes for which a landlord may draw on a tenant's security deposit. Permitted uses include covering actual physical damage to the unit or related facilities beyond ordinary wear and tear, unpaid or past-due rent, rent owed because the tenant ended the lease early, and utility or sewer charges that were the tenant's contractual responsibility but went unpaid. A deposit may also be applied to the final rent payment if a written agreement between the parties specifically designates it for that purpose.
Plain English — not legal advice.
Under Ind. Code § 32-31-3-13, compliant operators document the condition of the rental unit at move-in and move-out to distinguish actual damage from ordinary wear and tear before making any deduction. Landlords generally keep clear records of unpaid rent, early-termination amounts, and any utility or sewer charges the tenant was obligated to pay under the lease. Any application of the deposit to the last month's rent is supported by a written agreement that explicitly authorizes that use.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Ind. Code § 32-31-3-13 defines the only lawful reasons a landlord may keep any portion of a security deposit, giving tenants a clear basis to contest deductions that fall outside those categories—such as charges attributed to normal wear and tear. Tenants who believe a deduction was improper can review Indiana's broader security deposit statutes (Ind. Code § 32-31-3) for related notice and return requirements, and may consider reaching out to a local tenant-rights organization for general information. Raising an unlawful deduction as a claim in small claims court is one path available under Indiana law.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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