The Short Answer: Indiana Doesn't Cap Pet Deposits (Yet)

Here's the thing: Indiana law doesn't actually set a limit on how much a landlord can charge for a pet deposit. That's different from security deposits, which have strict rules under Indiana Code § 32-31-3-17—but pet deposits live in a different legal universe, and it's honestly frustrating if you're a tenant trying to figure out what's reasonable.

Before you panic, though, let me break this down. Just because something isn't capped by law doesn't mean your landlord can charge whatever they want without consequences.

What Indiana Law Actually Says About Pet Deposits

Indiana doesn't have a specific statute that limits pet deposit amounts the way some states do. That means your landlord could theoretically charge $500, $1,000, or more for your dog or cat—and technically stay within the law.

But here's where it gets important: pet deposits aren't the same as pet fees. A deposit is supposed to be held and returned to you after you move out (minus legitimate damages caused by your pet). A non-refundable pet fee is just money your landlord keeps, and those can be charged separately.

The key difference matters because Indiana courts have held that deposits—including pet deposits—are supposed to function like security deposits in terms of basic fairness, even if they're not covered by the same statute.

The Recent Shift in Tenant Protections

Look, Indiana's tenant rights laws have been slowly tightening over the past few years. While there's no new pet deposit cap law that's recently passed, there's been growing pressure from tenant advocates to regulate pet-related charges more strictly.

What's actually happened is that security deposit rules have gotten stricter, and that's bleeding over into how people think about pet deposits. Under Indiana Code § 32-31-3-17, landlords must put security deposits into a separate escrow account and return them within 45 days of move-out (minus itemized deductions for actual damages). If your landlord doesn't follow these rules, they can owe you triple the deposit amount plus attorney's fees—and yes, some courts have applied this logic to pet deposits too.

That creates a gray area that's actually working in your favor.

What You Need to Know About Reasonable Pet Charges

Real talk—just because Indiana doesn't cap pet deposits doesn't mean every charge is legal or enforceable. Here's what matters: the deposit has to be for actual damages, not profit. — even if it doesn't feel that way right now

If your landlord charges a pet deposit, they can only keep money to cover:

They can't keep pet deposit money for normal wear and tear, or just because they feel like it. And if they do, you've got grounds to sue them under Indiana's unjust enrichment doctrine, which gives courts the power to make things right even when a specific statute doesn't exist.

The burden is on your landlord to prove the damages were actually caused by your pet and to provide an itemized list of deductions—just like with a security deposit.

Pet Fees vs. Pet Deposits: Don't Confuse Them

Most Indiana leases will distinguish between these two things, and you need to understand the difference or you could end up overpaying.

Pet deposits are refundable. Your landlord holds them and returns them (minus legitimate deductions) when you move out. Pet fees are typically non-refundable monthly charges—like $25 or $50 a month per pet. Some landlords charge both.

Indiana law doesn't limit either one, but pet fees are usually reasonable amounts ($10–$50 per month, though it varies). If your landlord is charging what seems like an outrageous monthly pet fee on top of a huge pet deposit, that's worth negotiating before you sign.

What Should You Actually Expect to Pay?

Honestly, Indiana landlords all over the map on this. In urban areas like Indianapolis, you might see pet deposits ranging from $300 to $500, with monthly fees of $25–$40. In smaller towns, the charges tend to be lower or sometimes nonexistent.

The real question is whether the amount is reasonable relative to the actual risk of pet damage. A landlord charging $1,500 for a small dog in a brand-new apartment might struggle to justify that if you ever challenge the charge.

A $400 deposit for a large dog in a older rental? That's probably defensible.

Negotiate if you can. Some landlords will waive or reduce pet deposits if you provide references showing you've been a responsible pet owner in the past, or if you agree to pet liability insurance.

Your Rights If a Landlord Keeps Too Much of Your Pet Deposit

If you move out and your landlord keeps your pet deposit claiming damages that weren't actually caused by your pet, you've got options. First, demand an itemized breakdown of what they deducted—they're legally required to provide one within 45 days of your move-out date.

If the deductions seem unfair and they won't negotiate, you can file a small claims lawsuit in your county court (if the amount is under $6,000—which covers most pet deposits). You'll want photos showing the condition of the unit when you moved in and out, any messages between you and the landlord about the pet deposit, and documentation of any pet-related damages that were actually your responsibility.

Indiana courts take this seriously, and if your landlord can't justify the deduction with evidence, you could win your money back plus court costs.

The Bottom Line Here

Indiana doesn't cap pet deposits, so technically your landlord can charge a lot. But that doesn't mean the charge is automatically enforceable or reasonable. Document everything, understand the difference between deposits and fees, and don't hesitate to push back if something feels off. You've got more legal protection than you might think—you just have to know where to find it.

Key Takeaways