its actually very much against the law in Indiana.
In fact. here if you the landlord don't have written, documented evidence of reasons to keep or withhold some deposit you must return it all regardless of how the place might be trashed. in fact the landlord only has a short period of time, like 60-90 days maybe or they will have to return it all regardless.
we were renting a place from a rental management company and the duplex was sold. rental management company incoming inspection was really hard to read and they would not support.
when it was time to move out, even though the new owner said don't worry about cleaning the carpet the land lord thought it should be replaced so he kept the deposit. Also wanted us to pay for the 1/2 done drywall mud that the original contractor didn't finish 10 years before we moved in (yeah right). He also paid his kids to clean the place which he deducted so $0 was coming back. (all of which are illegal anyway, carpet is regular wear item, you can not pay yourself for work on the property and we didn't do the drywall) Our lawyer said to not do anything for the 60-90 days to see if he sends receipts ect. He didn't. the lawyer sent him a nice note reminding him of the law and he must pay. got the check for the full amount in about a week.
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