Who Needs an Indiana Landlord Bond?

An Indiana Landlord Bond may be required for:

• Landlords managing rental properties in certain cities or counties

• Property management companies handling tenant security deposits

• Owners of multi-unit rental properties

• Landlords with a history of deposit disputes

This bond is often required when a landlord chooses to hold tenant security deposits in a private account rather than a separate escrow account. The bond provides financial protection to tenants in case the landlord fails to return deposits as required by law.

How Does the Indiana Landlord Bond Work?

This bond ensures landlords follow state rental laws and properly manage tenant funds. Here’s how it works:

1. You obtain the bond as a requirement for holding tenant security deposits.

2. The bond guarantees compliance with lease agreements and landlord-tenant laws.

3. If a claim is filed, such as for wrongful withholding of a deposit, failure to refund a deposit, or mishandling of funds, the surety company may compensate the affected tenant up to the bond amount. However, you are ultimately responsible for reimbursing any claims paid by the surety.

Cost of an Indiana Landlord Bond

The cost of this bond depends on several factors, including:

• The required bond amount (varies based on the total security deposits held)

• Your credit score and financial history

• The surety company’s underwriting process

Typically, well-qualified landlords can expect to pay 1% to 5% of the total bond amount. If you have strong credit and financial stability, you may receive lower rates, while landlords with credit challenges may pay slightly more.

How to Obtain an Indiana Landlord Bond

Getting your bond is a simple and quick process:

1. Check local requirements – Contact your city or county housing authority to determine the required bond amount.

2. Request a quote – Provide details about your rental business and financial background.

3. Submit your application – Complete the necessary paperwork and provide supporting documentation if needed.

4. Receive your bond – Once approved, you’ll receive the bond to file with the appropriate agency or include in your rental agreements.