In Indiana, like most states, businesses that are holders of another individual or business’ property are required to report and send that property to the Indiana Attorney General’s Unclaimed Property Division after a period of inactivity. Most often, the unclaimed property subject to this requirement for rental property owners is unclaimed security deposits and credits owed to vendors or residents in accounts receivable.

Unclaimed property can consist of uncashed checks, credits, abandoned bank accounts, accounts receivable, stocks, bonds, escrow accounts, security deposits, safe deposit box contents, or other abandoned property that a business or organization (“Holder”) has in its possession that has reached the legal holding period. In Indiana, generally that period is three years before reporting and distribution to the State of Indiana must occur.

Property is considered abandoned when there has been no activity or contact with the owner for a particular period. The type of property determines the abandonment period. Security deposits and accounts receivables fall into the three year period. (Ind Code 32-34-1.5-4). All unclaimed property, regardless of amounts, must be reported to Indiana Unclaimed after it is designated abandoned by statute. Additionally, holders of unclaimed property are required (Ind. Code 32-34-1.5-23) to complete due diligence on all unclaimed property of $50 or more by sending written notice to the owner no later than September 1 of each reporting year. The annual reporting deadline for all holders of unclaimed property is November 1.

The Attorney General’s office strongly encourages that regardless of whether a business has any unclaimed property in its possession that it completes an annual report by November 1 indicating that it is a negative or zero report to demonstrate to the Attorney General’s office that the business has knowledge of the requirements of Indiana Unclaimed.

Property owners can avoid the requirements for unclaimed property by instituting policies and being diligent to return credits and security deposits timely before hitting the three year threshold for reporting. Further, property owners are encouraged to obtain comprehensive contact information for residents and vendors, along with alternative contacts to aid in forwarding any unclaimed property.

To learn more about Indiana Unclaimed, visit indianaunclaimed.gov, which has extensive resources including video tutorials on how to complete and file reports. Additionally, there are links to statutes, manuals, webinars, sample due diligence letters, FAQ’s, and more. 

In the summer of 2023, IAA hosted a webinar covering the requirements of returning security deposits and the requirements of Indiana Unclaimed. To view that webinar, visit the Resources section of Management Issues.