Overview
Leases are the cornerstone of a successful landlord-tenant relationship, providing a legal framework for both parties to enter a harmonious agreement.
In Indiana, residential lease documents—including their structure, nature, and contents—are regulated by Indiana landlord tenant laws. For this reason, it’s imperative to understand the intricacies of the law before constructing a lease.
This guide will walk you through the crucial components of a lease agreement Indiana considers compliant, ensuring you’re well-equipped to make informed decisions. And to make your journey easier, we’re offering a free Indiana lease template for download!
An Indiana lease is a legally binding document that outlines the terms and conditions governing the rental of a residential property within the state. This lease adheres to Indiana’s landlord-tenant laws, providing a clear framework for both landlords and tenants to follow and fostering a secure and transparent rental environment.
The following components should be included in every lease agreement in Indiana. Note that these components primarily apply to residential leases; an Indiana commercial lease agreement will necessarily have different requirements.
Lease Term
This section specifies the lease’s start and end dates, establishing the duration of the rental agreement.
Rent
Here, you’ll find details regarding the rent rate, due date, and the status of rent control. In Indiana, rent control is banned – no city or county in Indiana can pass a law that regulates the price of rent. This means Indiana landlords can charge whatever reasonable price they deem appropriate for rent.
Late Fees
The penalties for missing rent payments should be clearly stated in the lease, as should any exceptions. In Indiana, there are no statutory limits on late fees or mandatory grace periods. This means landlords can again charge whatever reasonable fee they decide on—as long as the late fee policy is clearly described in the lease agreement, so that tenants know exactly what will happen if they are late to pay rent.
Security Deposit
This section of the lease includes details about the security deposit, including its amount, where it will be stored, and how/when it will be returned.
There is no maximum or limit on security deposit amounts in Indiana, nor are landlords in the state required to deposit them in any particular manner or pay interest on them. However, Indiana law does require landlords to return security deposits within 45 days after the lease’s termination (IC § 32-31-3-12).
Indiana leases should include both the amount of the security deposit as well as a description of how and when it will be refunded and the conditions under which funds may be withheld from it.
Required Disclosures
This section encompasses crucial required disclosures, which are information that must be disclosed to the tenant in the lease before they agree to rent the property. These disclosures must be included in a lease agreement Indiana considers complaint or provided to tenants in a separate written notice.
In Indiana, the required disclosures are:
- Lead-based paint – Landlords in all 50 states must disclose lead-based paint hazards in rental agreements for most properties built before 1978.
- Landlord/agent identification – Landlords in Indiana must disclose the name and address of whoever is authorized to manage the unit and receive notices.
- Smoke detector – Landlords in Indiana must provide written notice that the unit has a working smoke detector at the beginning of each tenancy.
- Flood zone – If a property’s lowest floor is basement is at or below the 100-year frequency flood elevation, the landlord must disclose this in the rental agreement.
- Water and sewage disposal services – Indiana landlords must disclose to each new tenant what the water or sewage disposal services provided are.
Landlord Right to Entry
In Indiana, the law requires landlords to give reasonable written or oral notice before entering any occupied unit. Additionally, landlords can only enter at reasonable times, except in an emergency (IC § 32-31-5-6(g)). All Indiana leases should include the landlord’s right of entry and the possible reasons for entry (e.g., showings, inspections, repairs, etc.).
Repairs & Maintenance
The lease outlines how and when tenants should submit maintenance requests and clarifies the process for addressing necessary repairs. Every Indiana residential lease agreement should specify which maintenance responsibilities are the landlord’s and which are the tenant’s.
Renewal Procedures & Termination of Lease Agreement in Indiana
This section details the procedures for renewals, early termination of lease agreement in Indiana, and breaking the lease, including the eviction process. Specifically, the lease should clearly state how many days’ notice the tenant needs to provide the landlord to announce their intent to either renew or terminate the lease.
An Indiana residential lease agreement should also clearly describe what happens if the tenant breaks the lease. Before filing for eviction in Indiana, landlords must send notices of specified lengths: A ten-day notice to pay or quit for nonpayment, a reasonable notice to cure or quit for lease violations, or a 45-day quit notice for public nuisances or illegal activity. These notice periods should be specified to the tenant so that both parties are clear on what will happen if the tenant fails to uphold the lease agreement.
Joint and Severability Clause
This clause is for leases with multiple roommates and explains the legal consequences if one party fails to fulfill their obligations. It ensures that the entire lease isn’t invalidated due to one roommate’s breach.
Signatures
Both the landlord and tenant will sign the lease either on paper or electronically, ensuring a secure and convenient process.
Indiana Lease Agreement Download
To make your leasing journey simpler, we offer a free, downloadable Indiana lease agreement. This template is tailored to meet the specific requirements of Indiana state law, making it a valuable tool for landlords and tenants.
Conclusion
Understanding the nuances of Indiana leases is vital for a smooth and legal tenancy. We hope this guide has provided you with a clear understanding of the components of an Indiana lease. To get started on the right foot, download our free Indiana lease template and ensure a transparent, lawful, and satisfying rental experience.
