State Rules and Regulations for Indiana Rental Properties and Landlords

According to Indiana Law (Indiana Code Title 32 Article 31), a landlord-tenant relationship exists whenever one party exchanges money for the habitation of property, this relationship carries with it certain rights and responsibilities. Tenants have the right to a habitable dwelling and the right to take alternative action.

Landlords are entitled to collect rent in a timely manner and be reimbursed for costs from damages exceeding those from normal use.

Indiana Official Rules and Regulations

Indiana Security Deposit Law

  • Security Deposit Maximum: No statute (IC 32-31-3-12)
  • Security Deposit Interest: No statute.
  • Separate Security Deposit Bank Account: No statute
  • Pet Deposits: No statute.
  • Non-Refundable Fees: No statute.
  • Application Fees: No statute.
  • Deadline for Returning Security Deposit: 45 days (IC 32-31-3-12)
  • Permitted Uses of the Deposit: Landlords are allowed to make deductions from the security deposit to pay for:
    • for the payment of unpaid rent;
    • for reimbursement of damages that are not the result of ordinary wear and tear;
    • for the amount of damages that the landlord has suffered or will reasonably suffer due to the tenant’s noncompliance with law or the rental agreement; and
    • for any unpaid utility or sewer charges that the tenant is obligated to pay. (IC 32-31-3-12)
  • Require Written Description/Itemized List of Damages and Charges: Within 45 days of termination of occupancy, the landlord must deliver an itemized list of damages, with a money order for the difference between the damages claimed and the amount of the security deposit. The itemized list shall include:
    • the estimated cost of repair for each damaged item; and
    • the amounts and lease on which the landlord intends to assess the tenant. (IC 32-31-3-14)
  • Record Keeping of Deposit Withholdings: No statute
  • Receipt of Deposit: No statute.
  • Failure to Comply: Failure by a landlord to provide notice of damages constitutes agreement by the landlord that no damages are due, and the landlord must immediately return the full security deposit to the tenant. (IC 32-31-3-15) Landlords who fail to itemize the damages are liable to the tenant for an amount equal to the part of the deposit withheld by the landlord plus reasonable attorney’s fees and court costs. (IC 32-31-3-16)

Evictions in Indiana

These are the most common reasons for pursuing evictions in Indiana:

  1. Nonpayment of rent – If an Indiana tenant fails to pay rent, then the landlord may issue a 10-Day Notice to Pay or Quit after any applicable grace period. If the tenant still does not pay, then the landlord can start eviction proceedings.
  2. Violation of lease terms – If a lease violation has occurred, then the landlord may issue a 10-Day Notice to Cure or Quit. If the tenant fails to remedy the issue within 10 days, the landlord may start eviction proceedings.
  3. Illegal acts – Landlords have broad discretion to determine evictions for illegal activities, and may even include acts that are not explicitly illegal. If a tenant is engaged in illegal activity on the property, then the landlord can issue an Unconditional Notice to Quit.

At-will tenants who pay rent on a month-to-month basis are entitled to a 30-day notice prior to an eviction. It is also illegal for landlords to evict tenants in retaliation or for discriminatory reasons.

Notices & Entry Under Indiana Law

  • Notice to Terminate Tenancy – Fixed End Date in Lease: No statute. No notice is needed as the lease simply expires. (IC 32-31-1-8)
  • Notice to Terminate Tenancy – Year-to-Year Lease: Three Months (IC 32-31-1-3)
  • Notice to Terminate Tenancy – Month-to-Month Lease: One Month (IC 32-31-1-1)
  • Notice of Termination of a Lease for Nonpayment: 10 Days, but the tenant may pay the rent in full before the notice period expires, in order to stay. (IC 32-31-1-6)
  • Termination for Lease Violation: No Statute
  • No Notice to Quit Needed: A landlord can give an immediate unconditional quit notice in the following situations: (IC 32-31-1-8)
    1. A tenant at will commits waste.
    2. The tenant continues living in the unit after the lease has expired.
    3. The express terms of the contract require the tenant to pay the rent in advance, and the tenant refuses or neglects to pay the rent in advance.
    4. The landlord-tenant relationship does not exist.
  • Notice of Date/Time of Move-Out Inspection: No statute.
  • Required Notice before Entry: “Reasonable” written or oral notice is required. No exact amount of time is specified, but, generally, 24 hours is recommended. (IC 32-31-5-6(g))
  • Entry Allowed with Notice for Maintenance and Repairs (non-emergency): Yes (IC 32-31-5-6(e))
  • Entry Allowed with Notice for Showings: Yes (IC 32-31-5-6(e))
  • Emergency Entry Allowed without Notice: Yes (IC 32-31-5-6(f))
  • Entry Allowed During Tenant’s Extended Absence: No statute.
  • Notice to Tenants for Pesticide Use: No statute.
  • Lockouts Allowed: No (IC 32-31-5-6(c))
  • Utility Shut-offs Allowed: No (IC 32-31-5-6(c))

Rent Increases & Related Fees  Under Indiana Law

  • Rent control. Indiana law precludes local legislation that amounts to rent control. As such, landlords can set rental prices as high as they want.
  • Rent increases. There are no limits to how much Indian landlords can raise rent but state law requires landlords to give tenants at least 30 days of written notice before raising rental prices.
  • Rent-related fees. Indiana has no limits on how much landlords can charge in late fees. The state does mandate a $25 returned check fee.

Helpful Links

State Agencies & Regulatory Bodies

Housing Authorities

These resources are for informational purposes only and should not be construed as legal advice. Landlords and Tenants are encouraged to seek specific legal advice for any of the issues as found in this blog.

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