As a landlord renting out a property in Indiana, it’s important to know the rules and regulations regarding early lease termination. A tenant may want to break their rental or lease agreement for several reasons, like a divorce, an out-of-town job, or even to begin military assignment. 

Regardless, Indiana landlord-tenant law requires a tenant breaking their lease to follow the proper legal route. After all, a lease agreement is a legally binding agreement that runs for a fixed period. Keep reading to learn more about early lease termination laws in Indiana.

Lease Agreements in Indiana 

A rental agreement is one of the most important documents for a landlord to have when renting out a property. And you must make sure that it includes all important clauses for a successful landlording experience. 

The following are some of the clauses the rental agreement must have. 

• Penalties for unjustifiably breaking the lease. Let the tenant know that they may be liable to certain penalties if they fail to stay for the entire term of the lease. Specifically, they may be liable to pay the entire rent due under the lease. 
• The tenant’s right to break the lease for legitimate reasons. Such reasons include military deployment, domestic violence, tenant death, and disability. 
• Early lease termination notice. Let the tenant know that they cannot simply move out of the unit without serving you proper notice. Under Indiana law, the amount of notice to serve is dependent on the type of rental agreement. If on a month-to-month lease, the tenant must serve you a 90-day advance notice. If on a yearly lease, the tenant must serve you a 30-day advance notice. 
• The landlord must find a replacement tenant in Indiana. In Indiana, landlords have a legal duty to find a replacement after a tenant leaves. This is according to Indiana law (Nylen v. Park Doral Apartments, 535 N.E.2d. 178 (Ind. Ct. App. 1989)). 

Other equally important terms to include in your lease include rent-related terms, repairs and maintenance, occupancy rules, and pet rules. 

Unjustified Reasons to Break a Lease in Indiana

Under Indiana law, it’d be illegal for a tenant to break a lease for the following reasons. 

• Moving to be closer to loved ones. 
• Disliking the neighborhood.
• Finding a better deal on another apartment. 
• Relocating for school or work. 
• Buying a house. 

None of these reasons give a tenant a legal justification to break their legal obligations under the lease. 

Justified Reasons to Break a Lease in Indiana 

1. Active Military Duty 

Tenants in Indiana can break their lease due to military duty. To do so, they must, however, meet the following requirements. 

• Must have signed the lease before active military service.
• Must have received a permanent change of station (PCS) order or deployment order for at least 90 days.
• Be an active-duty member of the military, Reserve, National Guard, or a commissioned officer of the Public Health Service or the National Oceanic and Atmospheric Administration.

As a landlord, you may also require that the tenant show proof of military duty. The tenant can do so by showing their military ID, as well as their PCS or deployment orders. 

2. Domestic Violence 

Tenants facing domestic or sexual violence in Indiana can also break their lease legally. The tenant can prove their domestic violence status through either of the following. 

• By providing you with proper documentation from a licensed healthcare provider. 
• By providing you with a copy of a court-issued injunction or protective order. 

In addition, the tenant must provide you with 30 days’ written notice of termination before moving out. 

3. Uninhabitable Living Conditions 

Rental units must meet certain physical and safety standards to be considered habitable. Specifically, Indiana law requires working furnaces and windows, locks on doors, hot and cold water, a working HVAC system, and adequate sanitation facilities.

Additionally, you must make requested or needed repairs within a reasonable time. If you’re consistently finding it difficult to make repairs on time, please consider hiring a professional property manager. 

4. Death of a Tenant 

If a tenant dies before the end of their lease, their estate has the right to terminate the lease without penalty. To terminate a lease due to a tenant’s death in Indiana, the representative of the estate must provide written notice to the landlord within a reasonable time after the death.

5. Landlord Harassment 

To protect tenants, Indiana law defines several behaviors that qualify as landlord harassment. These behaviors include:

• Repeatedly entering a tenant’s home without notice. 
• Changing locks without tenant permission.
• Refusing to make necessary repairs. 
• Engaging in discrimination. 

The tenant must file a complaint with the Indiana District Court to terminate the lease. The court will schedule a hearing and make a decision. 

6. Disability 

Tenants who have a mental or physical disability may be able to break their lease without penalty as well. As a landlord, you have a right to request information that is necessary to evaluate the disability. 

The following conditions qualify as a disability under Indiana law. 

• Heart disease
• Cerebral palsy
• Muscular dystrophy 
• Multiple sclerosis
• Autism
• HIV
• Epilepsy 
• Speech, visual, or hearing impairments

7. Landlord Retaliation 

Landlord retaliation is when a landlord takes action against a tenant for exercising their rights under the law. The following are actions that may qualify as landlord retaliation in Indiana. 

• Increasing rent illegally.
• Decreasing or terminating services the tenant was previously enjoying.
• Interfering with the tenant’s use of the property, such as entering repeatedly without notice. 
• Illegal eviction or termination of lease. 

Avoid such actions to become a successful landlord in Indiana. As a good landlord, you’ll always want to respect the lease agreement and local laws. Provide the tenant with proper notice before entry, treat them equally and fairly, and only consider evicting them as a last resort, among other things. 

Conclusion

Now you know what exactly constitutes justified and unjustified reasons for early lease termination in Indiana. If you need expert property management help, then look no further than Specialized Property Management Indianapolis. 

We help landlords maximize their ROI; we can do the same for you, too. It’s our job to take care of maintenance, tenant screening, and lease agreements so it doesn’t have to be yours! Contact us today to learn more about our property management services. 

Disclaimer: Please note that the information provided in this blog is intended for general guidance and should not be considered as a replacement for professional legal advice. It is important to be aware that laws pertaining to property management may change, rendering this information outdated by the time you read it.