Breaking a Lease in Indiana

Last Updated: March 16, 2022 by Elizabeth Souza

Find out when a tenant can legally break a lease in Indiana, when they can’t, and if a landlord is required by Indiana law to make reasonable effort to re-rent.

Before we address the legally acceptable reasons to get out a lease early without penalty, it’s important to understand the notice requirements in Indiana to end a tenancy.

Lease Termination Notice Requirements in Indiana

In Indiana, a tenant is not required to provide notice for fixed end date leases, the lease expires on the last day of the lease (IC 32-31-1-8). Tenants are required to provide notice for the following lease terms:

  • Notice to terminate a month-to-month lease. One-month written notice from the tenant is required (IC 32-31-1-1).
  • Notice to terminate a yearly lease with no end date. Three-months’ written notice from the tenant is required (IC 32-31-1-3).

Delivering Notice in Indiana

The notice can be served by using one of the following methods:

  • Giving a copy to the landlord in person; or
  • Mailing a copy via registered or certified mail with a written acknowledgement of receipt to the landlord’s mailing address.

There are a handful of scenarios where a tenant can legally break a lease in Indiana without penalty. We’ll go through each of them below.

Questions? To chat with an Indiana landlord tenant attorney, Click here

1. Early Termination Clause

Some modern lease agreements may provide specific terms that would allow a tenant to terminate a lease early in exchange for a penalty fee. Read over the lease and look for language that outlines agreed-upon terms for ending the lease before the end of the fixed period, such as the amount of the fee (i.e., equal to 2 month’s rent) and the amount of notice required (i.e., 30 days).

If a lease agreement contains an early termination clause, before executing it and paying the penalty fee, read further to learn about other conditions that, if met, would not require a penalty fee to be paid.

2. Active Military Duty

The Servicemembers Civil Relief Act (SCRA) helps protect active service members who are relocated due to deployment or permanent change of station. The protection begins on the date of entering duty and ends between 30-90 days after the date of discharge.

To break a lease in accordance with the relief act, a tenant must:

  • Prove the lease was signed before entering active duty.
  • Prove they will remain on active duty for at least the next 90 days.
  • Deliver a written notice to the landlord (example, page 2), accompanied by a copy of the orders to deploy / Permanent Change of Station (PCS) or a letter from their commanding officer stating their pending deployment.

With that said, the lease does not terminate immediately. Once the notice is delivered, the earliest the lease can terminate is 30 days after the beginning of the next rent period. For example, if the notice was delivered on the 23rd of March, and the rent is due on the 1st of each month, the earliest the lease can terminate is May 1st therefore, rent is still due for the month of April.

NOTE

In Indiana, the term “servicemember” means a member of the armed forces, commissioned corps of the National Oceanic and Atmospheric Administration (NOAA), commissioned corps of the Public Health Service, and the activated National Guard.

3. Unit is Uninhabitable

Most states have specific health and safety codes that provide minimum standards for rental units, and Indiana is no different.

If those standards are not met, proper notice is given by the tenant and the repairs are still not made within the allowable time period, a tenant would be considered “constructively evicted”. As a result, the obligations of the tenant under the lease are no longer required, given that the landlord has not met their own responsibilities under the Indiana landlord-tenant law.

Landlords must maintain the premises to protect a tenant’s safety and health. Landlords must comply with city and county ordinances and state laws regarding housing conditions. Indiana landlord duties to provide habitable premises include the following examples (Indiana Code 32-31-8-5):

  • Deliver the rental premises to a tenant in compliance with the rental agreement, and in a safe, clean, and habitable condition
  • Comply with all health and housing codes applicable to the rental premises
  • Make all reasonable efforts to keep common areas of rental premises in a clean and proper condition
  • Provide and maintain the following items in rental premises in good and safe working condition, if provided on the premises at the time the rental agreement is entered into:
    • Electrical systems
    • Plumbing systems sufficient to accommodate a reasonable supply of hot and cold running water at all times
    • Sanitary systems
    • Heating, ventilating, and air conditioning systems
    • Elevators, if provided
    • Appliances supplied as an inducement to the rental agreement
  • A heating system must be sufficient to adequately supply heat at all times

4. Landlord Harassment or Privacy Violation

If the action is serious enough, harassment by a landlord or their violation of a tenant’s privacy may be enough justification for relieving a tenant of their obligations of the lease.

  • Landlord Entry. Indiana requires landlords to provide a “reasonable” written or oral notice. No exact amount of time is specified but generally, 24 hours is recommended. (IC 32-31-5-6(g)). If a landlord repeatedly violates the tenant’s rights to privacy or removes windows or doors, turns off utilities, or changes the locks, a tenant would be considered “constructively evicted,” as described above.
  • Changing the Locks. In Indiana, a landlord cannot lock out a tenant and is punishable by two month’s rent or free occupancy (IC 32-31-5-6(c)).

5. Domestic Violence

Indiana provides tenants who are victims of domestic violence with special rental provisions for their protection. If a tenant is confronting a domestic violence situation (this can also be stalking), and wants to move, check with local law enforcement regarding special state laws that may apply in domestic violence situations. Some statutes the state of Indiana provides for victims of domestic violence include:

  • Proof of Status. The landlord is entitled to verify the claim of Domestic Violence status.
  • Lease. The landlord must not terminate a lease, refuse to renew a lease, refuse to enter into a lease, or retaliate against a tenant who is a victim of domestic violence (IC 32-31-9-8).
  • Termination of Lease. A tenant is allowed to terminate a lease with 30 days’ notice and proof of domestic violence status. The written notice required by this section must include specific documents such as:
    • A copy of the civil order for protection, or a restraining order OR a criminal no contact order; AND
    • A copy of a safety plan which must include the date (30 days before the date of which the tenant provides the written notice to the landlord), the plan must be provided by an accredited domestic violence or sexual assault program, and the plan must recommend relocation of the tenant.
  • Locks. Upon request and delivery of a court order, the landlord must change or rekey the locks at the tenant’s expense within 48 hours.
Questions? To chat with an Indiana landlord tenant attorney, Click here

Examples of Insufficient Justification for Lease Breaking in Indiana

The below reasons are generally not enough justification (on their own) to release a tenant from the obligation of their lease term, and as a result, provide no legal protection against penalties for not honoring the lease.

  • They bought a house.
  • They are relocating for a new job or school.
  • They are upgrading or downgrading.
  • They are moving in with a partner.
  • They are moving to be closer to family.

Since state landlord-tenant laws vary, the following reasons may legally permit a tenant to terminate their tenancy early in other states but are not applicable in Indiana:

  • Violation of the Lease Agreement. If a landlord violates the terms of the lease agreement, it may be enough justification to break the lease and relieve the tenant from their own obligations (i.e., illegally raising the rent during the fixed period).
  • Illegal Contract. In some scenarios, a lease agreement may be deemed illegal and as a result, is generally not enforceable.
  • Mandatory Disclosures. Many state and local laws require landlords to disclose documentation, policies, or specific unit information to tenants prior to moving in. Disclosure laws typically impose heavy fines or legal ramifications to landlords if they are not followed. In rare cases, they contain penalty provisions that may allow you to break your lease.
  • Senior Citizen or Health Issue. Some states offer age or health-related lease-breaking arrangements that permit early lease termination.

Breaking a lease for any of the above reasons or in any conditions not previously outlined can have tangible consequences for tenants.

NOTE

Indiana state law does not require landlords to take reasonable steps to re-rent their unit when a tenant breaks their lease.

Tenant’s Right to Sublet in Indiana

If the lease does not prohibit subletting, then a tenant might be in the clear to sublet. However, the lease might contain a clause requiring a tenant to obtain a landlord’s approval prior to subletting. To get the landlord’s approval, a tenant shall send them a letter through certified mail, with a return receipt requested, outlining the terms of the sublet lease agreement. Certified mail is the only proof of delivery that most courts will accept that a tenant has notified the landlord.

The letter should include the following information:

  • Sublet term.
  • Name of proposed subtenant or assignee.
  • The permanent home address of proposed subtenant or assignee.
  • Your reason for subletting or leaving permanently.
  • Your new address during the sublease if applicable.
  • The written consent of any co‑tenant.
  • A copy of the proposed sublease.

If a landlord rejects the request, know that they can only refuse the proposed subtenant based on legitimate factors. The law states that a landlord cannot unreasonably refuse to sublet.

For more information and to get a FREE Indiana sublease agreement click here.

Additional Resources for Indiana Tenants & Landlords: