Breaking a Lease in Indiana

Find out when a tenant can legally break a lease in Indiana when they can’t, what options they have if they don’t have a proper cause, and what the consequences are of walking out on a lease agreement. Learn how landlords can break a lease, when they can break one without cause, and how much notice they have to give.

Importance of Fixed Periods in Lease Agreements

Without a fixed period, a landlord generally has the same rights as the tenant to terminate tenancy (with proper notice). In the same way that a landlord lacks long-term security on a month-to-month (or shorter period) lease if a tenant decides to leave, tenants lack the same security if the landlord decides to change the terms (i.e. raise the rent) or end the lease altogether. 

That’s why fixed periods are an important protection for both parties. They’re not just there to act as a restriction to tenants. 

As a result, there are real legal consequences for violating the agreement without proper cause on either side. It’s important to understand when a tenant can get out a lease with a fixed period that hasn’t ended, and when a tenant can’t.

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).

Conditions for Legally Breaking a Lease in Indiana

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.

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 / 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. So 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 (meaning, 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

Every state has 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/fixes 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 (IC 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 your landlord repeatedly violates your rights to privacy or does removes windows or doors, turns off your utilities, or changes the locks, you 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. Violation of 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). Because each lease agreement is different, carefully read over the duties and requirements for both parties to understand if a violation has been made, and whether or not there is language describing how certain violations are to be handled. 

6. Illegal Contract

In some scenarios, a lease agreement may be deemed illegal in the state of Indiana, and as a result, are generally not enforceable. 

  • Over 1-year lease without a description of the property. For a written lease agreement with a fixed period of greater than 1 year to be valid in Indiana, it needs to have a clear description of the leased property.
  • Illegal units. The definition of what constitutes an illegal rental unit can vary by location and isn’t always entirely clear. On the state level, Indiana does not appear to have clear information on what defines a legal rental unit. 

7. Domestic Violence

Many states protect tenants who are victims of domestic violence. If you are confronting a domestic violence situation (this can also be stalking), and want 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 details listed in IC 32-31-9-12(b) & (c).
  • 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 (IC 32-31-9-9 & IC 32-31-9-11).

8. Mandatory Disclosures in Indiana

Many state and local laws require landlords to disclose documentation, policies, or specific unit information to tenants prior to moving in. Since these laws vary from state to state (and sometimes by city or county) it is important to have your agreement looked over by a landlord-tenant attorney in your state to guarantee the correct disclosures are included in your lease. 

Some disclosure laws impose heavy fines or legal ramifications to landlords if they are not followed. Others contain penalty provisions and may allow you to break your lease. If your landlord fails to provide you with a mandatory state or local disclosure speak with an Indiana landlord-tenant attorney to determine what can be done.

Indiana requires that landlords provide the following disclosures to tenants, normally in writing and at the start of the lease:

  • Tenant’s Right to Disclosure of Managers and Agents. A landlord shall disclose and furnish to the tenant in writing at or before the commencement of the rental agreement the names and addresses of the following (IC 32-31-3-18): 
    • A person residing in Indiana who is authorized to manage the dwelling unit.
    • A person residing in Indiana who is reasonably accessible to the tenant and who is authorized to act as agent for the owner for purposes of the processing, receiving and receipting of notices and demands.
  • Smoke Detectors. At the time a landlord delivers a rental unit to the tenant, they must get the tenant to acknowledge in writing that the rental unit is equipped with a functional smoke detector (IC 32-31-5-7). 
  • Flooding Disclosure. If a dwelling unit is in a 100-year flood plain, the landlord must provide notice in the lease agreement (IC 32-31-1-21).
  • Recording of Leases. Any lease longer than 3 years in duration needs to be recorded with the county within 45 days of its execution (IC 32-31-2-1). 
NOTE

The only federally required landlord disclosure pertains to lead-based. Known as Title X, this disclosure is designed to protect families from exposure to lead from paint, dust, and soil. Section 1018 of this law requires the disclosure of known information on lead-based paint and lead-based paint hazards before the sale or lease of housing built before 1978.

9. You or a Co-Tenant Face a Health Crisis

If you, a dependent living with you, or your co-tenant, face a serious physical or mental health issue you may qualify for early lease termination without obligation to pay the entire balance of rent due. Some states offer permitted, health-related lease-breaking arrangements that are age-restricted. Most states require a note from a locally licensed physician and at least 30 days’ notice. Since not all states allow this statute, be sure to check the Indiana Landlord and Tenant Handbook for further information. 

Note About Illegal Retaliation in Indiana

In July of 2019, House Bill 346 (which became § 44-7-24) went into effect providing tenants with protection against landlords that retaliate to actions such as giving the notice to make repairs or reporting to governmental entities about violations in building or housing codes. The bill does not state that these types of illegal retaliation are enough justification for lease termination, but the bill does allow for a sizable penalty against the landlord if they’re found in violation (1 month’s rent + legal fees + $500), which could help offset the costs of penalty fees associated with early termination. 

NOTE

In Indiana, there is no statute on landlord retaliation.

Examples of Insufficient Justification for Lease Breaking

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

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

Tenant’s Options if Legal Justification is Not Met

If the previously stated legal conditions are not met, there are still a few options that a tenant has that could allow for them to not be obligated to pay rent until the end of the fixed period.

Talk with the landlord

Some landlords may be understanding and willing to negotiate with a tenant. Every situation is different, and every landlord is different. A tenant’s best chance at getting a landlord to work with them is, to be honest about the reasons for leaving, to provide as much notice as possible, and to propose possible resolutions that could be mutually beneficial (i.e. by paying 2 month’s rent). 

Aid in finding a new tenant

If the tenant moves out before the end of the fixed period, they are still required to pay rent until the end of the period until a new tenant is found. During that remainder period, the landlord is not required to make reasonable effort to find a new tenant (if they don’t, the previous tenant is not responsible for future rent). 

Therefore, the previous tenant may choose to be proactive and help to find a new tenant on their own, instead of waiting for the landlord to find one. The landlord does not have to accept the newly found tenant if they have reasonable justification (i.e. they have bad credit or rental history), but helping to find a new tenant can only help increase a tenant’s chances of being relieved of future rent.

NOTE

In Indiana, landlords do not need to make reasonable efforts to rerent the unit.

Sublet

If your lease does not prohibit subletting, then you are in the clear to do so. However, your lease might contain a clause requiring you to obtain your landlord’s approval prior to subletting. To get landlord approval you will want to 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 in case you need to prove that you notified your landlord. 

Consequences of Illegal Lease Breaking

If a tenant breaks a lease without mutual agreement from the landlord or without the proper legal justification and does not pay the rent due for the remainder of the fixed period, the tenant faces the following consequences.

  • Loss of security deposit. Usually, at a minimum, a landlord may choose to withhold the security deposit. 
  • Lawsuit. A landlord may sue the tenant for unpaid rent during the fixed period, which if won, could result in the tenant facing a money judgment. That judgment, if not paid on the spot or if terms are not set for a long-term payment plan, could result in the garnishment of the tenant’s wages or bank account.
  • Impact on credit score. While a money judgment won’t show up on a tenant’s credit report (thanks to the National Consumer Assistance Plan), if the landlord chooses to go an alternative route to collecting on unpaid rent by using a debt collection agency, the tenant’s credit score could be severely impacted.
  • Difficulty in finding future housing. Whether or not a tenant provides the landlord’s name & contact information themselves when looking to buy or rent in the future, a background check will most likely provide the future landlord or mortgage lender with that information. That previous landlord could provide a very negative reference.

Read About Breaking a Lease in Other States

All icons labeled for free use from FlatIcon.