Whether renting out an entire apartment in Fort Wayne or a spare room in your South Bend home, no landlord should go without an Indiana lease agreement. A room rental agreement in Indiana helps you avoid misunderstandings, establish clear terms, and mitigate issues.
In this guide, we’ll cover everything you need to know about an Indiana room rental agreement, including:
- Room rental laws in the Hoosier State
- Different types of room rental agreements
- Mandatory disclosures
We’ll also discuss how property management software can help you create a tech-enabled rental experience that offers convenience, speed, and ease.
Room Rental Laws
Here’s a quick snapshot of the landlord-tenant laws in Indiana we’ll cover in this guide:
- Landlords must provide and maintain a safe, habitable living environment.
- Landlords can’t engage in any form of landlord harassment.
- Landlords must make all required disclosures in your Indiana room rental agreement.
- Landlords can’t enter a tenant’s room without giving them proper notice first.
We’ll go into detail on each of these laws, but first, let’s cover the basics for setting up a room rental agreement in Indiana.
Different Types of Room Rental Agreements in Indiana
Landlords can choose from the following lease agreement formats when renting out a room:
- Verbal agreement: We don’t recommend word-of-mouth agreements because they’re less reliable than written leases.
- Fixed-term lease: If you’re looking for stability and a clear start and end date, we recommend creating a fixed-term lease for 6 months or 1 year.
- Month-to-month lease: “Tenancy at will” agreements are ideal for landlords seeking flexibility. They automatically renew each month, and either party can terminate them at any time.
When choosing your room rental agreement type, consider your relationship with the tenant, the tenancy’s length, and whether you want stability or flexibility.
Required Landlord Disclosures
Include these four mandatory disclosures in your room rental agreement in Indiana:
- Property manager info: Landlords must give tenants the property manager’s name and address (Ind. Code § 32-31-3-18).
- Smoke detectors: State law requires landlords to install smoke detectors and tell tenants how they work (Ind. Code § 32-31-5-7).
- Flood zone: Landlords must inform tenants if their property is located in a flood zone (Ind. Code § 32-31-1-21).
- Lead-based paint: When renting a room in a property built before 1978, landlords must tell tenants about the presence of lead-based paint hazards (42 U.S.C. § 4852d).
Next, let’s review the real estate laws that apply to an Indiana room rental agreement.
Security Deposit Rules
Maximum security deposit: State law doesn’t cap security deposits.
Security deposit receipt: Landlords don’t need to issue a receipt when they collect tenants’ security deposits.
Deduction tracking: Indiana law requires landlords to give tenants an itemized list of deductions in writing within 45 days of move-out (Ind. Code § 32-31-3-12).
Security deposit return: Landlords must return the remaining security deposit balance along with an itemized list of deductions within 45 days of the tenancy’s end date (Ind. Code § 32-31-3-12).
Pet deposits: Indiana law permits landlords to charge a pet deposit, but they must outline it in the room rental agreement.
Rent Payment Rules
Late rent fees: If a landlord clearly defines their late-fee policy in the lease and both parties agree, they may charge a reasonable late fee for rent.
Right to withhold rent: Tenants can’t withhold rent unless the court approves it, or their room rental agreement includes a clause for it.
Grace period: Indiana law doesn’t require landlords to apply a grace period before charging late rent fees.
Pet rent: State law doesn’t regulate pet rent, but landlords can charge a reasonable amount if they outline it in their lease.
Rent Payment Increase Rules
Rent payment increase frequency: Indiana law doesn’t restrict how often landlords can increase rent.
Rent payment increase maximum: When a lease ends, landlords can increase rent by any reasonable amount.
Rent control/stabilization: Indiana law doesn’t mandate rent control policies.
Room Rental Agreement Breaches
Failure to pay: Landlords must give tenants who fail to pay rent at least 10 days’ notice before initiating the eviction process (Ind. Code § 32-31-1-6).
Lease violations: If a tenant breaks the lease, landlords can seek to evict them. However, they must give them proper notice and a reasonable time to fix the issue first (Ind. Code § 32-31-7-7).
Self-help evictions: Indiana law prohibits landlords from interfering with a tenant’s right to possession of the room, including all forms of self-help evictions (Ind. Code § 32-31-5-6).
Terminating a Room Rental Agreement
Month-to-month: Either party must provide 1 month’s written notice to end a month-to-month room rental agreement in Indiana (Ind. Code § 32-31-1-1).
Fixed-term: If either landlords or tenants terminate a fixed-term agreement early, they could face penalties.
Room abandonment: Indiana law treats a room as abandoned if the tenant fails to pay rent or the circumstances indicate the tenant has surrendered possession of the room. In these cases, landlords can legally enter the room (Ind. Code § 32-31-5-6).
Tenant’s right to terminate: In Indiana, no laws permit tenants to end their lease early.
Landlord Access Laws
Immediate access: In emergencies, landlords can enter a tenant’s room without notifying them to address the issue.
Landlord harassment: Landlords can’t disturb tenants by showing up unannounced, entering their rooms without legal notice or justification, or making threats to enter.
Advance notice: Indiana law requires landlords to give tenants reasonable written or oral notice, but it doesn’t set a specific time period. It’s best to give tenants 24 hours’ notice of entry (Ind. Code § 32-31-5-6).
Lease Agreement Renewal and Termination
Required renewals: To continue a room rental agreement in Indiana, both the landlord and the tenant must sign a new contract or agree to an extension.
Required notice: To terminate a month-to-month arrangement, landlords must provide 1 month’s written notice (Ind. Code § 32-31-1-1).
Month-to-month considerations: If a fixed-term lease ends but the tenant stays in the room with the landlord’s consent, the arrangement automatically becomes a month-to-month lease (Ind. Code § 32-31-1-2).
Keep these laws in mind when creating a room rental agreement in Indiana. If you have specific questions, we recommend using landlord software or speaking with a legal professional to stay compliant.
Room Rental Agreement Indiana FAQs
What to include in an Indiana room rental agreement?
Landlords must outline their protocols for rent, security deposit, and utilities. They must also include house rules and all mandatory disclosures.
How do I legally rent out a room?
In addition to complying with state and federal rental laws, use a room rental agreement in Indiana to define the arrangement and avoid disputes.
How to make an Indiana room rental agreement?
Download our PDF template at the top of this guide. It’s printable, quick to fill out, and simple to use.
