Indiana Room Rental Agreement
Did you know you can become a landlord without owning an investment property? Many people now rent out a room in their home (a strategy known as “house hacking”) to earn extra income and offset living expenses. Renting a room can be rewarding and may also add a bit of cash to your pocket.
But just because it’s a room in your home doesn’t mean you can skip a room rental agreement. Indiana sets its landlord-tenant laws, outlining what to include, how room rentals work, and how to end the agreement.
Read on to learn everything you need to know about Indiana room rental agreements.
Indiana Room Rental Laws
Each state sets its own landlord-tenant laws to guide the housing process, whether a single-family home, a condo, or a room in your house. These laws cover security deposits, rent payments, evictions, and required disclosures you must share with tenants.
The sections below highlight key information to understand before finalizing your Indiana room rental agreement.
Types of Room Rental Agreements
When creating room rental agreements, Indiana landlords have a few types to choose from.
Verbal agreement: Some landlords may feel a verbal agreement is enough, but too many things can go wrong without clearly written terms. TurboTenant doesn’t recommend verbal agreements and offers simple, printable lease agreements in PDF or digital form for convenience.
Fixed-term lease: A fixed-term lease has a firm end date, often 1 year, and the terms can’t change until the lease ends. While it offers little flexibility, a fixed-term Indiana room rental agreement provides stability and peace of mind.
Month-to-month lease: For more flexibility, Indiana landlords and tenants can choose a month-to-month lease. This type of agreement automatically renews at the end of each month until either party cancels it.
No matter which lease type you choose, you must follow all federal and state landlord-tenant laws. Doing so keeps you compliant and helps prevent problems down the line.
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Required Landlord Disclosures
When signing a new room rental agreement, Indiana landlords must share certain information with tenants as required by state landlord-tenant law. These disclosures include:
1. Lead-based paint: For all units built before 1978, federal law requires landlords to disclose any known presence of lead-based paint or lead-based paint hazards on the property.
2. Smoke detectors: Indiana landlords must provide working smoke detectors on the property and disclose that they are present and functional (IC § 32-31-5-7(a)).
3. Landlord contact info: Landlords must disclose the name and address of the person authorized to manage the property when the tenant signs the lease (IC § 32-31-3-18(a)).
4. Water and sewage disposal services: If applicable, landlords must inform tenants about any provided water or sewage disposal services and list any related fees. The disclosure must also include this statement: “If you believe you are being charged in violation of this disclosure or if you believe you are being billed in excess of the utility services provided to you as described in this disclosure, you have a right under Indiana law to file a complaint with the Indiana Utility Regulatory Commission. You may contact the Commission at (insert phone number for the Commission).” (IC § 8-1-2-1.2).
5. Flood zone disclosure. If the property is in a flood zone, landlords must disclose that information to tenants at move-in (IC § 32-31-1-21).
Security Deposits
Maximum security deposit: Indiana landlords can set any amount for the security deposit when starting a new room rental agreement. The state does not cap the amount.
Security deposit receipt: Indiana law does not require landlords to provide a receipt for the security deposit.
Deduction tracking: If a landlord withholds any portion of the deposit, they must give the tenant an itemized list of charges within 45 days after the lease ends (IC § 32-31-3-12).
Security deposit return: Landlords have 45 days to return the security deposit after the tenant moves out (IC § 32-31-3-12).
Pet deposits: Indiana landlords may collect an additional pet deposit unless the animal is a service animal or emotional support animal.
Rent Payment Regulations
Late rent fees: Indiana law does not cap late rent fees, but they must be reasonable and clearly stated in the lease agreement.
Right to withhold rent: Renters in Indiana cannot withhold rent to cover repair costs. If a landlord fails to meet minimum habitability standards, tenants must take the issue to court.
Grace period: Indiana landlords do not have to offer a grace period for late rent payments.
Pet rent: Landlords may charge pet rent in Indiana, except for service animals or emotional support animals.
Rent Payment Increase Rules
Rent payment increase frequency: Indiana landlords can raise rent as often as they choose, with some limits. In a fixed-term agreement, rent cannot increase during the term unless the lease allows it. For month-to-month leases, landlords must give 30 days’ notice.
Rent payment increase maximum: Indiana does not limit how much landlords can raise rent.
Rent control/stabilization: Indiana has no statewide rent control laws.
Room Rental Agreement Breaches
Failure to pay: An Indiana landlord can issue a 10-day Notice to Pay or Quit when rent is late. The notice must include the following language: “To (insert name of tenant here): You are notified to vacate the following property not more than ten (10) days after you receive this notice unless you pay the rent due on the property within ten (10) days: (insert description of the property here).” (IC § 32-31-1-6).
Lease violations: For a lease violation, the landlord may issue a Notice to Cure or Quit and must give a reasonable amount of time to fix the problem (IC § 32-31-7-7).
Lease abandonment: If a tenant abandons the room before the rental agreement ends, Indiana landlords can hold them responsible for the remaining rent until they find a new tenant.
Self-help evictions: Indiana landlords should always follow the legal eviction process when removing a tenant. Self-help evictions are illegal and should never be attempted (IC § 32-31-5-6(c)).
Ending a Room Rental Agreement
When ending a room rental agreement, Indiana landlords must either let the lease expire or give proper written notice as state law requires.
Month-to-month: Month-to-month rental agreements can be terminated with 30 days of written notice by either the landlord or tenant (IC § 32-31-9-12).
Fixed-term: A fixed-term lease ends on the last day listed in the lease agreement unless the lease includes a valid early termination clause or a legally qualifying condition applies.
Tenant’s right to terminate: A tenant may end a fixed-term room rental agreement early without penalty if they enter active military duty, experience landlord harassment, become a victim of domestic violence, or pass away.
Landlord Room Access Laws
Immediate access: Indiana landlords may immediately enter the tenant’s room in an emergency (IC § 32-31-5-6(f)).
Landlord harassment: If a landlord repeatedly enters the tenant’s room without advance notice, they could be liable for landlord harassment. The tenant may also have grounds to sue for damages (IC § 32-31-5-6(g)).
Advance notice: While Indiana law doesn’t specify an exact timeframe, landlords must give “reasonable” notice before entering the unit (IC § 32-31-5-6(g)).
Agreement Renewal/Termination
Required renewals: Landlords have no obligation to renew a lease once the term ends.
Required notice: Neither the landlord nor the tenant must give notice if they do not intend to renew a fixed-term lease.
Month-to-month considerations: Either party can end a month-to-month lease with 30 days of written notice (IC § 32-31-9-12).
Room Rental Agreement Indiana FAQs
What to include in an Indiana room rental agreement?
An Indiana room rental agreement should include everything in any standard lease agreement. That means contact information for all parties, a description of the property, rent and security deposit amounts, and the rights and expectations for both tenant and landlord.
How do I legally rent out a room?
First, check with your local government to ensure you have all the required permits. Ensure the room is fully habitable and meets all housing and zoning codes. Once you find a tenant, sign a legally compliant lease and you’re all set.
How to make an Indiana room rental agreement?
TurboTenant makes creating a room rental agreement template Indiana landlords can rely on easy. The templates are legally reviewed and customizable to fit your specific needs. Check them out by signing up for a free account today.
