Breaking a Lease in Indiana: Landlord/Tenant Guide 2024

Breaking a lease in Indiana presents challenges for landlords and tenants. Tenants who don’t understand their rights and obligations may face legal and financial repercussions. Whether you’re relocating for a job or experiencing issues with your landlord, knowing how to terminate a lease legally is crucial.

We understand that breaking a lease can be stressful. This guide provides essential information about Indiana tenant laws, valid reasons for breaking an Indiana lease agreement, potential penalties, and strategies for a smooth process.

Keep reading to protect your rights and make informed decisions about your lease.

Review Your Lease Before All Else

Reviewing your lease agreement carefully before breaking your lease in Indiana is essential. Many tenants overlook this crucial step, which can lead to unexpected consequences. Your lease agreement should outline any fees or penalties for breaking your lease early.

It’s also important to know what type of lease you have. The type of lease you have often dictates how difficult it is to get out of the lease early. Here’s a quick breakdown of the two most common lease terms:

Month-to-month leases:
Typically, month-to-month leases offer more flexibility for both tenants and landlords. In Indiana, month-to-month leases renew automatically, so you need to plan ahead and give your landlord proper notice before breaking them. Indiana law doesn’t outline a specific notice period for month-to-month leases, but standard best practices suggest that tenants give at least 30 days’ notice.

Fixed-term leases:
Fixed-term leases, such as one-year leases, are more rigid. Breaking a fixed-term lease often incurs penalties, including paying rent payments for the remaining lease term or other fees. In Indiana, tenants must give at least 3 months’ notice before terminating a fixed-term lease (§ 32-31-1-3).

Legal Reasons for Breaking a Lease in Indiana

While Indiana law doesn’t explicitly list all the legal reasons for breaking a lease, it does provide certain protections for tenants. It outlines specific circumstances under which a landlord or tenant may terminate a lease. Here are some of the most common legal reasons:

Uninhabitable Conditions 

Indiana law implies a warranty of habitability, meaning landlords must keep rental units in a habitable condition. If a landlord does not maintain habitable conditions, tenants may be entitled to break the lease without penalty.

Landlord Harassment 

Landlord harassment can include frequent disturbances, threats, or discriminatory behavior. If a tenant can prove landlord harassment, it may be grounds to break the lease without penalty. Such actions create an uninhabitable living environment and violate the tenant’s right to quiet enjoyment.

Domestic Violence or Sexual Assault 

If you are a victim of domestic violence in Indiana, you may have the right to break your lease without penalty. Indiana law recognizes the dangers of domestic violence and provides protections for victims.

Tenants typically must provide landlords with written notice and documentation, such as a restraining order or police report. This documentation will demonstrate that your safety is at risk and that breaking the lease is necessary. Once you’ve provided this information, you can terminate your lease and move to a safer location without facing financial penalties.

Military Deployment

If a tenant is called to active military duty, they may be able to break their lease without penalty per the Servicemembers Civil Relief Act (SCRA). Tenants typically need to provide their landlord with a written notice of their military deployment and proof of their military orders. By doing so, they can terminate their lease and fulfill their military obligations without worrying about broken lease penalties.

Breaking a Lease Without Legal Justification

While specific circumstances allow tenants to break a lease legally, it’s essential to understand that it can have significant consequences without a valid legal reason.

If your reason for breaking the lease isn’t covered in the previous section, like in cases of job relocations or breakups, it likely doesn’t constitute a legal justification. You may be held responsible for the remaining rent, fees, or legal costs by breaking a lease without a legitimate reason.

To avoid the negative consequences of breaking a lease in Indiana, consider the following strategies:

Negotiate with your landlord: Discuss your situation honestly with your landlord and see if you can reach a mutually beneficial agreement. This could involve early lease termination with a smaller fee or a temporary rent reduction.

Find a subtenant: Finding a qualified tenant to take over your lease could be a win-win situation for you and your landlord. Ensure that the subtenant meets your landlord’s criteria, and then work with them to create a legally sound sublease agreement.

Reach a cash-for-keys settlement: A cash-for-keys settlement is an agreement between a landlord and a tenant where the landlord pays the tenant a sum of money in exchange for the tenant vacating the rental property early. This arrangement can benefit both parties, as it avoids the time-consuming and often contentious eviction process. This process is usually more straightforward and faster than finding a subtenant.

Consult with a legal professional: Consult with an attorney if you need clarification on your rights and obligations. They can provide guidance and help you navigate the legal process. Exploring these options allows you to resolve your lease situation without significant financial or legal penalties.

Consequences of Tenants Breaking a Lease in Indiana

If you break a lease in Indiana without a valid legal reason, you may face several consequences:

• Ongoing rent payments: Even if you move out early, you may still be responsible for paying rent until the landlord finds a new tenant.
• Re-renting costs: You could be liable for the costs of finding a new tenant, including advertising fees or credit checks.
• Eviction on your record: Breaking a lease can lead to an eviction on your rental history, making it difficult to find housing in the future.
• Forfeiture of security deposit: Your landlord may withhold all or part of your security deposit to cover unpaid rent or property damage.

It is crucial to explore all options and work with your landlord to find a mutually agreeable solution to avoid negative consequences.

Landlord/Tenant Rights and Responsibilities

Landlords and tenants have specific rights and responsibilities regarding leases and lease-breaking in Indiana.

Landlord Rights:

• Enforce lease terms: Landlords have the right to enforce the lease agreement terms, including rent payments and other obligations.
• Eviction: If a tenant breaches the lease by not paying rent or violating other terms, the landlord has the right to initiate the eviction process.
• Collect a security deposit: Landlords are entitled to retain a security deposit to cover damages to the property or unpaid rent.

Landlord Responsibilities:

• Maintain habitability: Landlords are responsible for maintaining the rental property in a habitable condition, including necessary repairs and upkeep.
• Return security deposit: Landlords must return the security deposit to the tenant, minus any deductions for damages or unpaid rent, within 45 days of the tenant moving out.
• Mitigate damages: In Indiana, landlords must mitigate damages caused by a tenant breaking a lease. They must make reasonable efforts to re-rent the property to minimize the tenant’s financial liability.

Tenant Rights:

• Habitability: Tenants have the right to live in a habitable unit, free from health and safety hazards.
• Quiet enjoyment: Tenants have the right to peaceful enjoyment of the rental property without unreasonable disturbances.
• Privacy: Tenants have the right to privacy within their rental unit.

Tenant Responsibilities:

• Pay rent in full and on time: Tenants are responsible for paying rent on time.
• Maintain property: Tenants are typically responsible for keeping the unit clean and free from damage.
• Lease term adherence: Tenants must follow the terms of the lease agreement, including rules regarding pets, noise, and guests.

Legal Help for Landlords and Tenants

Breaking a lease in Indiana can be complex, so seeking legal counsel is prudent. An attorney can provide expert advice, protect your rights, and guide you through the legal process.

Here are some resources to help both landlords and tenants find legal assistance in Indiana:

• Indianalegalhelp.org: This free and confidential service connects Hoosiers to local resources, including legal aid programs. They can help you find legal assistance in your area.
• Indiana Legal Services (ILS): ILS provides free legal services to low-income individuals, including those facing landlord-tenant issues. They can offer advice, representation, and other legal aid.
• Indiana State Bar Association: The Indiana State Bar has many free legal resources online. It also has an attorney referral service to help find attorneys specializing in landlord-tenant law in the state.

Avoid Lease Breaking with TurboTenant

TurboTenant’s property management software can help landlords reduce the risk of tenants breaking a lease in Indiana by simplifying tenant screening and property management.

Key Features to help you include: 

• Robust tenant screening and rental applications: Screen potential tenants thoroughly with credit and background checks to minimize the risk of unreliable tenants.
• Customizable online lease agreements: Create legally compliant leases tailored to Indiana landlord-tenant laws.
• Efficient repairs and maintenance management: Easily track and manage maintenance requests, ensuring timely repairs and preventing tenant dissatisfaction.
• Automated rent collection: Simplify rent collection with automatic reminders and secure online payments.

Sign up for a free TurboTenant account today to streamline your property management process and protect your investment.

Disclaimer: The information provided here is intended for general knowledge and informational purposes only and does not constitute legal advice. Laws and regulations can vary by jurisdiction and change over time. Consulting with a qualified legal professional to address specific legal questions or concerns is essential.

Breaking a Lease in Indiana FAQs