Renting Out Your Property in Indiana: A Landlord's Guide

Before renting your property, familiarize yourself with Indiana's landlord-tenant laws, particularly the Indiana Code Title 32, Article 31 (Landlord-Tenant Relations). This includes understanding your rights and responsibilities regarding security deposits, maintenance, evictions, and tenant rights. The Indiana Legal Help website and the Indiana Housing & Community Development Authority offer resources for landlords.

Create a comprehensive rental application to screen potential tenants. In Indiana, you can request information about income, employment, rental history, and references. You may also conduct credit and background checks with the applicant's consent. Ensure your screening criteria comply with Fair Housing laws, which prohibit discrimination based on protected characteristics such as race, color, religion, sex, disability, familial status, or national origin.

Create a written lease agreement that complies with Indiana law. Include terms regarding rent amount, due date, lease duration, security deposit, maintenance responsibilities, and other important provisions. Indiana does not have many specific requirements for lease content, but certain provisions (like waiving rights to a jury trial) may be unenforceable. Consider having an attorney review your lease to ensure compliance with state law.

Create a detailed checklist to document the condition of the property before the tenant moves in and after they move out. This will help determine if any damage occurred during the tenancy and whether deductions from the security deposit are justified. Take photos or videos to supplement the written checklist. In Indiana, this documentation is crucial if you need to justify security deposit deductions.

For properties built before 1978, federal law requires landlords to disclose known information about lead-based paint and lead-based paint hazards before leases take effect. Provide tenants with an EPA-approved pamphlet on identifying and managing lead-based paint risks. Keep signed acknowledgments for at least three years from the beginning of the tenancy.

In Indiana, landlords must provide a written receipt for security deposits if requested by the tenant. It's best practice to provide this receipt automatically. Indiana law limits security deposits to an amount not exceeding the tenant's monthly rent, unless there are additional costs like pet deposits or other fees. Security deposits must be returned within 45 days after the tenant moves out, along with an itemized list of any deductions.

Create a document outlining house rules and regulations that tenants must follow. This may include policies on noise, guests, smoking, pets, parking, trash disposal, and maintenance requests. Ensure these rules are reasonable and don't violate tenant rights under Indiana law. Provide these rules to tenants before they sign the lease.

Indiana law requires landlords to provide reasonable notice before entering a tenant's unit, except in emergencies. While the law doesn't specify the exact notice period, 24 hours is generally considered reasonable. Create a form to notify tenants of your intent to enter the property for inspections, repairs, or showing the unit to prospective tenants.

Check with your local municipality to determine if rental property registration is required. Some Indiana cities and counties require landlords to register their rental properties and pay a fee. For example, Indianapolis requires registration of all rental properties. Failure to register can result in fines.

Determine if your local jurisdiction requires specific permits or inspections for rental properties. Some municipalities in Indiana require rental properties to undergo safety inspections before they can be leased. Contact your local housing or building department to understand the requirements in your area.

Obtain landlord insurance (also called rental property insurance) to protect your investment. Standard homeowners insurance typically doesn't cover rental activities. Landlord insurance generally covers the building, your liability, and sometimes lost rental income. Consider requiring tenants to obtain renter's insurance as part of your lease agreement.

Research the tax implications of becoming a landlord in Indiana. Rental income must be reported on your federal and state tax returns. However, you can deduct certain expenses such as mortgage interest, property taxes, insurance, maintenance, and depreciation. Consider consulting with a tax professional to maximize your deductions and ensure compliance with tax laws.

Set up a reliable system for collecting rent. Indiana law doesn't specify acceptable payment methods, so you can accept checks, electronic payments, or other methods as agreed upon in the lease. Clearly communicate to tenants when rent is due, grace periods (if any), and late fees. Note that Indiana doesn't cap late fees, but they must be reasonable and specified in the lease.

Develop a system for handling maintenance requests and emergencies. Indiana landlords must maintain rental properties in a habitable condition, including functioning plumbing, heating, and electrical systems. Establish procedures for tenants to report maintenance issues and timeframes for addressing them. Keep records of all maintenance requests and repairs.

Understand the legal process for eviction in Indiana. Landlords must have legal cause (such as non-payment of rent or lease violations) and must follow specific procedures, including proper notice periods. Self-help evictions (changing locks, removing belongings, shutting off utilities) are illegal in Indiana. Court-ordered evictions are the only legal way to remove a tenant.