A residential lease agreement is a legal arrangement between a tenant and landlord. Typically, landlords understand the benefit of having one because it helps each party learn what's expected of them during the term.
While it can protect you against legal issues and ensure that you're taken care of, a residential lease agreement also tells prospects what they should know about your property. You can craft it to meet your needs, but it must abide by the rental laws in Indiana.
The following page outlines what the lease agreement should include. Plus, you learn about using property management software to streamline the process.
Indiana Lease Agreement
Simply put, a lease is the contract that a landlord and tenant sign. It documents the rules associated with the residential property, including security deposits, monthly rent amounts, and more.
Typically, the potential tenant fills out a rental application first to determine if they're a suitable candidate.
Generally, an Indiana commercial lease agreement is similar and is also binding.
What to Include
Typically, an Indiana lease agreement should include the rules the tenant must abide by while living on the premises. As the landlord, you should focus on these:
No state law in Indiana defines a grace period or due date for when the tenant must pay rent to the landlord.
Therefore, monthly rent amounts should be listed in the lease before either party enters into a contract.
If rent is not paid on time, there's no set percentage or dollar amount that the state has fixed for late fees. Landlords can charge what they see fit, though it should be listed in the agreement.
There's no security deposits maximum amount landlords can charge a tenant, though it should be listed in the agreement.
The landlord must deliver the entire security deposit amount back to the tenant within forty-five (45) days of the end of the term. If any deductions were needed for unpaid rent, property damage, and more, the landlord must provide an itemized list of the money subtracted with the remainder of the deposit.
Lease Termination and Eviction Information
Generally, it's best to include information about termination and eviction in the agreement. Indiana tenants can terminate early if they give a three-month notice for monthly terms and a 30-day notice for weekly terms.
Likewise, landlords can terminate the agreement through eviction if the tenant:
- Fails to pay rent
- Violates terms of the contract (damages the property, smokes in non-smoking spots, has pets without proper permission, etc.)
- Conducts illegal activity (using/distributing/creating drugs, prostitution)
Right to Entry
State law doesn't offer a specific time frame, but it does say the landlord has to provide reasonable notice before accessing a leased property.
Since there's no state law in place, a 24-hour notice is often considered appropriate for any rental unit in Indiana.
Build Your Own
These are the required disclosures that all Indiana landlords must provide to the tenant of a rental unit within a property:
- Name/Address of Landlord - Indiana law requires a line of communication between the tenant and landlord for important notices. A landlord must offer contact information with the lease to the person residing on the property.
- Flood Zone Disclosures - This pertains to any rental property located in a flood plain. The landlord of the dwelling unit must disclose flood risks in the residential lease agreement. This applies whenever the lowest floor of a building falls at/below the specified 100-year frequency flood elevation.
- Lead-based Paint - Federal law requires all homes in the US built before 1978 to include lead-based hazards. The landlord must attach a disclosure form to the lease after filling it out. They must also offer the tenant a pamphlet describing the dangers. From there, they should provide additional records about the property.
- Smoke Alarms - While not technically a disclosure, landlords of a property must offer an operational smoke detector and get a written statement from the tenant showing that it's there and working.
Many times, a landlord thinks they must hire licensed attorneys to deal with an Indiana rental lease for a new tenant.
However, property management software like DoorLoop is highly beneficial. With a free form or two, you can craft an Indiana rental application to check a tenant's credit before letting them move into the property.
Plus, you can craft an Indiana sublease agreement, which requires a landlord's consent. This document states that another person can live on the property while the current tenant lives elsewhere.
Request a demo with DoorLoop today.
Electronic lease agreements are more popular than ever, and signing them quickly is a must.
With DoorLoop, you can turn your lease form (or any other file) into a template that you can reuse, autofill with your tenant's information, and securely send via your tenant portal for eSignature.
DoorLoop also makes it easy to find new tenants by listing your vacant units on Zillow, Trulia, Hotpads, Apartments.com, and more. You can also find the best tenants by screening your prospects in seconds through DoorLoop. The best part is, paper applications and leases are a thing of the past! Your tenants can fill out their rental application online and be screened (and selected!) in seconds.
For more information about DoorLoop, learn more or schedule a free demo.
Knowing what to include in your rental agreement protects you and your tenant. You're not bombarded with questions that could easily be answered in the lease and have legal recourse if the tenant does something wrong.
DoorLoop can help you keep things organized and create agreements in seconds. Plus, you can screen tenants effortlessly to ensure you get the best people for your premises.
How long should a rental agreement be?
An Indiana rental lease duration can be up to three years. Leases longer than this must meet other requirements. Therefore, the landlord doesn't set their own lease term options.
Are lease agreements legally binding?
Yes, a rental contract is legal and binding as long as the tenant and landlord agree and sign it.
Can lease agreements automatically renew?
After the lease term ends, a landlord and tenant could choose to automatically renew the rental contract.