Indiana lease agreement template

What is an Indiana lease agreement?

An Indiana lease agreement is a legally binding document that captures the terms and conditions under which the tenant will occupy a rental property in Indiana. 

It commits a landlord and a tenant to various different obligations and responsibilities, as well as covering key lease details like the duration, monthly rental payments, security deposit requirements, and restrictions on how the property may be used.

Leasing in Indiana: what you need to know

If you're leasing properties in Indiana, you'll probably already be familiar with the real estate market in the state. But if you aren't, here are a few quick stats to give you a good idea of the landscape you're working with:

• According to Zillow, the median rent for all property types in Indiana is $1,450, which is $650 less than the national median rent
• Statista's research reveals Indiana to be one of the least expensive rental markets in 2023, with states like Hawaii, California, and New Jersey all ranking as the most expensive for apartment leases in the US
• RoofStock estimate that the rental vacancy rate in Indiana sits at around 7 per cent for single-family homes

Which laws in Indiana are relevant to lease agreements?

Indiana lease agreements are primarily governed by the Indiana Code Title 32 and Title 34, which outline the rights and responsibilities of landlords and tenants, security deposit regulations, and eviction procedures. 

However, local ordinances and federal laws such as the Fair Housing Act and the Residential Lead-Based Paint Hazard Reduction Act also play a role in regulating lease agreements in Indiana.

Let's explore some of the key provisions in more detail now.

Indiana Code 32-31-3 (Security Deposit Law)

Indiana's security deposit laws are more generous to landlords than the laws in other states. Here are some main takeaways:

• Limits: Unlike other states, Indiana law doesn't enforce a limit on how much a landlord can charge as a security deposit.
• Deposit return: Landlords must return the security deposit within 45 days after the tenant vacates the property, minus any lawful deductions (such as unpaid rent or repair costs).
• Deductions: Landlords can deduct for unpaid rent, damages beyond normal wear and tear, or breach of the lease agreement. They must provide an itemized list of deductions. This is the case in most states.
• Deposit holding: Unlike some states, Indiana does not require landlords to hold the deposit in a separate, non-personal bank account.

Indiana Code 32-31-8 (Habitability Laws)

The Indiana Code also sets out some specific rules around how landlords are expected to make (and keep) properties in Indiana habitable. Some key points include:

• Landlord’s responsibility: Landlords must provide safe and livable housing, including working heat, water, plumbing, and electrical systems. The property must also comply with health and safety codes.
• Acceptable timeframes: Indiana state law doesn't specify an exact timeframe that repairs need to be completed by, but usually it is under two weeks.

Indiana Code 32-31-6 (Evictions)

• Notice to quit: For both residential and commercial tenants, landlords must provide written notice before initiating eviction, with the period depending on the violation or cause.
• Court proceedings: If the tenant does not vacate or resolve the issue after receiving notice, the landlord must file a formal eviction lawsuit (called an "ejectment action") in court. The tenant has the right to contest the eviction in court.
• Self-help evictions: Similar to most states, it is illegal in Indiana to change locks, remove doors and windows, or limit access to utilities to force an eviction.

What is the purpose of an Indiana lease agreement?

An Indiana lease agreement ensures clarity, fairness, and legal protection, serving as a comprehensive guide to the rental arrangement and fostering a positive landlord–tenant relationship.

These agreements serve several, more specific purposes, too:

• Establishes legal obligations of both landlords and tenants, including compliance with laws.
• Specifies the terms of the tenancy – the duration of the lease, whether fixed-term or month-to-month.
• Provides rent details – the amount, due dates, payment terms, and procedures for late fees and increases.
• Complies with security deposit regulations, detailing the deposit amount, conditions for withholding, and return timelines.
• Clarifies maintenance and repair responsibilities of the landlord and the tenant.
• Sets rules and policies – for example, on pets, smoking, subletting, and conduct – in order to ensure a harmonious living environment.
• Protects tenants from unlawful eviction, making sure that eviction procedures comply with Indiana laws.
• Provides legal recourse – a basis for resolving disputes related to unpaid rent, property damage, or breaches.
• Specifies allowed uses of the property, in compliance with zoning laws.
• Enhances mutual understanding by documenting agreed-upon terms to promote transparency and reduce conflict.

Who manages Indiana lease agreements?

There are several parties typically involved in the creation and execution of a lease agreement in Indiana.

Landlords

Landlords of individual properties often create, negotiate, and enforce lease terms; along with handling rent collection and property maintenance responsibilities. But they should seek legal advice before doing so.

Attorneys

It's often common (and advised) for attorneys to assist with drafting agreements, negotiating, and ensuring legal compliance. These experts can provide legal advice and represent parties in disputes if they arise, too.

Property managers

For larger property portfolios, property management companies manage day-to-day operations, including tenant screening, rent collection, and maintenance. Tenants adhere to lease terms, pay rent, and maintain the property.

Tenants

Businesses and individuals acting as tenants will also have a say in the contract's terms and management. However, they're usually less involved in the drafting processes.

Indiana courts

If the agreement ends sourly, Indiana courts handle legal disputes, eviction proceedings, and enforcement of lease terms. The Indiana Attorney General’s Office also offer guidance on landlord-tenant laws and rights, making it easier to avoid a breach of contract.

Indiana lease agreement use cases

Indiana lease agreements serve various use cases, providing a legal framework for different rental scenarios. Here are some common use cases:

Residential lease agreements

• Long-term rentals – typically one year or more.
• Month-to-month rentals – flexible agreements that allow either party to terminate the lease with proper notice, usually 30 days.
• Student housing – leases tailored for students, often aligning with academic terms.
• Subleasing – allowing tenants to rent out part or all of the property to another individual with the landlord’s permission.

Commercial lease agreements

• Office spaces – renting buildings or suites for business operations.
• Retail spaces – for stores, shops, or boutiques in commercial properties.
• Industrial properties – warehouses, factories, or other industrial facilities.
• Co-working spaces – short-term leases for shared office spaces, often with flexible terms.

Vacation and short-term rentals

• Vacation homes – short-term leases for renting vacation properties, typically for a few days to a few weeks.
• Corporate housing – temporary housing for business professionals, often for a few months.

Room rentals

• Roommate agreements – for renting individual rooms within a larger property, often with shared common areas.
• Boarding houses – for renting rooms in a boarding house setup, usually including shared amenities and services.

What should an Indiana lease agreement template include?

A robust Indiana lease agreement template should encompass:

• ‍Parties involved: Names and contact information of the landlord(s) and tenant(s).‍
• Property details: Address and description of the rental property.‍
• Lease term: Start and end dates of the lease, and type (fixed-term or month-to-month).‍
• Rent details: Amount, due date, payment methods, and late fee policy.‍
• Security deposit. Amount, conditions for return, timeframe, and permissible deductions.‍
• Maintenance and repairs. Responsibilities of the landlord and tenant, and repair request procedures.‍
• Utilities and services. List of included utilities and services, and tenant responsibilities.‍
• Rules and policies. Pet policy, smoking policy, subletting policy, noise rules, and other property-specific rules.‍
• Entry and access. Conditions for landlord entry and notice period.‍
• Termination and renewal. Notice period for termination, conditions for renewal, and early termination procedures.‍
• Legal disclosures. Lead-based paint disclosure and other mandated disclosures.‍
• Signatures. Signature and date lines for the landlord and tenant.‍
• Additional clauses. Any other specific terms or conditions relevant to the property's lease, like conditions around subleasing.‍
• Legal compliance. Statement ensuring compliance with Indiana state laws and local ordinances.

How are Indiana lease agreements usually managed?

Managing Indiana lease agreement templates manually involves several steps to ensure that the agreements are accurately created, executed, and maintained.

1. Preparation

• Collect necessary information about the property, landlord, and tenant(s), including contact details, property description, and lease terms.
• Choose a lease agreement template that complies with Indiana laws and includes all necessary sections.

2. Drafting the lease

• Tailor the template to the specific lease agreement by filling in the details such as names, property address, lease term, rent amount, and other specifics.
• Add any property-specific clauses or policies, such as pet policies, maintenance responsibilities, and utility arrangements.

3. Review and approval

• The landlord or property manager reviews the draft lease to make sure all information is correct and complete. They may choose to have an attorney review the lease to ensure it complies with Indiana laws and covers all necessary legal bases.
• Provide the draft lease to the tenant for their review and questions.

4. Execution

• Make any final revisions based on feedback from the tenant and legal review.
• Arrange for both the landlord and tenant to sign the agreement. This can be done in person or via mail.
• In some cases, it may be necessary or advisable for the document to be witnessed or notarized.

5. Distribution

• Provide signed copies of the lease agreement to both the landlord and tenant. Each party should retain a copy for their records.
• The landlord should securely store the original signed lease agreement.

6. Maintenance and compliance

• Use a calendar or contract management spreadsheet to track important dates, such as lease start and end dates, rent due dates, and renewal or termination notice periods.
• Regularly check to ensure both parties are complying with the terms of the lease. Address any issues or violations promptly.
• As the lease term approaches its end, discuss renewal options with the tenant. Any contract amendments should be documented, signed, and added to the original lease.

7. Record keeping

• Keep a physical or digital file for each lease agreement, including all related documents such as correspondence, notices, and maintenance records.
• Periodically review lease agreements and related files to ensure all documents are up-to-date and in compliance with current laws.

Challenges of managing Indiana lease agreements

Key challenges include:

Regulatory compliance: Staying updated with the frequent changes in rental laws and standards.

Understanding legal jargon: Ensuring that all parties understand the terms without ambiguity, which requires clear and simple language.

Volume management: Handling a large number of leases simultaneously without compromising on attention to detail or legal accuracy.

Manage Indiana lease agreements in Juro

Managing Indiana lease agreements in Juro’s contract management software enables you to streamline the entire process, from creation to execution and beyond.

Contract template automation

Juro enables users to create lease agreements quickly by using templates with pre-approved clauses. This ensures that all agreements are consistent, compliant with Indiana laws, and tailored to specific needs without repetitive manual entry.

Users can insert custom fields to automatically populate tenant names, property addresses, rent amounts, and other variables, reducing the risk of errors and saving time.

Efficient approval workflows

Juro allows users to create automated approval workflows, ensuring that lease agreements pass through the necessary approvals efficiently. This maintains control and compliance while significantly reducing the time spent on manual approvals.

Stakeholders are automatically notified when their approval is required, and the progress of each document can be tracked in real-time, ensuring no step is overlooked.

Mass actions

Juro’s bulk actions feature allows users to sign, send, and manage multiple lease agreements simultaneously. This is particularly useful for property managers handling numerous leases, enhancing productivity and efficiency.

Users can perform batch actions like renewals, amendments, or terminations on multiple agreements at once, simplifying large-scale management tasks.

Data-rich contract repository

All lease documents are stored in a single, searchable repository, making it easy to access any agreement at any time. This central contract repository enhances operational visibility and organization.

Juro keeps track of all versions of a lease agreement, ensuring that the latest version is always accessible and previous versions are stored for reference.

Automated reminders

Juro sends automated alerts and contract reminders for important dates such as contract renewals, rent increase notices, and lease expirations. This helps ensure that deadlines are met and compliance is maintained without manual tracking.

Users can set tasks and reminders for specific actions related to lease agreements, keeping everyone on the same page and preventing oversights.

Benefits of using Juro for lease management

By leveraging these features, real estate businesses can:

• ‍Speed up operations. Automated workflows and bulk operations reduce the time needed to create, approve, and manage lease agreements.‍
• Lower costs. Automation reduces the need for manual intervention, cutting administrative costs and minimizing the risk of errors that could lead to legal issues.‍
• Improve compliance. Pre-approved templates and automated reminders ensure that all lease agreements adhere to legal standards and deadlines are consistently met.‍
• Enhance efficiency. Centralized document storage and seamless integrations streamline access to and management of lease agreements, making the entire process more efficient.

These capabilities help real estate businesses manage lease agreements more effectively, ensuring faster operations, lower costs, improved compliance, and a smoother leasing experience.

Juro’s AI-native contract automation platform empowers all teams to create, agree, execute and manage contracts up to 10x faster than traditional tools. To find out more, hit the button below to book your personalized demo.