New Indiana Landlord Laws: What Property Owners Need to Know

Indiana's rental property landscape continues to evolve with new legislation affecting landlords, property managers, and tenants. Understanding these changes is crucial for maintaining compliance and protecting your investment properties across Indianapolis and surrounding areas.

Key Legislative Changes for 2024

Enhanced Security Deposit Regulations

Effective January 1, 2024, Indiana has implemented stricter guidelines for security deposit handling:

• Maximum deposit limit: Cannot exceed 1.5 times monthly rent (previously no limit)
• Return timeline: Must return deposits within 45 days (reduced from 60 days)
• Interest requirements: Deposits over $500 must earn interest if held longer than 6 months
• Documentation standards: Detailed move-in/move-out inspection reports now mandatory

For Carmel and Fishers properties where rents often exceed $2,000/month, this change significantly impacts cash flow management and deposit handling procedures.

Expanded Tenant Privacy Rights

New privacy protections strengthen tenant rights regarding property access:

• Notice requirements: Minimum 48-hour written notice for non-emergency inspections
• Reasonable hours: Access limited to 8 AM - 6 PM unless tenant agrees otherwise
• Emergency definitions: Clearer guidelines on what constitutes emergency access
• Tenant remedies: Enhanced penalties for landlords who violate privacy rights

Updated Eviction Procedures

Significant changes to eviction processes aim to balance landlord and tenant rights:

• Extended cure periods: Tenants now have 10 days to cure non-payment (up from 7 days)
• Mandatory mediation: Required for disputes under $5,000 in Marion County
• Sealed records: Eviction records sealed after 3 years if no subsequent filings
• Attorney representation: Enhanced right to counsel for low-income tenants

Fair Housing Updates and Enforcement

Source of Income Protection

Indiana now prohibits discrimination based on lawful source of income, including:

• Housing Choice Vouchers (Section 8)
• Veterans Affairs Supportive Housing (VASH) vouchers
• Social Security and disability benefits
• Child support and alimony payments

This particularly impacts high-demand areas like Broad Ripple and Fountain Square, where voucher holders seek quality housing options.

Criminal History Screening Changes

New guidelines for criminal background checks include:

• Look-back periods: Cannot consider convictions older than 7 years for most offenses
• Individualized assessment: Must consider rehabilitation evidence and housing stability
• Disclosure requirements: Clear written policies on criminal history evaluation

Maintenance and Habitability Standards

Enhanced Habitability Requirements

Stricter standards for rental property conditions include:

• Temperature standards: Must maintain 68°F minimum during heating season
• Mold prevention: Proactive moisture control and remediation requirements
• Lead paint disclosure: Enhanced notification for pre-1978 properties
• Smoke detector compliance: Updated requirements for interconnected systems

Repair and Maintenance Timelines

New response requirements for maintenance requests:

• Emergency repairs: 24-hour response for health/safety issues
• Essential services: 72 hours for heat, water, electrical problems
• Non-essential repairs: 14 days for cosmetic or convenience issues
• Tenant remedies: Right to repair and deduct for landlord non-compliance

Compliance Checklist for Property Owners

Immediate Action Items

• ✅ Review and update lease agreements to reflect new deposit limits
• ✅ Implement 48-hour notice procedures for property inspections
• ✅ Update tenant screening policies for source of income compliance
• ✅ Review criminal background check procedures and timelines
• ✅ Ensure all properties meet enhanced habitability standards

Ongoing Compliance Requirements

• 📋 Maintain detailed inspection documentation
• 📋 Track security deposit interest calculations
• 📋 Monitor maintenance response times
• 📋 Stay updated on local ordinance changes in Indianapolis and surrounding municipalities

Local Ordinance Considerations

Beyond state law, several Indianapolis-area municipalities have enacted additional requirements:

Marion County Specific Rules

• Rental registration: Annual registration required for all rental properties
• Inspection programs: Mandatory inspections every 3 years
• Just cause eviction: Enhanced tenant protections in certain areas

Suburban Municipality Variations

Cities like Carmel, Westfield, and Noblesville may have additional requirements for:

• Occupancy limits and parking requirements
• Property maintenance standards
• Short-term rental regulations
• Business license requirements

Risk Management and Best Practices

Documentation is Key

Proper documentation protects against legal challenges:

• Photo documentation: Detailed move-in/move-out condition reports
• Communication records: Written records of all tenant interactions
• Maintenance logs: Detailed repair and maintenance history
• Legal notices: Proper service and documentation of all notices

Professional Support Systems

Successful property management requires professional support networks:

• Legal counsel: Qualified real estate attorney relationships
• Property management: Professional management company partnerships
• Maintenance teams: Licensed, insured contractor networks
• Insurance coverage: Comprehensive landlord insurance policies

Staying compliant with evolving Indiana landlord-tenant laws requires ongoing attention and professional expertise. Property owners who proactively address these requirements protect their investments while providing quality housing for Indianapolis-area tenants.