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What Is an Indiana Month-to-Month Lease Agreement?

An Indiana month-to-month lease is a short-term rental agreement between the landlord and tenant. The tenancy renews at the beginning of each month. Although a month-to-month rental agreement is technically only 30 days long, the parties may find that the month-to-month tenancy works out so well between them that they decide to make it an indefinite arrangement.

A month-to-month lease must comply with Indiana landlord-tenant law. It should also contain all of the same provisions found in a fixed-term residential lease agreement, including:

  • The amount of the monthly rent and when it is due
  • The amount of the late fee
  • The amount of the security deposit
  • Rent increase
  • Whether subletting the rental property is allowed
  • The occupancy information for the rental unit
  • The parking policy
  • The pet policy
  • The notice period for lease termination for move out
  • How to deliver a written notice
  • Eviction information

What Laws Apply to Indiana Month-to-Month Lease Agreements?

Indiana Code Chapter 32 Article 31 Landlord-Tenant Relations governs month-to-month lease agreements. State law does not limit the amount that a landlord may charge as a security deposit. The landlord must return the security deposit to the tenant within 45 days of the move-out. However, according to §32-31-3-13, the landlord may use part or all of the security deposit to repair damages to the rental property that exceed normal wear and tear, nonpayment of rent, to cover the last payment of rent if it is mentioned in the lease agreement, or to reimburse the landlord for utilities as mentioned by the rental agreement or that were not paid by the tenant. If the landlord uses part or all of the security deposit, they must provide the tenant with a list of itemized deductions and estimated costs for the repairs under §32-31-3-14.

Landlords and property managers must have a thorough understanding of Indiana law and federal law to protect their interest in the real estate they are renting out. They should consider seeking legal advice.

Terminating an Indiana Month-to-Month Lease Agreement

Under §32-31-1-1, the notice period for lease termination of an Indiana month-to-month lease is 30 days. It must be a written notice according to state law.

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