Indiana Sublease Agreement
An Indiana sublease agreement is a legal contract that allows a tenant (the sublessor) to rent out all or a portion of their leased property to another party (the sublessee) in exchange for regular payments. This agreement outlines the terms and conditions under which the sublessee will occupy the rental unit.
Indiana Sublease Agreement
Right to Sublet
In Indiana, tenants must obtain explicit written permission from their landlord to sublet their rental property. The original lease agreement will dictate whether subletting is allowed. If the lease does not address subleasing, landlord approval is likely necessary. It is advisable to use a Landlord Consent Form to document this permission in writing.
Standardized Indiana Sublease Agreements
A typical Indiana sublease agreement includes several key components:
- The Names of the Parties: Identification of the original tenant (Sublessor) and the new tenant (Sublessee).
- Rental Unit Location: The address of the rental unit as per the original lease.
- Term: The start and end dates of the sublease.
- Rent: The amount of rent, payment schedule, and payment method.
- Master Lease Inclusion: A copy of the original lease (Master Lease) attached, with any exceptions clearly stated.
- Security Deposit: There is no limit on the amount a landlord can collect for a security deposit in Indiana, which is held by the Sublessor.
- Return of Security Deposit: Landlords have 45 days to return any unused portion of the security deposit after the tenant moves out.
- Inventory of Included Items: A list of items included in the rental unit (e.g., furniture, appliances).
- Lead-Based Paint Notice: Required if the rental unit was built before 1978.
- Authorized Occupants: Identification of new tenants and any policies regarding short-term guests.
- Disputes: Procedures for resolving disputes, potentially including mediation or arbitration.
- General Conditions: A statement that the sublease contains all agreements and can only be modified in writing.
- Liability: The Sublessee is liable for damages, while the Sublessor retains ultimate responsibility to the landlord.
- Utilities: Specification of which utilities are paid by the Sublessee and which by the Sublessor.
- Smoking Policy: Designation of smoking areas if applicable.
- Landlord’s Consent: Description of how the landlord’s consent is obtained.
- Signature: Signatures and dates from the Sublessor, Sublessee, and any Co-Sublessors or Co-Sublessees.
Tax Implications of a Sublease
In Indiana, subleases that are considered short-term rentals (less than 30 days) are subject to specific taxes:
- 7% State Sales Tax
- Innkeeper’s Tax: This varies by county, with rates ranging from 2% to 10%.
County innkeeper’s taxes are remitted to the Indiana Department of Revenue, which provides detailed information about specific county rates.
Legal Framework
Indiana does not have specific laws regarding a tenant’s right to sublet; this is determined by the lease agreement. The landlord-tenant relationship is governed by Title 32, Article 31 of the Indiana Code (Landlord-Tenant Relations). Security deposits must be returned within 45 days of the end of the sublease. Additionally, sublessors must provide ten days’ written notice to subtenants for rent payment or eviction, and thirty days’ notice for non-renewal of the sublease or original lease.
Statutes
- Ind. Code § 32-31-1-1 – Determination of estates at will
- Ind. Code § 32-31-1-3 – Determination of year to year tenancy
- Ind. Code § 32-31-1-6 – Rent; refusal or neglect to pay
- Ind. Code § 32-31-1-8 – Notice to quit; when not necessary
- Ind. Code § 32-31-1-21 – Disclosure of structure in flood plain
- Ind. Code § 32-31-3-12 – Return of deposits; deductions; liability
- Ind. Code § 32-31-3-13 – Use of deposits
- Ind. Code § 32-31-3-14 – Notice of damages; refund of remaining deposits
- Ind. Code § 32-31-3-15 – Remittance of full deposit
- Ind. Code § 32-31-3-16 – Liability for withheld deposits
- Ind. Code § 32-31-4-2 – Liability; abandoned property; court order allowing removal by landlord
- Ind. Code § 32-31-5-4 – Written notice required to modify rental agreement
- Ind. Code § 32-31-5-5 – Tenant’s personal property
- Ind. Code § 32-31-5-6(c) – Landlord prohibited from interfering with access, possession, or essential services; unit entry by landlord
- Ind. Code § 32-31-5-6(e) – Landlord prohibited from interfering with access, possession, or essential services; unit entry by landlord
- Ind. Code § 32-31-5-6(f) – Landlord prohibited from interfering with access, possession, or essential services; unit entry by landlord
- Ind. Code § 32-31-5-6(g) – Landlord prohibited from interfering with access, possession, or essential services; unit entry by landlord
- Ind. Code § 32-31-8-5 – Landlord Obligations
- Ind. Code § 32-31-7-5 – Tenant Obligations
- Ind. Code § 32-31-7-6 – Condition of rental premises upon termination of occupancy
- Ind. Code § 32-31-7-7 – Landlord’s cause of action to enforce tenant obligations
- Ind. Code § 32-31-3-18 – Disclosure of Managers and Agents
- Ind. Code § 32-31-5-7 – Written acknowledgement by tenant
- Ind. Code § 32-31-2-1 – Necessity of recording
- Ind. Code § 32-31-9-8 – Lease protections; prohibition of retaliation by landlord
- Ind. Code § 32-31-9-12(b) & (c) – Termination of rental agreements by protected individuals; written notices; liability
- Ind. Code § 32-31-9-9 – Change of lock requirements
- Ind. Code § 32-31-9-11 – Reimbursement for lock changes; key requirements
- Ind. Code § 33-28-3-4(b)(1) – Jurisdiction of small claims docket
- Ind. Code § 33-28-3-4(b)(1) – Jurisdiction of small claims docket
- Ind. Code § 24-4.5-7-202 – Fee for dishonored check, electronic funds transfer, or debit authorization; limits on lender’s presentment of check or debiting of account
FAQs
Yes, in Indiana, tenants must obtain explicit written permission from their landlord to sublet their rental unit. If the lease does not explicitly allow subletting, the landlord has the right to deny the request.
An Indiana sublease agreement typically includes the names of the parties, rental unit location, term of the sublease, rent details, security deposit information, and a lead-based paint notice if applicable. It should also outline authorized occupants, liability, and how disputes will be resolved.
Short-term rentals in Indiana, defined as rentals for less than 30 days, are subject to a 7% state sales tax and may incur additional county innkeeper’s taxes, which vary by location. It’s important to check local regulations for specific tax rates.
If a subtenant damages the property, the original tenant (sublessor) is responsible for resolving the issue. The sublessor remains liable for any damages as stated in the original lease agreement.
In Indiana, landlords must return any unused portion of the security deposit within 45 days after the tenant moves out. This applies to both the original tenant and the subtenant.
Yes, even if a landlord gives permission to sublet, they retain the right to reject a subtenant based on qualifications such as income or rental history. It’s important for tenants to ensure their subtenant meets the landlord’s criteria.
To obtain landlord consent for a sublease in Indiana, tenants should submit a written request that includes details about the proposed subtenant. If the landlord’s consent is not included in the original lease, it is advisable to use a Landlord Consent Form to formalize the approval.
Yes, Indiana law allows landlords to designate their properties as non-smoking areas. If smoking is restricted, the sublease should clearly state any designated smoking areas.