Indiana remains a landlord-friendly state in 2025, with no statewide rent control laws. However, tenants should be aware of their rights and the legal framework governing rent increases. Here’s a detailed breakdown:
1. No Statewide Rent Control
- Indiana does not impose limits or caps on how much landlords can increase rent. Landlords are free to adjust rents to market rates when leases end or with proper notice during month-to-month tenancies.
2. Notice Requirements
- Month-to-Month Leases: Landlords must provide at least 30 days’ written notice before implementing a rent increase.
- Fixed-Term Leases: Rent increases are generally prohibited during the lease term unless explicitly allowed in the lease agreement. For increases effective at renewal, landlords typically must give notice 30 days before the lease ends.
3. Proposed Legislation (Effective July 1, 2025)
House Bill 1162 introduces new controls on rent increases for certain rental units:
- Rent hikes will be capped at the lesser of:
- 5% + the cost-of-living increase, or
- 10% of the lowest rent charged in the prior 12 months.
- Rent can only be increased in two increments per year.
This law aims to balance tenant protections with market flexibility and will require landlords to carefully monitor compliance starting mid-2025.
4. Illegal Rent Increases
Certain practices are prohibited:
- Discrimination: Under the Fair Housing Act, landlords cannot raise rent based on race, religion, gender, disability, or other protected characteristics.
- Retaliation: Rent increases in response to tenant complaints about housing conditions or legal actions are illegal.
5. Tenant Protections
While Indiana lacks robust tenant protections compared to some states, tenants can:
- Review lease agreements carefully for clauses about rent adjustments.
- Contest excessive or unjustified increases by consulting local housing authorities or legal counsel.
- Leverage local ordinances in rare cases where cities like Bloomington impose stricter limits (e.g., a 10% cap on annual increases).
6. Practical Tips for Tenants
- Stay informed about market rates to evaluate whether an increase is reasonable.
- Request written documentation of any proposed rent hike.
- Consider negotiating with landlords for smaller increases or extended leases.
In summary, while Indiana’s laws heavily favor landlords, new legislation in 2025 may introduce modest protections for tenants facing steep rent hikes. Tenants should remain proactive by understanding their lease terms and seeking legal advice if needed.
Sources
- https://www.steadily.com/blog/how-much-can-a-landlord-raise-rent-in-indiana
- https://intempuspropertymanagement.com/what-property-managers-and-landlords-need-to-know-for-2025/
- https://www.steadily.com/blog/rent-increase-laws-regulations-indianapolis-in
- https://legiscan.com/IN/text/HB1162/id/3040249/Indiana-2025-HB1162-Introduced.pdf
- https://www.hemlane.com/resources/indiana-rent-control-laws/