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  1. #1
    Join Date
    Sep 2018
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    Default What Penalties May a Landlord Include in a Lease for Early Termination

    My question involves landlord-tenant law in the State of: Indiana

    Husband and I are breaking our lease due to his illness (we need to live closer to my job, so that I can respond faster to emergencies). Found a suitable rental soon after renewing current lease. Our current lease stipulates that, if we break our lease, we forfeit our damage deposit and must pay $75 for the number of months remaining in the lease (lease was renewed August 1, 2018). I was aware of the "$75 a month" clause, but didn't realize that we would also lose our deposit; just noticed it after digging out the lease while packing.

    I assume there is no recourse at this point, since we signed the lease and therefore 'agreed' to the penalties for breaking our lease, but it seems a little like double-dipping -- particularly if landlord rents our current unit right away (and with there being a housing shortage in our area, so I'm sure it will be rented again in short order).

    Can anyone advise if losing our deposit on top of a monthly fee is legal in the State of Indiana? I have Googled it, but can't seem to find anything that addresses both loss of damage deposit and the 10-month penalty fee.

    Thank you for any insight.

  2. #2
    Join Date
    Oct 2016
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    4,301

    Default Re: Is Landlord Double-Dipping (Indiana)

    I did an admittly short search but I can't find anything in Indiana law that would ban you from giving up your rights to your deposit back via contract.

  3. #3
    Join Date
    Oct 2006
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    16,474

    Default Re: Is Landlord Double-Dipping (Indiana)

    The 75.00 a month fee seems really unique.

  4. #4
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    Default Re: Is Landlord Double-Dipping (Indiana)

    I assume the original rent was more than $75 per month. And the OP has a contract that she owes the rent amount for the term of the lease so it is probably a pretty good deal.

  5. #5
    Join Date
    Sep 2018
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    Default Re: Is Landlord Double-Dipping (Indiana)

    Quote Quoting PayrolGuy
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    I assume the original rent was more than $75 per month. And the OP has a contract that she owes the rent amount for the term of the lease so it is probably a pretty good deal.
    The rent is $700 per month. I guess in theory we could come out ahead ($75 x 10 months = $750 owed)...he could charge us the full rent for every month not rented, and then drag his heels to find a new tenant. I'm just a little miffed that we also lose our $650 deposit. If he ends up renting the unit right away, he gets a bit of a windfall!

  6. #6
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    Oct 2006
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    Default Re: Is Landlord Double-Dipping (Indiana)

    Quote Quoting sferrell
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    The rent is $700 per month. I guess in theory we could come out ahead ($75 x 10 months = $750 owed)...he could charge us the full rent for every month not rented, and then drag his heels to find a new tenant. I'm just a little miffed that we also lose our $650 deposit. If he ends up renting the unit right away, he gets a bit of a windfall!
    He would actually have a duty to mitigate damages which means that he could not keep collecting full rent from you and dragging his heals finding a new tenant.

    I agree that if he rents the unit right away he is going to get a bit of a windfall...750.00 in the 75.00 per month fees and 650.00 for your security deposit. However, that is only two month's rent and a two month's rent lease break fee is not at all unusual in Indiana. However he will at least spend a bit of money finding a new tenant and preparing for one.

  7. #7
    Join Date
    Sep 2018
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    Default Re: Is Landlord Double-Dipping (Indiana)

    Quote Quoting llworking
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    He would actually have a duty to mitigate damages which means that he could not keep collecting full rent from you and dragging his heals finding a new tenant.

    I agree that if he rents the unit right away he is going to get a bit of a windfall...750.00 in the 75.00 per month fees and 650.00 for your security deposit. However, that is only two month's rent and a two month's rent lease break fee is not at all unusual in Indiana. However he will at least spend a bit of money finding a new tenant and preparing for one.
    Okay, that makes sense and seems reasonable in that light. Thank you. One follow-up question, though: since he's retaining the deposit, am I still obliged to thoroughly clean the place after we leave? We did no damage whatsoever, and I have given everything a light cleaning but feel a little less inclined to break my neck making it sparkle since there will be no monetary gain from it. Thoughts?

    Many thanks again.

  8. #8
    Join Date
    Sep 2005
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    Default Re: Is Landlord Double-Dipping (Indiana)

    Quote Quoting sferrell
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    One follow-up question, though: since he's retaining the deposit, am I still obliged to thoroughly clean the place after we leave?
    Your agreement to forfeit your deposit if you break your lease does not immunize you from being liable for damages. Whether or not your landlord would have a claim for damages or other collectable costs in an amount less than the amount of your security deposit, or whether the security deposit would still be applied to any such charges, will depend upon the exact language of the lease.

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