Full question:
My son, who is a student, signed an apartment lease to begin 8/09. Plans have changed and he will not be returning to college in the Fall of 09. I called the leasing company to terminate the lease, expecting that the security deposit would be returned when the premises is relet. They told me that they will not return the deposit until 9/2010 when the lease is completely over and they will also be requiring an additional security deposit from the new tenants. Essentially they want my son (and his roommate) to sublet the apartment, thereby keeping them on this lease and responsible for the payment of the rent until the end. The question is: since my son and his roommate have not taken possession of the premises and are giving 7 months notice of cancellation can they still be held liable, under Indiana law, to be responsible until the lease expires?
- Category: Landlord Tenant
- Subcategory: Lease Termination
- Date:
- State: Florida
Answer:
A tenant who terminates a lease early may still be liable for the full term of the lease. However, the landlord has a duty to mitigate damages, meaning they must make reasonable efforts to find new tenants. Any rent received from new tenants will be deducted from the former tenant's damages. In Indiana, when a lease is terminated, the landlord must return the security deposit within forty-five days.
Indiana law does not set a maximum limit on security deposits. If a tenant sublets an apartment, they typically need the landlord's permission and may collect a security deposit as a landlord would. A yearly lease can be terminated with three months' notice, but the landlord must attempt to relet the premises. They cannot unreasonably refuse to find a new tenant.
According to Indiana statutes, upon lease termination, the landlord must return the security deposit minus any amounts owed for unpaid rent or damages, with a written notice provided within forty-five days (IC 32-31-3-12). If the landlord fails to comply, the tenant may recover the full security deposit and reasonable attorney's fees (IC 32-31-3-12(b)).
For further assistance, consider having a local attorney review the lease agreement.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.