Can my son still be held liable until the lease runs out even with a 7 month notice?

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: 04/07/2025
• State: Florida

Answer:

A tenant who terminates a lease agreement early may be held liable for the full term of the lease. However, the landlord has a duty to mitigate damages. This means the landlord must make reasonable efforts to secure new tenants. The rent received from the new tenants will be deducted from the damages owed by the former tenant who terminated te lease early. In Indiana, when a lease is terminated, the landlord must return the security deposit within 45 days.

Indiana statutes don’t provide a maximum dollar limit on the security deposit. Generally, when a person sublets an apartment, it needs to be with the landlord’s permission, and that person stands in the position of a landlord to the sublessee and may collect a security deposit as a landlord would.

As previously stated, a yearly lease may be terminated by giving three months’ notice, but the landlord has a duty to mitigate damages by reletting the premises. The landlord may not unreasonably refuse to relet the premise to a new tenant. I am unable to determine the landlord tenant relationship envisioned without seeing the document involved and am prohibited from giving legal advice. I suggest having a local attorney review the document before it is signed.

The following is an Indiana statute:

IC 32-31-3-13 A security deposit may be used only for the following
purposes:

A security deposit may be used only for the following purposes:

(1) To reimburse the landlord for actual damages to the rental unit or
any ancillary facility that are not the result of ordinary wear and tear.

(2) To pay the landlord for:

(A) all rent in arrearage under the rental agreement; and

(B) rent due for premature termination of the rental agreement by the
tenant.

(3) To pay for the last payment period of a residential rental agreement
if a written agreement between the landlord and the tenant stipulates that
the security deposit will serve as the last payment of rent due.

(4) To reimburse the landlord for utility or sewer charges paid by the
landlord that are:

(A) the obligation of the tenant under the rental agreement; and

(B) unpaid by the tenant.

The following are IN statutes:

IC 32-31-1-3 A tenancy from year to year may be determined by a notice....

A tenancy from year to year may be determined by a notice given to the
tenant not less than three (3) months before the expiration of the year.

IC 32-31-3-12 (a) Upon termination of a rental agreement, a landlord....

(a) Upon termination of a rental agreement, a landlord shall return to
the tenant the security deposit minus any amount applied to:

(1) the payment of accrued rent;

(2) the amount of damages that the landlord has suffered or will
reasonably suffer by reason of the tenant's noncompliance with law or the
rental agreement; and

(3) unpaid utility or sewer charges that the tenant is obligated to pay
under the rental agreement;

all as itemized by the landlord with the amount due in a written notice
that is delivered to the tenant not more than forty-five (45) days after
termination of the rental agreement and delivery of possession. The
landlord is not liable under this chapter until the tenant supplies the
landlord in writing with a mailing address to which to deliver the notice
and amount prescribed by this subsection. Unless otherwise agreed, a tenant
is not entitled to apply a security deposit to rent.

(b) If a landlord fails to comply with subsection (a), a tenant may
recover all of the security deposit due the tenant and reasonable
attorney's fees.

(c) This section does not preclude the landlord or tenant from recovering
other damages to which either is entitled.

(d) The owner of the dwelling unit at the time of the termination of the
rental agreement is bound by this section.