Unliveable Conditions: Can Indiana Renters Withhold Rent?
The short answer is NO. Under Indiana law that heavily favors landlords if a landlord’s property does not meet codes, the tenant still must pay rent, even if repairs are not made by the landlord after written notice is provided. If tenants withhold even a dollar from rent, they can be evicted.
By: Alex Slabosky, Policy & Advocacy Committee Co-Chair, Greater Indianapolis Multifaith Alliance
What are the Indiana State Laws Around Habitability?
Indiana is one of 49 states with a warrant of habitability which, in theory, dictates that landlords must provide safe and decent housing units for tenants. Currently, Hoosier tenants dealing with mold, lack of heating/cooling, rodent infestation, and other unsafe and unliveable conditions have little to no ability to remedy these issues in a meaningful way. Renters must contend with negligent landlords, unwilling to fix these problems. These landlords still demand full payment of rent despite the deficiencies. Here are two accounts of how these issues and the dynamic between renters and landlords leave many Hoosiers unsafe and voiceless:
Bruce Garrison, a GIMA member, documents in his report the unlivable conditions tenants face at the Lakeside Pointe Apartments
IndyStar reporter Ko Lyn Cheang's article, highlights how Indiana law favors landlords. Many also retaliate when tenants complain to authorities.
Under Indiana law, if a landlord's property fails to meet codes, the tenant must still pay rent. It does not matter if a tenant provides written notice documenting a landlord's refusal to make the repairs. If a tenant withholds even a dollar from rent, they can be evicted.
Is there a solution for Indiana Renters?
Yes, Indiana could create rent escrow accounts. Many states, such as Indiana's neighbor Ohio, have statutes that allow courts the right to develop rent escrow accounts. These accounts enable tenants who have habitability issues to pay their rent to the account instead of the landlord. Only after completing the repairs do landlords receive the rent payments from the escrow account. The rent escrow account can only be utilized by tenants who meet three conditions.
Documented written notice to the landlord of the repairs needed
Given a reasonable timeline for remedy
Their rent is up to date.
It is a solution that protects both tenants and landlords from bad actors.
What is our role as GIMA members, advocates, and renters?
An article in the October 2021 edition of the Indiana State Bar Association Journal calls on the Indiana Supreme Court to, by court rule, "establish a procedure for tenants to pay rent into escrow if tenants allege that leased property is not habitable, and, if appropriate, allow tenants to use the escrowed funds to pay for repairs." There is little chance that the Indiana Supreme Court or other courts will establish such a process without legislative authorization. Before the next legislative session, GIMA, its members, and other advocates need to raise awareness. Educating the public, legislators, and the judiciary about this problem and how other states use court-approved escrow accounts could be a significant step in making the playing field even.