Indiana Pass-Through Costs and Rent Increases: What Renters Need to Know

If you rent a home or apartment in Indiana, any sudden rent increase can be stressful. Understanding whether your landlord is allowed to pass certain costs onto you — and under what rules — is essential to protecting your finances. This article explains Indiana law about pass-through costs, when landlords can increase rent, and what renters need to do if they have concerns.

Rent Control and Pass-Through Costs in Indiana

Indiana does not have state or local rent control laws. Landlords can generally set rent and increase it as they wish, as long as they follow the rules in your lease and provide proper notice as required by state law. "Pass-through costs" refer to expenses landlords may choose to pass on to tenants, such as certain utilities, property taxes, or improvement costs. While some states regulate these fees, Indiana law provides limited protections for renters when it comes to these charges and rent hikes.

What Are Pass-Through Costs?

Pass-through costs are additional expenses a landlord may require tenants to pay, sometimes in the form of increased rent or monthly surcharges. In Indiana, common examples include:

• Utility charges (e.g., water, sewer, trash, electricity)
• Property tax increases (rarely passed on directly unless allowed by the lease)
• Improvement or maintenance costs (only if your lease specifies this)

The key requirement is that any pass-through costs must be clearly described in your leasing agreement. Otherwise, landlords cannot add new fees in the middle of your lease term.

Your Rights: Rent Increases and Notifications

Landlords in Indiana are legally required to give renters "reasonable notice" before increasing rent, provided you are on a month-to-month lease. The most common timeframe is 30 days' written notice. For fixed-term leases, landlords generally cannot raise rent until the lease expires unless your contract says otherwise.

• If your landlord wants to increase rent due to pass-through costs, the lease must specify this right and how these costs are calculated.
• Any change in terms (including new fees or increases) requires written notice — usually through a Notice of Lease Change or simple written letter.

If you believe a rent increase or new fee is not allowed by your lease, you have the right to dispute it in writing. If you choose not to agree to the new rent, the landlord may give you notice to move out at the end of your rental period.

Official Forms and How They're Used

• Notice to Vacate: Used by either renters or landlords to end a lease. Indiana law does not have a numbered form, but you can use the official template from the Indiana Courts for basic legal notices.
  When to use: If you choose not to accept an increased rent or new pass-through cost and decide to move out, provide your landlord with this notice. Indiana Notice to Vacate (official template)
• Small Claims Complaint (Form SC-1.1): If you need to recover illegal charges or dispute unauthorized rent increases, you may file a claim in Small Claims Court.
  When to use: For example, if your landlord charges a pass-through cost not outlined in your lease, you can seek reimbursement using this form.
  Form SC-1.1 (Indiana Small Claims)
• Demand Letter for Return of Wrongfully Collected Fees: While Indiana doesn’t have a state form, a written demand is the first step before pursuing formal legal action.
  When to use: Send a letter to your landlord explaining why you believe the pass-through cost is invalid and request a refund. Indiana Attorney General – Tenant Complaint Resource

Where to Get Help: Indiana's Housing Tribunal and Laws

Rental disagreements in Indiana are typically handled in your local small claims court or housing court. There is no specialized tenant tribunal. Legal rules are set by the Indiana Code Title 32, Article 31 – Landlord-Tenant Relations.^[1]

Common Situations and What to Do

• If your landlord raises rent or adds a new fee during a fixed-term lease, check your lease contract to see if this is allowed.
• If your lease is month-to-month, expect at least 30 days' written notice before any increase.
• If you believe your landlord is violating the law, you can file a complaint with your county court or contact the Indiana Attorney General's office using the resources below.

Being aware of your rights gives you the tools to challenge unfair charges and seek help if needed.

Frequently Asked Questions

1. Can my landlord in Indiana raise my rent any time they want?
   No. For fixed-term leases, rent cannot be increased until the lease ends, unless your contract allows it. For month-to-month tenants, landlords must give at least 30 days' written notice before increasing rent.
2. Are there limits on how much rent can increase in Indiana?
   Indiana does not have statewide rent control, so there is no legal limit on how much rent can increase, unless your lease states otherwise.
3. What should I do if my landlord charges a new fee or pass-through cost?
   Check your lease to see if the fee is allowed. If it isn’t mentioned, put your objection in writing and ask the landlord to explain. If they cannot provide a legal basis, you may dispute the charge in small claims court.
4. Which government body handles rental disputes in Indiana?
   Rental disputes are handled by Indiana’s local small claims courts and housing courts. There is no statewide landlord-tenant board.
5. How can I file a complaint against my landlord?
   You can file a complaint with your county’s small claims court using Form SC-1.1, or contact the Indiana Attorney General’s Consumer Complaint division.

Need Help? Resources for Renters

• Indiana Small Claims and Landlord-Tenant Resources
• Indiana Housing & Community Development Authority
• Indiana Attorney General – Tenant/Consumer Complaint Portal
• Indiana Legal Help – Free Legal Information for Renters

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1. Indiana Code Title 32, Article 31 – Landlord-Tenant Relations
2. Indiana Judicial Branch: Small Claims & Landlord-Tenant Info
3. Indiana Housing & Community Development Authority
4. Indiana Attorney General – File a Complaint

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