, but only for a few specific reasons, such as when military members get deployed. If you are a renter, you must know the legal grounds to break your lease to avoid potential financial penalties.

We have all signed a rental or lease agreement at one time or another, but how often did we read the fine print? Unfortunately, most renters don't until they need to

break their lease

. Relocation due to a job, heading off to school, or getting married all seem like valid reasons to move—and they are. However,

they aren't legal reasons to break a lease

If you need to move during your lease term, it may cost you a pretty penny. This is why

, the

for saving money on

and

insurance, is here to help you learn

what to do

if you need to break your lease and

what options are available

in Indiana.

When is breaking a lease legal in Indiana?

There are

five legal ways

to break a lease in Indiana, and most of them

do not

have any fees or penalties associated with them.

Early termination clause

: Most leases will include wording specifically regarding when is it ok to terminate a lease, how much notice is needed, and what the fees and penalties are

Active duty military

: Members of the military have protection from

The Service Members Civil Relief Act (SCRA)

in case of deployment. To meet the requirements, the tenant must have signed the lease

before

entering active duty status and the deployment must be for

more than 90 days

Unit is uninhabitable

: The rental must be up to Indiana's

health and safety codes

for rental units. If the tenant advises the landlord that repairs are needed, and they aren't made in a timely matter, the tenant can break the lease and move

Domestic violence

: Per

Indiana code 32-31-9-12

, there are protections in place for domestic abuse victims that

need to break their lease

and

protection from the landlord

forcing them to move

Landlord harassment or privacy violation

: It is illegal for a landlord to violate a tenant's right to privacy or harass them. This could be actions like changing the locks, not maintaining the property, physical or verbal abuse, and more per

Indiana code 32-31-5-6

MORE:

The best places to live in Indiana

What are the penalties for breaking a lease in Indiana?

The penalties for breaking a lease in Indiana tend to be financial, from immediate fees to a long-term legal battle that results in

bad credit

Here are some examples of the fallout that can result from

breaking a lease

Hefty fees

: A rental agreement is a

legally binding contract

. Unless you have a legally protected reason to break the lease, any fees, and past due rent are your legal responsibility

Lawsuit

: If your landlord knows that you will not be paying the rent or fees promptly, they can sue you for

breach of contract

. Between time off work and possible lawyer fees, this could

cost much more

than what was originally stipulated in the lease agreement

Decrease in credit score

: Landlords can take tenants to small claims court and/or higher a collection agency. Once this happens, it becomes part of your credit history which impacts any future purchases that require a good

credit score

, such as credit cards, mortgages, and

car loans

Less desirable future rental options

: Landlords look at your prior rental history when applying for new housing. Past due rent, evictions, and broken lease agreements make you a less desirable tenant which can limit your choices in the future

MORE:

How many dogs can you have in Indiana?

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How to break a lease without a penalty in Indiana

If your lease is coming to an end at the same time you wish to move, you don't need to notify your landlord. You are

free to move

once your lease is up

without a penalty

. However, it would be nice to give them a heads up so they can line up their next tenant.

Some tenants and landlords have an agreement that once the first year is up on a lease, it automatically converts to a

month-to-month tenancy or at-will tenancy

. This means there is no end date, it is just terminated when either the landlord or tenant decides it should.

If this applies to you, Indiana law requires you to notify your landlord

via written notice at least three months ahead of time

. The notification can be mailed or hand-delivered.

If you are on a month-to-month lease, you must provide the landlord with

written 30 days notice

directly or through the mail.

Aside from the options stated above, breaking a lease mid-term

will come with some kind of penalty

unless you have a legally protected reason. If you rent from a large corporation, you may be stuck with the fees that are stipulated in your rental agreement. If you rent from a

mom-and-pop company

(someone that owns only one or two rentals)

there may be some wiggle room

Remember, as unpopular as it is to say,

landlords are people too

. Your rental is their source of income and likely their retirement plan. They want tenants who

enjoy living there, pay on time, and care for the property

Your best course of action is to speak to your landlord honestly and show a willingness to work with them. Here are some tips:

Sublet

: Some lease agreements allow you to find someone to take over the remaining time on your lease. Other agreements

expressly forbid this

, so check your lease before allowing someone else to move in. This option is more likely with a property management company

Offer to help them find someone else

: Most small landlords want to control who lives on their property, but if you can find someone to start

a new lease

, they are more likely to let you out of your lease without having to pay a fee

Read your lease carefully

: It is possible that you won't have to pay as much as you think! While some landlords require you to pay out the entire time left of your leasing term, some may just fine you a flat amount. A $250 fine is much better than $5,000 in rent for an apartment you aren't living in anymore

Negotiate

: When all else fails, negotiate. Ask if you can pay what is due

over time

. Try to point out how they can raise the rent for a new tenant with you gone. State (and follow through on) that you can have the apartment cleaned, painted, and move-in ready for the next tenant, which will save them time and money.

Sweat equity

is real and has value to smaller landlords.

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