Indiana Rules Regarding Mold in Rental Properties

Here's what Indiana landlords (and tenants) need to know about mold and the law.

Every landlord should take mold seriously. A top environmental hazard, mold thrives in warm, damp places, and often grows quickly in basements, attics, and other parts of buildings with poor ventilation and humidity problems. Although mold is often associated with buildings in wet climates, no rental property is immune from a mold outbreak, as one can occur following an unattended spill, faulty plumbing, or even a misdirected lawn sprinkler.

If you own or manage a rental property in Indiana, a mold problem could present you with costly cleanup and repair bills as well as lawsuits from tenants claiming that the mold made them ill.

Read on to learn about landlord responsibilities and tenant rights when it comes to mold in Indiana rental properties.

Tenant Self-Help Strategies in Indiana

Courts have recognized two common legal self-help strategies that some tenants choose to pursue following a mold outbreak in their apartment or rental home. The first, known as "rent withholding," is when tenants decide to stop paying rent, claiming the mold has made their apartment uninhabitable. (Note that regardless of what may appear in a written lease with tenants, landlords in Indiana are bound by the “implied warranty of habitability,” a legal doctrine that requires providing tenants with apartments in livable condition.) The second strategy, known as "repair and deduct," involves tenants taking care of mold cleanup on their own and then subtracting the cost from their rent.

Indiana's state law has not codified these strategies, and so they may pose a challenge for tenants to pursue. SeeIndiana Tenant Rights to Withhold Rent or 'Repair and Deduct' for more information.

Landlord Liability for Mold in Indiana

There is currently no federal law covering a landlord's responsibilities when it comes to mold. Also, although Indiana has enacted laws to regulate mold in schools and state agencies, the state has not yet specifically addressed a landlord’s duties or liability when it comes to mold prevention and remediation.

However, tenants who believe they have been harmed by the presence of high concentrations of mold in their apartment can try to recover damages from their landlord in court to compensate them for their loss. If a judge or jury agrees that the landlord negligently created a mold problem or allowed one to continue at a property, the landlord could be on the hook for any harm.

For example, after tenants at an Indianapolis apartment complex discovered a widespread mold problem in their building, a tenant reported it to county health officials. In addition to being present in apartments, the mold affected common areas including stairwells and the laundry room, according to a press report. County inspectors visited the complex several times and issued orders for the landlord to address the problems through mold remediation as well as plumbing and other building repairs. In the meantime, the tenants reportedly stopped paying rent (as described above) until the mold issue was resolved.

Mold Disclosure Requirements in Indiana

Indiana requires sellers of residential buildings with up to four units to disclose in writing any known hazardous conditions, including mold (Ind. Code Ann. § 32-21-5-7). Indiana doesn't have any statutes or regulations that require landlords to disclose high concentrations of mold in rental properties to prospective tenants.

Also, while federal law requires disclosures about lead paint, it doesn't impose a similar duty on landlords when it comes to mold.

Aside from any affirmative disclosure requirement, however, if you decide to list a property for sale, you should be ready with responses to questions potential buyers might ask about plumbing, humidity, and ventilation issues in your building.

To learn more about landlord disclosure requirements in Indiana, check out Indiana Required Landlord Disclosures.

Deducting Mold-Related Costs from Security Deposits in Indiana

If you believe a departing tenant caused a mold problem (beyond ordinary wear and tear) in an apartment or rental unit, you may wish to deduct the cost of cleaning from that tenant's security deposit. Indiana law allows landlords to do this, provided they give the tenant a written explanation of the mold damage costs (along with any other claimed damages) within 45 days of the tenant's lease termination. If this amount is less than the security deposit, you must return the remainder of the deposit to the tenant along with the written documentation of damage deductions (Ind. Code Ann. § § 32-31-3-12, 32-31-3-14).

For more information about security deposits in Indiana, check out Indiana Security Deposit Limits and Deadlines.

Preventing Mold Problems

Because so much is at stake, it's important to try to prevent a mold problem from growing in your rental property in the first place, as well as take prompt, effective action to remove excess mold that you discover. For more advice on this, seeMold and Your Rental Property: A Landlord's Prevention and Liability Guide, by Ron Leshnower (Nolo).

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