State Specific Question About: INDIANA (IN)

Limit on security deposit? I found nothing in state code limiting amount you can take for deposit.

Ya, but that would give me an Aug 1st vacancy, or worse if I had to evict, a Oct 1st vacancy. In a hard to rent area.

I don't mind giving the deposit back. It's not like I'm going to spend it.

Brad, no deposit limits to my knowledge.

However, if it went to court, I think the judge would find it unreasonable and rule against you. My reputation for honesty and reasonableness is worth thousands in court.

Consider using the law to your advantage - write a 1 year lease with one payment. No refunds.

IN law bases the term of the lease according the payment schedule. If they pay by the month, the lease is technically MTM. If they pay by the year, it is year to year.

Even if T pays 12 months of rent, I would still require normal or greater deposit.

In our 32 years, we've had a few pay like this and each time, the house was trashed. The money usually came form an insurance settlement. They were $400 a month type renters who splurged their windfall and rented $900 a month houses. They did not know how to take care of them, nor even tried.

I think there was a "I really didn;t pay for this myself so I don't care" attitude.

It makes me wonder why a T would pay up front and where they got that much cash.

We get paid a year in advance many time, since we rent to college students.

(Sigh) Both Brads, I would never do this. Take a larger SecDep--but don't take more than 2 months rent in advance. Not everything is about the MONEY. Don't let those dollar signs blind you to all the other ramafications. Sometimes it is about the ability to have/keep CONTROL of your property! If the time shd ever come that you want her out, you will have a hard time getting an eviction. And a lot can happen that you can't foretell. Everything bad that she could possibly do--will be made harder for you if you have taken her money in advance. What if she allows a criminal ex husband or brother or son move in with her and st-- hits the fan? What if she or others start to selling drugs from the property? What if she is the receiver of stollen goods? or, starts a 'home business' with a few ladies that show you a good time? Or bring in pit bulls? or start to remodel in your property by taking down walls? Or goes mad and howls at the moon every night disturbing the neighbors, with police involvement! Or WHATEVER!

If you need to get this person out for whatever reason--you will have stollen from YOURSELF the single best court argument you have! For anything other than unpaid rent--you will have to go thru citing her, waiting the timeframe, taking her to court and convincing the judge that even tho you have taken her money--you want them to throw her out of her home for this other technicality of the lease.

And she is already out of a job NOW, and there is no telling IF she will get another one. When she runs out of unemployment--she will still need to pay bills and eat, put gas in the car. She may just try a home business--cause she now HAS THE HOME! You have to expect that people will do stupid stuff. You have to take precautions against their bad behavior and protect your property and business. You have to keep options in your hand--not trade them away for easy money.

I'm not broke, that's not why I wanted the upfront money. She offered it as security since she didn't have a job. In this market, a tenant with a job could lose it the day after they move in and not be able to get another. Almost no worse than a tenant with a marginal job. Tenant pool here is not so great. Everybody has some issue. smoker, pets, no job, bad credit, bad ref's, etc. I'm accepting this applicant with 11 months upfront + two months deposit.