Lafayette, IN asked in Landlord - Tenant for Indiana

Q: Our apartment complex is charging us a penalty fee not outlined in our lease, do we have to pay it? Is this legal in IN?

We are ending our lease early, we have given 60 days written notice. The lease says that this is required to vacate the apartment but says nothing about a penalty for vacating prior to the end of the lease. I've read that you usually pay out the lease until they lease the apartment to someone else, but they told us we won't be paid back the prorate after they lease it to someone else.

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1 Lawyer Answer

A: If there is nothing in the lease agreement about paying fines for vacating early then there shouldn't be any fines for you to pay. However, if you agreed to pay these fines for vacating the premises early in the lease or an incorporated document then you will most likely be held accountable. Landlords can and do charge tenants penalties for breaking their lease agreement, same as if they violate it in other ways by paying rent late.

You are correct that a landlord has a duty to mitigate his or her damages by renting out the rental unit as soon as possible. Usually, however, the previous tenant who broke the lease is not still paying for a rental unit they are not inhabiting.

Fines and penalties associated with breaking a lease early are usually done so in lieu of the rent for the time that you would have stayed there. Essentially it operates as a settlement agreement in regards to the rent. It sounds like from the limited information here that your landlord is attempting to double dip in regards to payment.

You should absolutely consult with a local landlord/tenant attorney in your area to get legal advice and possible representation.

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