Late Rent Fee Limits in Indiana

At a glance

Requirements one by one

Indiana supplies no statewide late-fee formula

The official 2026 Indiana Code places landlord-tenant relations in IC 32-31. Its Article 31 index and Chapter 1 contain no section setting a dollar or percentage late-fee ceiling, a fee grace period, a one-time or daily structure, a calculation base, or a late-fee-specific remedy. Those terms therefore are not supplied by the cited landlord-tenant statutes.

Indiana also limits local regulation. IC § 32-31-1-20(c) says a city, county, or town may not regulate listed parts of a private landlord-tenant relationship unless the General Assembly authorizes it. The list includes leasing terms, disclosures, the parties' rights, and "any fees charged by a landlord." A local ordinance that violates the subsection is "void and unenforceable."

The preemption section itself has a coverage exception. Subsection (a) says it does not apply to privately owned property receiving government funds or benefits expressly intended to provide reduced rents to low- or moderate-income tenants.

What trips people up

The 10-day notice is not a late-fee grace period. IC § 32-31-1-6 permits a landlord to terminate for unpaid rent with at least 10 days' notice unless the parties agreed otherwise or the tenant pays in full before the notice expires. That section governs termination and cure; it does not say a landlord must wait 10 days before assessing a fee.

Indiana generally blocks local fee regulation. A city ordinance is not an automatic source of a lower late-fee ceiling because § 32-31-1-20(c)(7) preempts local regulation of landlord fees unless an act of the General Assembly authorizes it. The subsidized-property exception in subsection (a) still needs separate attention.

Common questions

Does Indiana cap a late fee at 5% or 10%? No such percentage appears in the fetched landlord-tenant chapter. A percentage in a lease or form is not an Indiana statutory ceiling.

Must a landlord wait 10 days before charging the fee? Section 32-31-1-6 does not create that rule. Its 10 days concern termination for unpaid rent and the tenant's chance to pay before the notice period expires.

Can an Indiana city set its own cap? Generally not for privately owned property. Section 32-31-1-20 bars local regulation of landlord fees unless the General Assembly authorizes it, subject to the section's government-supported reduced-rent-property exception.

Statutes and sources

• IC § 32-31-1-20(a)-(c) — local preemption of rental-rate and landlord-fee regulation, the reduced-rent-property exception, and voidness of conflicting ordinances.

  Sec. 20. (a) Subject to IC 36-1-3-8.5, this section does not apply to privately owned real property for which government funds or benefits have been allocated from the United States government, the state, or a political subdivision for the express purpose of providing reduced rents to low or moderate income tenants. ... (c) A unit ... may not regulate ... (7) Any fees charged by a landlord. Any ordinance or regulation that violates this subsection is void and unenforceable.

Official source: https://iga.in.gov/ic/2026/Title_32/Article_31/Chapter_1.pdf (accessed 2026-07-20)

• IC § 32-31-1-6 — nonpayment termination notice and cure, not a fee grace period.

  Sec. 6. If a tenant refuses or neglects to pay rent when due, a landlord may terminate the lease with not less than ten (10) days notice to the tenant unless: (1) the parties otherwise agreed; or (2) the tenant pays the rent in full before the notice period expires.

Official source: https://iga.in.gov/ic/2026/Title_32/Article_31/Chapter_1.pdf (accessed 2026-07-20)