SB 467 makes several changes to Indiana landlord-tenant law, primarily aimed at protecting tenants in residential rental housing. It would require landlords to give tenants at least 60 days’ written notice before listing a leased rental property for sale, with exceptions for mutual lease termination, leases expiring within the notice period, tenant breach, or a sale tied to the owner’s death. If the property is sold, the buyer generally must honor the existing written lease, unless the buyer gives at least 30 days’ written notice of termination and pays the tenant one month’s rent plus the full security deposit.
The bill also strengthens habitability requirements by defining “essential services” and “essential systems” and requiring landlords to repair or replace essential systems within 48 hours after notice when a unit loses services such as electricity, gas, heat, or water due to system failure or poor maintenance. It creates a self-help remedy allowing tenants, after giving 30 days’ notice, to withhold the estimated repair cost from rent and use that money to make the repairs if the landlord does not act. In addition, it allows courts in pending tenant enforcement actions to order rent payments into a court clerk account or attorney trust account until the dispute is resolved.
If enacted, the bill would amend multiple sections of Indiana Code chapter 32-31-8 and add new provisions governing landlord duties, tenant remedies, and the sale of occupied rental property. It would impose new notice obligations on landlords before listing leased property for sale, require purchasers to respect existing leases under most circumstances, and establish a statutory 48-hour repair deadline for essential systems affecting habitability. It also expands tenant enforcement options by authorizing rent withholding for repairs and by giving courts authority to escrow rent during litigation, which could affect landlords, tenants, property managers, buyers of rental property, and courts handling housing disputes.
The bill’s overall tone is tenant-protective and pro-habitability, suggesting a legislative effort to address displacement risk and delayed repairs in rental housing. Because there are no committee transcripts or recorded votes provided, there is no direct evidence of support or opposition from lawmakers in the available record. Based on the bill text alone, the measure appears designed to respond to common tenant complaints about maintenance delays and unexpected property sales, while still preserving landlord exceptions and procedural safeguards.
The main points of contention are likely to be the new constraints on landlords’ ability to sell occupied property, the short 48-hour repair deadline for essential systems, and the tenant self-help rent-withholding remedy. Landlords and property owners may view the notice requirements, mandatory lease honoring, and escrow provisions as burdensome or costly, especially where repairs require contractors or access issues arise. Tenants and housing advocates would likely support the bill’s stronger notice, repair, and enforcement protections, while some may still question whether the exceptions and procedural steps are sufficient to prevent abuse or whether the repair timeline is realistic in practice.