Indiana Commercial Maintenance: Landlord & Tenant Duties

Commercial property maintenance in Indiana is primarily determined by the lease agreement, not statute. Foundational property rights are governed by Indiana Code Title 32 (effective July 1, 2002), following principles established since Indiana achieved statehood on December 11, 1816. Unlike residential leases governed by IC 32-31-8, commercial leases follow the principle of "caveat lessee" (let the tenant beware). Commercial leases can allocate maintenance responsibilities in virtually any way the parties agree - from the landlord handling everything (gross lease) to the tenant assuming nearly all maintenance (NNN lease). Disputes are typically adjudicated in the Superior Court or Circuit Court of the county where the property is located.

Maintenance Allocation by Lease Type

Official Law Citation: The rules and regulations outlined on this page are governed entirely by the heavily negotiated terms of your commercial lease agreement.

Baseline Property Standards

Indiana commercial lease maintenance is governed by the principle of "caveat lessee." Property owners do not have an implied duty to repair, and IC 32-31-8 (Landlord Obligations Under Residential Rental Agreement) applies exclusively to residential dwellings and cannot be used to impose maintenance standards on commercial properties.

Building and Fire Codes

• Comply with all applicable local building codes and zoning requirements.
• Maintain the property in compliance with state fire safety standards (675 IAC 22).
• While both parties may be liable to state authorities for violations of the Indiana Building Code (675 IAC 13), the financial responsibility for bringing a property into compliance is determined solely by the lease's "Compliance with Laws" clause.

Structural Responsibility

In Indiana, the legal default is that a landlord has no duty to repair or maintain the premises unless specifically required by the lease or a statute (Pruitt v. Akers, 198 N.E.3d 1199; Coalson v. Canfield, 497 N.E.2d 245). There is no implied warranty of fitness for a particular purpose or suitability in commercial leases.

• Structural integrity: The duty to maintain the foundation and load-bearing walls must be explicitly negotiated and defined in the lease.
• Environmental hazards: Address pre-existing environmental hazards unless liability is explicitly transferred in the contract.
• Contractual Supremacy: If the lease is silent on a specific repair, the landlord is generally not legally obligated to perform it.

Common Area Maintenance

If the lease is silent, there is no statutory maintenance mandate for common areas in a commercial context. However, most commercial leases allocate responsibility for these areas to the landlord, with costs often passed through to tenants:

• Hallways, lobbies, and shared restrooms
• Parking areas and driveways
• Elevators and escalators
• Building exterior and grounds
• Security systems (if provided)

NNN Lease Maintenance Details In Triple

Net leases, tenants assume extensive maintenance responsibilities:

Tenant's Typical NNN Obligations

• All interior maintenance and repairs
• HVAC system maintenance, repair, and often replacement
• Plumbing and electrical within the leased space
• Interior painting, flooring, and fixtures
• Pest control within the leased space
• Glass and window repair
• Signage maintenance

Landlord's Typical NNN Obligations

• Roof (major repairs and replacement - sometimes allocated to tenant)
• Structural repairs (foundation, walls)
• Major building systems (shared electrical panels, water mains)
• Common area management (billed back as CAM)

CAM Charges

CAM (Common Area Maintenance) charges are passed through to NNN tenants and typically include:

• Parking lot maintenance, repairs, and resurfacing
• Landscaping and snow removal
• Common area utilities (lighting, water)
• Property management fees (often 3-8% of gross revenue)
• Security services and systems
• General maintenance of shared facilities

Capital Expenditure Responsibilities

A key area of negotiation in commercial leases is capital expenditures (CapEx):

Common Lease Provisions

Amortization CapEx

items are often amortized over their useful life and passed through to tenants as part of CAM or as additional rent. The lease should specify:

• Useful life definitions for common CapEx items
• Amortization rate (often based on the landlord's cost of capital)
• Whether only the amortized portion during the lease term is the tenant's responsibility

Preventive Maintenance Requirements

Commercial leases often require tenants to perform preventive maintenance on key systems:

• HVAC service contracts - quarterly or bi-annual professional maintenance
• Fire suppression inspections - annual testing and certification
• Grease trap cleaning - for restaurant tenants
• Roof inspections - annual professional assessment
• Elevator inspections - per state requirements

Landlords should require proof of maintenance (invoices, certifications) to enforce these obligations.

Best Practices for Commercial Landlords

1. Define maintenance responsibilities clearly - Ambiguity is the top source of landlord-tenant disputes
2. Require preventive maintenance contracts - Especially for HVAC and critical systems
3. Inspect regularly - Annual or semi-annual inspections catch issues early
4. Budget for capital expenditures - Plan for roof, HVAC, and parking lot replacements
5. Track all maintenance requests - Document response times and resolution
6. Review CAM reconciliations carefully - Ensure accurate pass-through billing
7. Address deferred maintenance before leasing - New tenants should receive well-maintained premises

How Landager Helps

Landager continually tracks lease terms, required compliance items, and strict accounting records - making it easy to stay compliant with Indiana regulations.

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