So, you’re thinking about renting out your house in Central Indiana.
Maybe you’re moving, maybe you have a low-interest mortgage you don’t want to give up, or maybe you’ve just realized that your ready to be a landlord and start building long-term wealth.
Whatever the reason — welcome to the world of landlording!
Before you toss a “For Rent” sign in the yard or list it on Zillow, there are a few critical things to know — especially if you’re renting in Indianapolis, where the rental market, legal requirements, and property types vary drastically by neighborhood.
Let’s break down what first-time landlords in Indy need to understand.
1. Understand the Local Rental Market
Central Indiana is a patchwork of very different submarkets. A home in Anderson or Kokomo may appeal to cash flow-focused investors, while places like Carmel or Zionsville might attract renters willing to pay more for schools and amenities.
Even within the Indy metro, a house in Beech Grove will lease differently than one in Fishers or Brownsburg. Rental rates, time on market, and even the type of Resident you attract can vary dramatically just a few miles apart.
In early 2025, average rents in the region climbed while days on market (DOM) dropped — but those trends don’t apply equally everywhere. Local demand matters.
Pro Tip: Don’t rely on national averages.
Trust local guides with updated numbers:
2. Get Real About Your Home’s Condition
Renters today expect clean, safe, and well-maintained homes. That hole in the drywall or broken light switch you’ve lived with for years? It’s a red flag to a Resident.
And don’t assume “it’s just a rental” gives you a pass.
You’re entering a business—your home is now a product. And products that show well rent faster, to better Residents, and at stronger prices.
Basic Necessity Checklist before listing:
- Neutral paint and clean floors
- Working appliances
- No leaky faucets or roof issues
- A professional deep clean
- Lawn in good shape
3. Know the Laws — Yes, Even for One Property
Indiana’s Landlord-Tenant laws are fairly landlord-friendly—but they’re still laws. You’ll need to follow the rules around:
- Security deposits
- Fair housing compliance
- Proper notice for entry and lease terminations
- Habitability standards
- Eviction process
And if you’re managing this yourself, you’ll be responsible for lease drafting, application screening, and knowing how to deny an applicant legally if needed.
4. Screening is Everything
Want to avoid the horror stories? It starts with screening.
Don’t just go with your gut. Run:
- Credit checks
- Criminal background checks
- Income verification (typically 3x rent)
- Rental history
And never skip calling prior landlords. That one five-minute call could save you thousands.
Be sure to follow the same exact process every single time. If you don’t, you may be an easy target for a fair housing lawsuit.
And be highly aware of rental fraud. It’s out there, and fraudsters LOVE taking advantage of new landlords.
5. Set Up Systems or Get Help
Even one rental property can feel like a second job. Who’s answering calls at 9 p.m. about a leaking water heater? Who’s following up on late rent?
If you’re handy and have time, self-managing might work. But if you live out of town, travel often, or simply want this to be a passive investment—you’ll want a property manager.
Many local Indy landlords find that a PM pays for itself in fewer mistakes, better Residents, and stronger long-term returns.
6. Price It Right
It’s tempting to aim high, especially with mortgage payments on the rise. But pricing your home above market only leads to longer vacancies—which cost more than shaving $50 off the rent.
Example: If your house rents for $1,500/month, every week it’s vacant costs you $375.
Working with a Property Management team can help you price right, and in-turn, have more profit.
7. Your First Lease Sets the Tone
A good lease protects you and clarifies expectations. Make sure it includes:
- Clear rent due dates
- Late fees
- Maintenance responsibilities
- Rules on pets, smoking, occupancy
- Move-in/move-out procedures
And always do a move-in inspection with photos. You’ll thank yourself later.
Final Thoughts: You’re Not Alone
There are over 80,000 rental properties in Marion County. Some landlords are seasoned pros. Others, like you, are just starting out.
Done right, renting your home can build wealth and preserve your low-interest mortgage while the property appreciates. Done wrong, it can lead to stress, bad Residents, and financial strain.
If you’re unsure where to start, don’t guess. There are people (like us) who help new landlords every single day.
Want a second set of eyes on your home before listing it? Need help screening applicants or understanding Indy’s leasing landscape? We’ve got your back.
Thinking about renting your Indianapolis home?
