House Rejects Rental Fee Cap Increase After Court Ruling

The Indiana House rejected an attempt Monday to raise the cap on rental fees cities can charge to landlords.

Current law says municipalities can’t charge landlords an inspection fee of more than $5 per unit. Those charges are often passed on to renters.

Bloomington and West Lafayette – college towns with significant rental inspection programs – were exempt from that cap until a recent state Supreme Court decision eliminated those exemptions.

In response, Rep. Chris Campbell (D-West Lafayette) wanted to raise the cap for all cities to $150 per unit. She says the inspection programs help keep people safe.

“A lot of those inspections have led to cases where there were not fire alarms in the homes or too many occupants in the homes,” Campbell says.

But Rep. Todd Huston (R-Fishers) says jumping from a $5 cap to $150 is a dramatic increase.

“One I cannot support and I would appreciate your vote against this amendment,” Huston says.

Campbell’s amendment failed, 21 to 73.