Under Indiana law, property owners have an obligation to deliver a rental premises to a tenant in a safe, clean, and habitable condition (I.C. § 32-31-8-5). If bed bugs are identified upon delivery of the premises to the tenant, property owners have a duty to rectify the infestation. However, although property owners have these duties, tenants must notify them of the problem and give them a “reasonable amount of time to make repairs or provide a remedy” (I.C. § 32-31-8-6(b)(2)).

What happens if bed bugs are identified after delivery of the premise to a tenant? Indiana law does not speak to a property owner’s ongoing obligation to maintain the premises in a clean condition. However, Indiana Code § 32-31-8-5 requires property owners to “comply with all health and housing codes applicable to the rental premises.” Accordingly, if the locality within which the rental premises is located has local health or housing code ordinances concerning a property owner’s duty to eradicate bed bugs, those ordinances would be applicable and a property owner would be in violation of those ordinances and Ind. Code § 32-31-8-5 if it failed to comply with such ordinances.

On the other hand, it is possible that local ordinances could place the bed bug eradication burden on the tenant. For example, a city of La Porte ordinance (10-466 – Extermination) states that the owner of “any structure shall be responsible for extermination within the structure prior to renting or leasing the structure” but the occupant (tenant) “shall be responsible for the continued rodent and pest-free condition of the structure.” Property owners should consult with their local ordinances to see if a provision like this is included. A property owner can also include a provision in the lease to clarify that the tenant is solely responsible for bed bug extermination if the property was delivered bed bug free.

Owners of HUD-insured or assisted housing must maintain such housing in a manner that meets certain physical condition standards, including that the housing must have no evidence of infestation. Accordingly, HUD owners are required to eradicate bed bugs or other pest infestations. However, this does not always mean that the cost of eradication must be borne by the property owner. If the tenant introduced the bed bugs, they may be liable for the cost of eradication.