Indiana law has no specific statute to address the use of different lease types within the same apartment community. For example, the use of student housing leases and conventional residential leases to accommodate families or professors and students. Even so, owners and operators should be cognizant of state and federal fair housing laws, specifically prohibitions against discriminatory acts based on protected classes such as familial status.

To ensure that owners and operators comply with the applicable fair housing laws in utilizing different lease types within the same community it is good to think about why you are using different leases. First there must be a legitimate, nondiscriminatory business reason for doing so. Student leases commonly include provisions such as per-bedroom leasing, individual liability, guarantors, and alternative income verification methods. Conventional leases, in contrast, are generally structured for a single household and impose joint and several liability (meaning everyone on the lease is responsible for any payments or obligations) on all residents. The use of these differing lease types, in and of itself, does not constitute a fair housing violation. Therefore, the implementation could be useful for different potential residents and there could be a legitimate business reason for offering both options.
Next, owners and operators in implementing different lease types must ensure that the use of multiple lease types does not result in disparate treatment or have a discriminatory effect on protected classes. In our example, policies or practices cannot limit access to certain unit types based on familial status. Families with children and individuals using a student lease structure must have access to all types of dwelling units that are appropriate for occupancy and may not be restricted to certain areas or unit types based on lease structure. Not doing so could raise fair housing concerns.

Owners and operators who apply leasing policies consistently and avoid designating unit types in a manner that could exclude or discourage protected classes should be free to provide different lease structures to best fit the resident’s needs. Written policies outlining the criteria for the use of different lease types are recommended to ensure compliance and reduce the risk of fair housing violations. These policies should be drafted and reviewed by your property’s attorney.