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Are Handshake Leases Dead? Why North Vernon Landlords Need a Written Agreement in 2026
Are Handshake Leases Dead? Why North Vernon Landlords Need a Written Agreement in 2026
Posted 7/10/2026 by Christopher L. Doran
For a long time in Jennings County, a handshake was as good as a contract. You’d meet a neighbor at Jim Dandy In North Vernon or Linda's Log Cabin in Vernon, talk about a rental house, and shake on it. You both knew the deal. You both trusted each other.
But as we move through 2026, things are changing. Even in our small towns like Scipio, Hayden, and Butlerville, the "handshake deal" is becoming a big risk for landlords. It’s not that people aren't honest anymore. It’s just that life gets complicated. People forget details. Rules change. And when a disagreement happens, "he said, she said" doesn't help you much in front of a judge.
I’m Chris Doran, and I see these situations all the time. As a small town lawyer, I wear many hats, and one of them is helping landlords navigate the legal world. I’ve seen many good people lose money or end up in stressful court battles just because they didn't have a simple piece of paper.
Today, let’s talk about why you need to put it in writing and how it protects you and your property.
What Does Indiana Law Say About Verbal Leases?
What Does Indiana Law Say About Verbal Leases?
First, let's look at the rules. In Indiana, you can have a verbal lease for a home. The law says they are valid. If you tell someone they can live in your house for $800 a month and they agree, you technically have a contract.
However, just because something is "legal" doesn't mean it’s a good idea.
The biggest problem with a verbal deal is proof. If you go to the courthouse in Vernon because your tenant stopped paying, the judge is going to ask for the terms of the agreement. If you say the rent was $900 and the tenant says it was $700, and there is no paper to prove it, the judge has a hard job.
Without a written lease, you are basically asking a stranger (the judge) to guess who is telling the truth. That is a risky way to run a business.
The Three-Year Rule (Statute of Frauds)
The Three-Year Rule (Statute of Frauds)
There is one big exception where a verbal lease is actually not legal in Indiana. It’s called the "Statute of Frauds."
If you plan to rent a property to someone for more than three years, it must be in writing. If it’s not, the law won't recognize the long-term deal. This comes up more often than you’d think, especially with family members or long-time friends. You might agree to a five-year deal so they can get settled, but if it's just a handshake, that five-year promise doesn't hold up in court.
Why Handshakes Often Lead to Headaches
Why Handshakes Often Lead to Headaches
When I sit down with landlords in my Vernon office, they often tell me, "But Chris, we’ve been friends for years!"
That’s great, but a written lease actually saves friendships. It sets clear rules so nobody gets confused. Here are a few things that usually cause trouble in handshake deals:
1. Late Fees
1. Late Fees
Let’s say the rent is due on the 1st. Your tenant pays on the 10th. You want to charge a $50 late fee. If that isn't in writing, you probably can't collect it. Most judges won't enforce a late fee unless there is a signed paper showing the tenant knew about it ahead of time.
2. Pets and Extra People
2. Pets and Extra People
You might have told the tenant "no dogs." Six months later, they get a large dog that scratches up the hardwood floors. They claim you said "small dogs are okay." Without a written lease, it’s hard to prove what the rule was. The same goes for extra people moving in who aren't on the original deal.
3. Repairs and Maintenance
3. Repairs and Maintenance
Who mows the grass? Who changes the air filters? Who pays for a clogged toilet? In a handshake deal, these details often get skipped. When the grass gets knee-high in Hayden, and the neighbors start complaining, you need a document that says the tenant is responsible for the yard.
Evictions: The Hard Part
Evictions: The Hard Part
Nobody likes to talk about evictions, but they are a part of being a landlord. If you have to ask a tenant to leave, the process in Indiana is very specific.
If a tenant doesn't pay rent, you usually have to give them a 10-day notice to pay or quit. This means they have 10 days to pay everything they owe or move out. If you have a written lease, this process is much smoother because the dates and amounts are clear.
If you want to end a "month-to-month" deal where there is no set end date, you have to give 30 days' notice.
I’ve written before about how the 10-day eviction notice must be perfect in Jennings County. If you make a mistake on that notice, the judge might throw your case out, and you have to start all over. Having a written lease makes it much easier to get those notices right.
Your Day in Jennings County Court
Your Day in Jennings County Court
If things don't work out and you end up in court, you’ll likely head to the courthouse in Vernon. I've spent a lot of time in those halls.
When you walk into that courtroom, the judge wants to see evidence. A written lease is your best piece of evidence. It shows:
When the deal started.
How much the rent is.
When the rent is due.
What happens if they don't pay.
If you are new to this, I recommend checking out my Jennings County Court 101 guide. It helps take the mystery out of what happens when you step inside that building.
How I Can Help You
How I Can Help You
I know that writing a legal document feels like a lot of work. You might feel like you're being "too tough" on a neighbor by asking them to sign a lease.
But look at it this way: a good lease protects both of you. It makes sure the tenant knows exactly what is expected, and it protects your investment.
As a "small town lawyer," I don't just hand you a giant stack of confusing papers. I listen to your specific situation. Maybe you’re renting out a small house in Commiskey or an apartment in North Vernon. Every situation is a little different. I can help you create a simple, clear agreement that fits your needs.
I handle evictions, small claims, and landlord-tenant matters all across this area. I travel to places like Columbus and Seymour too, though I do charge a travel fee for those trips to keep things fair and transparent.
Get It in Writing Today
Get It in Writing Today
If you are currently renting a property on a handshake, it’s not too late. You can still sit down with your tenant and put your agreement in writing. Most good tenants will understand that you just want to keep things organized.
If you’re feeling stuck or worried about a rental situation, give me a call. I’m here to give you practical options and listen to what you have to say. Let's make sure your property and your peace of mind are protected in 2026.
You can contact me here to set up a time to talk.
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