If a tenant screening report has come back cleaner than you expected lately, Indiana's new eviction- sealing law is very likely the reason. Since mid-2025, courts across the state have been required to automatically seal certain eviction records, which has changed what actually shows up when you run a background check on an applicant. Understanding what's sealed, what isn't, and how to adjust your screening process is essential for staying both compliant and protected.
Here's what the law actually does, what it means for how you screen tenants going forward, and how to keep making sound leasing decisions with less eviction history to lean on.
Key Takeaways
- Senate Enrolled Act 142 requires Indiana courts to automatically seal eviction records when a case is dismissed, decided in the tenant's favor, or overturned on appeal.
- Tenants who've paid off a money judgment tied to a past eviction can now petition to have that record sealed as well.
- Eviction cases with a final order but no money judgment can be sealed after seven years.
- Sealed records won't appear in standard tenant screening reports, which means some past eviction filings are no longer visible to landlords at all.
- Landlords should place great emphasis on direct landlord references, income verification, and a thorough application process rather than relying on eviction history alone.
What Senate Enrolled Act 142 Actually Does
Senate Enrolled Act 142, also known as Public Law 128-2025, took effect on July 1, 2025, fundamentally changing how eviction records are handled in Indiana. The law's core purpose is to prevent tenants from being permanently locked out of housing due to an eviction filing that was dismissed, resolved in their favor, or that didn't reflect an actual failure to pay rent or a lease violation.
Before this law, an eviction filing stayed on a tenant's record indefinitely, regardless of the outcome. A tenant who won their case, or had it dismissed because a landlord failed to maintain habitable conditions, still showed up in screening reports looking identical to someone who was evicted for genuinely not paying rent. Advocates had long argued that this created a permanent barrier to housing for tenants who, by any reasonable measure, had done nothing wrong.
When Records Are Sealed Automatically vs. By Petition
The law creates a few distinct paths to sealing, and it matters which one applies. Courts are now required to automatically seal a record in three situations: when the case is dismissed, when a judgment is entered in favor of the tenant, or when a judgment against the tenant is overturned on appeal. In these cases, the tenant doesn't have to do anything. The court handles it without a motion or a petition.
Beyond the automatic categories, tenants who have satisfied a money judgment related to their eviction can petition the court to have that record sealed,, even though the eviction itself wasn't dismissed or decided in their favor. Separately, cases that end in a final order without a money judgment can be sealed after seven years, giving long-past filings a path off a tenant's record even without an active petition.
What This Means for Your Tenant Screening Process
The practical effect for landlords is straightforward: sealed records are not accessible during routine tenant screening. If a previous applicant had an eviction filing that qualifies for sealing, whether automatic or through a petition, that filing won't appear on the background check you run today, even if it would have shown up a year ago.
This doesn't mean eviction history has disappeared as a screening tool. Filings tied to a straightforward nonpayment judgment that hasn't been satisfied, or a case still working through the court process, will generally still appear. What's changed is that the pool of visible eviction records now skews more heavily toward unresolved debts and clear-cut judgments, rather than including every filing regardless of outcome.
How to Adapt Your Screening Practices
- Call previous landlords directly rather than relying solely on screening reports. A direct conversation can surface payment patterns and behavior that a sealed or absent record wouldn't reveal.
- Verify income and employment thoroughly and consistently for every applicant, since a strong, stable income remains one of the best predictors of on-time rent payment regardless of past eviction history.
- Use a detailed, consistent rental application that asks about rental history directly, and treat gaps or vague answers as reasons to dig deeper, not necessarily to reject.
- Apply your screening criteria uniformly to every applicant. With less eviction history visible for some tenants, consistency matters even more for fair housing compliance.
- Don't assume a clean screening report means a completely clean history. Build your decision on the full application picture rather than treating an empty eviction section as a guarantee.
Benefits and Challenges for Landlords
There's a genuine upside here, even from a landlord's perspective. Evaluating applicants on their current financial stability and references, rather than an old filing that was dismissed or resolved in their favor, generally leads to fairer and more accurate leasing decisions. It also reduces the risk of a fair housing complaint tied to blanket policies that reject any applicant with any eviction filing on record, regardless of outcome, a practice that housing advocates and some courts have increasingly scrutinized.
The honest challenge is that landlords now have less raw historical data to work with for some applicants, and that puts more weight on the parts of screening that take real time and effort: verifying income, checking references, and asking the right questions on the application itself. Landlords who relied heavily on a quick eviction history check as their primary screening tool will need to invest more in other parts of the process to continue making sound decisions.
Staying Compliant While Screening Fairly
The safest approach is to build a screening process that would hold up well even without eviction history as a factor: consistent income requirements, direct landlord reference checks, and a clear, written set of criteria applied consistently to every applicant. That approach protects you both from a fair housing standpoint and from being caught off guard by a sealed record you didn't expect. Our tenant screening process is built around exactly this kind of layered verification, rather than relying on any single data point.
Frequently Asked Questions
Does Indiana's eviction sealing law apply to all past eviction filings?
No. It applies to cases that were dismissed, decided in the tenant's favor, or overturned on appeal, which are sealed automatically. Tenants with satisfied money judgments can petition for sea, and cases with a final order but no money judgment can be sealed after 7 years. Straightforward, unresolved nonpayment judgments generally remain visible.
Will I be notified if a former tenant's eviction record gets sealed?
No. Sealing happens through the court system, and landlords aren't notified when a specific record is sealed. The practical effect shows up as an absence in future screening reports.
Can I still ask an applicant directly about past evictions on my rental application?
Yes, and it's a good practice to continue. An application question about rental history is a reasonable part of screening, though keep in mind an applicant with a sealed record has no legal obligation to disclose it.
Does this law affect how I handle a current eviction case against a tenant?
No. It governs whether and how a completed case gets sealed afterward, not the eviction process itself. Notice requirements, court procedures, and timelines for filing and completing an eviction are unchanged.
Should I stop using eviction history in my screening criteria altogether?
Not necessarily, but it shouldn't be your only or primary factor. Since some past filings are no longer visible, building a screening process around income verification, direct references, and consistent criteria protects you regardless of what does or doesn't appear in a given background check.
Screen with Confidence, Not Just a Background Check
Indiana's eviction sealing law is one more reason a thorough, well-rounded screening process matters more than any single report. WILMOTH Group's leasing process is built around income verification, direct reference checks, and consistent, fair housing-compliant criteria for every applicant, not just what shows up on a background check. If you'd like help reviewing or strengthening the screening process for your properties, reach out through our property management services page for a free consultation.
