There are 265 historic properties and districts in and around Indianapolis, including nine national historic landmarks. The Benjamin Harrison House was listed on the National Register in 1966. More recently, Engine House No. 23 on Udell Street made the list. There are residential apartment buildings, districts, and homes listed, too, such as the Flanner House Homes neighborhood, the Fletcher Place Historic District, The Glencoe, The Grover, Riverside Drive Historic District, and The Manchester.
Managing historic properties comes with a unique set of challenges, and if you’re lucky enough to own such a special piece of property, you need to be prepared for the complexities of keeping it maintained, updated, and even available to the general public. There’s vintage plumbing to consider, for example. And rewiring and very old porches.
There are standard best practices that you’ll need to follow and there are also actual laws that govern how historic buildings and properties are to be changed, renovated, or improved.
We’re going to talk today about the Indianapolis Historic Preservation Commission, the importance of balancing historic and architectural integrity with modern upgrades, and the responsibilities that owners of historic homes have to the community as a whole.
Questions about your specific property? Get in touch with us at Red Door Management, and we’ll work through the details with you.
Investing in a Historic Home in Indianapolis or Monroe County
Homes are typically at least 50 years old in order to be considered historic. And whether you decide to buy a building that’s actually listed on the National Register of Historic Places or you’re considering a home in a historic neighborhood, there are a few key differences in the way you approach this investment than you would buying a new construction home or a more modern property that’s 10 or 20 years old.
In 1967, the Indianapolis Historic Preservation Commission (IHPC) was established to preserve historically significant areas and structures. The following districts are recognized as historic or conversation districts within the city of Indianapolis or Monroe County.
Fountain Square
Wholesale District
The Old Northside
Woodruff Place
Lockefield Gardens
St. Joseph
Lockerbie Square
Monument Circle
Chatham Arch and Massachusetts Avenue
Herron-Morton Place
Irvington
Fletcher Place
Once you have explored these historic neighborhoods and districts, your next decision is what type of home you want to buy. It might be a Colonial Revival or a Tudor Revival. Perhaps you’re looking for a Saddlebag House or something in the Neoclassical or Art Deco style. There are a lot of options, and a lot of history in these types of architecture.
Working with a real estate professional who specializes in historic properties will help you to understand the specifics of buying a home that carries with it a lot of history and cultural significance. Your professional agent can help you to understand the nuances of historic homes and neighborhoods. You’ll get some smart tips on the importance of preservation and you’ll learn some of the financial requirements that come with these properties.
Especially important is professional guidance on inspections. You need an investment property that’s more than pretty; you need one that’s in good condition and able to withstand the renovations and updates that it may need.
Let’s Talk About Financing that Historic Property
Financing your property is an important step in becoming an investor in historic real estate.
Weighing your options is part of any investment plan. In this particular case, you’re simply buying an old property or one that’s in a very old neighborhood. There’s always the option of paying in cash. This is sometimes a smart move for investors who want to avoid expensive interest and mortgage rates.
But, if you’re leaning more towards a traditional mortgage, you’ll be happy to learn that lenders often view historic homes as safe investments. They’re likely willing to lend you the money that you need to make the purchase, assuming you’re a healthy credit risk. Just be prepared for potentially complex inspection and appraisal requests. The age and historical impact of your property may influence what you’re able to borrow and how you’re able to structure your loan.
Q: Aren’t there grants and other financial incentives for property restorations and even purchases? |
A: Sometimes you can find financial help through community partners, associations, and occasionally government sources. But, most grants for these purposes are only made to nonprofit organizations and not individual property owners. However, renovating historic commercial or residential properties may qualify you for tax breaks, so make sure you talk to your CPA or tax professional. |
Inspections for Historic Indianapolis Properties
Whether you are buying or you already own your historic property, the inspection of your property will be especially important when you’re preparing to make renovations and upgrades.
Because of their age, historic homes can have considerations and issues that newer properties will rarely encounter. We always recommend homeowners hire an experienced inspector familiar with historic homes. You want someone who already has a solid understanding of:
Outdated electrical issues that may require rewriting. | Roofing problems and water intrusion. | Structural concerns inside and out. |
Plumbing issues and problems around old pipes. | How to heat and cool a historic home. | Floors, woodwork, and porches. |
This inspection can give you a clear picture of what you're getting into, and allow you to budget for any repairs that may be needed once you close on that property.
Indianapolis Historic Preservation Commission and Property Owners
The IHPC is responsible for the local designation of historic properties, buildings, homes, and landmarks, and this agency will help guide you during any restoration of historic properties. They provide design and zoning reviews and issue approvals for locally designated historic districts, conservation areas, and individually designated properties.
When you decide that repairs are needed to your historic home, or you want to make renovations or upgrades or improvements, you’ll have to apply for a Certificate of Appropriateness before starting any work.
The IHPC’s design review process is in place to consistently ensure that the unique look and character of Indianapolis’s historic district is maintained. Recommendations are already in place within the historic area plan for your neighborhood. These are the things that the IHPC staff will review during the application period for your Certificate of Appropriateness:
Existing exterior facades | Roofing | Fencing |
Exterior light fixtures | Windows and doors | Porches |
Sidewalks | Driveways | Trees and landscaping |
Siding | Paint colors | Swimming pools |
Masonry | Exterior mechanical equipment | New construction |
Once you apply for the Certificate of Appropriateness, you’ll have to pay the required fee, which depends on what the Division of Planning believes it should be. Then, a legal notice is served, which will alert neighbors and local property owners that there’s a pending application. This application must be presented at a public hearing.
For a pending COA or rezoning/variance application scheduled for a public hearing, the applicant is required to contact all property owners within 660 feet or two property owners deep from the property line, whichever is lesser. Notice must also be given to a list of registered neighborhood organizations. The IHPC provides the names and addresses of these organizations.
So, there’s a bit of work involved before you even get started on any renovations. This makes the management of historic properties a bit more involved and a lot more complex.
Be prepared.
Indianapolis Property Management: Prepare for Maintenance Costs and Requirements
The way you maintain and update your historic property will be unique to the property itself, but we can tell you one thing that’s pretty consistent across the board: owning a historic property is often more expensive and detailed than owning a newer property. Especially when we’re talking about maintenance. You likely prepared for that before you even purchased the property.
You can expect regular maintenance requirements, renovations, and long-term costs. This is not so unique; like any investment property, historic homes require regular upkeep to maintain their condition and value. Because your property is historic, you may want to plan and budget for some extra and more intensive things such as:
More frequent painting | Repairs and upgrades of old plumbing or electrical systems | Caring for original woodwork |
Don’t be surprised by these costs; you want to factor them into your maintenance budget.
Long-term costs can include things like roofing. Maybe you’ll have to replace a roof made of historic materials. Or, you might find yourself updating the heating and cooling systems to be more efficient. Maybe it’s time for air conditioning. The cost of making modern upgrades will be higher than those upgrades you would make for newer homes.
How to Balance a Respect for History with a Need for A/C
Indianapolis has been a city since March 1, 1847. With nearly two hundred years of history, architecture, and real estate telling stories through buildings, neighborhoods, and local culture, investors will want to balance the history of old homes with the needs of modern city dwellers.
A good steward of history will make it a point to respect the history of Indianapolis while also meeting the needs and the demands of the current housing market. If you’re living in the property yourself, you’re obviously thinking of your own comfort and safety. If you’re renting your property out to tenants, you’re thinking about their comfort and safety as well as your own profitability.
The demand for historic homes is high, despite modern culture’s appetite for all things new. Part of this is demand; there are a lot more people looking for homes now than there were in the nineteenth century. While you want to maintain the character and charm that are part of Indianapolis’s, history, you also want to provide the type of housing that people in Indianapolis need today.
In 2024, convenience is everything. Residents in the mid-1800s would never have imagined indoor plumbing, let alone smart home technology. Today, real estate investors and homeowners are focusing on energy-efficiency and sustainable materials. Homeowners and tenants are looking for open, intuitive spaces, especially if they’re remote workers or moving in with an entire family. It’s often a challenge to maintain historic character even while you modernize your home, but it’s a challenge worth taking on.
It can be done. We know this because as Indianapolis property managers, we’ve helped owners and investors and tenants care for these homes. Here are two of the best tips we can come up with to offer anyone who is interested in preserving the history and the culture of Indianapolis’s oldest homes, neighborhoods, and buildings.
Tip No. 1 Respect the Architecture Invest in a plan for maintaining the original architectural elements when you can, especially if they showcase the property's era. When making repairs and upgrades, contract with experts who have access to restorative methods that retain the building's character while reinforcing its structure. Indiana Landmarks is a company that keeps track of vendors and contractors who are authorized and specialize in historic work. | Tip No. 2 Consider Period Properties Keep any aesthetics aligned with the time period of your property. Highlight features like exposed brick or original hardwood floors. Not only does this preserve the history of your property, but it also appeals to tenants who are looking for special décor and unique finishes and features. It’s a good selling point. Use antique or vintage fixtures and elements that complement the historical theme. |
If you’re investing in a property that’s historic or special to the city of Indianapolis, you’ll need some professional help. Don’t undertake the repairs and renovations yourself. Make sure you’ve contracted with reliable vendors and service professionals who can provide quality work that’s sensitive to your historic needs.
Embracing the Appeal: Design and Historical Significance
Indianapolis has neighborhoods full of historic homes that are more than just living spaces; they're culturally important fixtures in a city that values its history and unique beauty. Residents and visitors admire these homes, neighborhoods, and districts, and you want to continue giving them something to love.
Let’s say you’re renting out a historic home in a registered neighborhood. Highlighting these architectural details will always set your property apart in a crowded market. However, the charm of history does not satisfy all the needs of contemporary living. How do you offer the comfort and functionality modern renters expect while also preserving the historical essence that makes your property unique?
Tourism is an important part of the local economy, and so everyone in Indianapolis has an interest in keeping these homes preserved like the treasures they are. Additionally, these historic homes and buildings offer a glimpse into the architectural techniques and design preferences of past eras, enriching our understanding of societal progress.
When real estate investors understand and appreciate the social and economic benefits of preservation, it fosters a sense of responsibility towards these properties. They become more than just investments; they transform into legacies worth preserving.
As Indianapolis property managers, we want to embrace those same intentions and help you to preserve and even promote the value of these very special homes.
Enter the Need for Modern Amenities
Homeowners and tenants want technology. With energy costs rising and temperatures rising too, there’s a high demand for energy-efficiency systems and appliances. Tenants and homeowners are looking for sustainability, not only for the good of the planet but for the lower electric bills. Tenants are looking for rental homes that provide parking and accommodate pets. These things are not always easy to provide when we’re renting out historic homes.
And that’s the balance of maintaining historic character even while you modernize your rental home.
It won’t feel good to tear down the history of a building or a home in order to facilitate video doorbells at the front door and stronger WiFi inside of the property. Be strategic as you plan and execute these updates and upgrades.
For historic properties, balancing your needs with historic preservation often means retrofitting interiors and potentially making structural adjustments to cater to these needs without diminishing the property's historical integrity.
Here are some of the most common updates and renovations that we see owners of historic homes in Indianapolis making in order to provide modern amenities and conveniences:
Tech Upgrades Wi-Fi boosters and smart locks can be added without altering the property's facade. These smart home features provide convenience and appeal to tech-savvy renters. | Kitchen and Bath Revamps While the heart of the home, the kitchen can be modernized with energy-efficient appliances and updated fixtures that reflect the era's style while providing modern performance. |
Laundry Solutions If space allows, in-unit washer and dryer installations add immense value. For tighter spaces, compact or stackable units that fit within existing layouts are excellent alternatives. | Energy Efficiency Incorporating energy-efficient solutions such as LED lighting and updated heating systems complements the green-conscious lifestyle that’s popular in Indianapolis without compromising the home's historical aesthetics. |
High-speed internet, smart home technology, updated kitchens, and in-unit laundry facilities rank high on the list of sought-after amenities. But, these things do not have to diminish the historic significance of your property.
Let’s talk about your historic Indianapolis property and how we can help you manage it. Contact our team at Red Door Property Management.
