Montana Landlord Tenant Laws

Contents

DISCLAIMER

This article provides general information and is not legal advice. For accuracy and specific guidance on landlord-tenant laws, consult an attorney before making any decisions or taking action.

Overview

DEPOSIT

  • There is no maximum security deposit limit in Montana.
  • Landlords have 30 days to return deposits in Montana.

RENT CONTROL

  • Rent control is banned in Montana.
  • Rent increases are expected to be reasonable and kept in line with market rates.
  • Landlords must provide 30 days' written notice before raising the rent.

NOTICE OF ENTRY LAWS

  • Landlords are expected to give at least 24 hours before entering an occupied property.
  • Notice for entry requirements are waived in the case of emergencies.

RE-KEYING LAWS

  • No statute.

RENTAL AGREEMENT

  • Oral lease agreements are allowed in Montana for leases of a year or less.
  • It is always recommended to put lease agreements in writing to avoid legal disputes.

LATE FEES & GRACE PERIODS

  • Late fees are allowed in Montana.
  • A late fee of $20 or 20% of the monthly rent, whichever amount is greater, is deemed ‘reasonable’.
  • There is no mandatory grace period in Montana.

SMOKING LAWS

  • Landlords are allowed to prohibit smoking in and on their properties.

PET LAWS

  • Pet fees and deposits are allowed in Montana.

SECTION 1

Montana Landlord-Tenant Rights and Responsibilities 

Both landlords and tenants in Montana have specific rights and responsibilities under the Residential Landlord and Tenant Act of 1977 (Mont. Code Ann. Title 70, Chapter 24). This law aims to clarify and modernize the rental of dwelling units, as well as encourage landlords and tenants to maintain and improve housing quality. 

Below is an overview highlighting the key aspects of landlord-tenant rights and responsibilities in Montana.

Tenant Rights and Responsibilities

(Mont. Ann. Code §§70-24-321)

Tenant Rights

  • Right to live in a habitable rental that meets local health and safety codes.
  • If repairs are needed, the tenant can give the landlord written notice, and they must make the repairs within 14 days.
  • Tenants can take legal action, such as suing the landlord if they fail to make repairs or comply with security deposit regulations.

Tenant Responsibilities

  • Keep the premises as clean and safe as the condition permits.
  • Dispose of all ashes, garbage, rubbish, and other waste cleanly and safely.
  • Use all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances in a reasonable manner.
  • Not destroy, deface, damage, impair, or remove any part of the premises.
  • Conduct yourself and your guests in a manner that will not disturb the neighbors' peaceful enjoyment of the premises.
  • Use the parts of the premises reasonably, considering their intended purposes.
  • Not engage in or allow any activity on the premises that creates a reasonable potential for damage, destruction, or injury to neighboring tenants.

Landlord Rights and Responsibilities

(Mont. Ann. Code §§70-24-303)

Landlord Rights

  • Collect rent payments when due.
  • Charge a security deposit to cover costs like damage beyond normal wear and tear.
  • Pursue a formal eviction if the tenant violates the lease agreement.

Landlord Responsibilities

  • Comply with applicable building and housing codes materially affecting health and safety.
  • Not knowingly allowing any tenant or other person to engage in any activity that creates a reasonable potential for damage, destruction, or injury to neighboring tenants.
  • Make all repairs and keep the premises in a fit and habitable condition.
  • Keep all common areas of the premises in a clean and safe condition.
  • Maintain in good and safe working order all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances.
  • Provide and maintain appropriate receptacles for the removal of garbage, ashes, rubbish, and other waste, and arrange for their removal.
  • Supply running water, reasonable amounts of hot water at all times, and reasonable heat between October 1 and May 1.
  • Provide and maintain locks and furnish keys reasonably adequate to ensure safety to the tenant's person and property if requested by the tenant.
  • Provide and maintain smoke detection devices and carbon monoxide detection devices.

Sources: Tenants and Landlords | Montana Department of Justice (.gov), The Residential Landlord and Tenant Act of 1977.

Required Notices Before Entry

In Montana, landlords are permitted to enter rental units for specific reasons, including maintenance, inspections, and property showings. 

According to Montana law, landlords must provide tenants with at least 24 hours’ notice before entering the property, unless there is an emergency situation that necessitates immediate access. This notice can be delivered verbally or in writing, ensuring that tenants are informed of the landlord's intentions to enter their unit. (Mont. Ann. Code §70-24-312)

Late Fee for Rent and Grace Periods in Montana

Landlords are allowed to impose late fees for rent in Montana. Any late fee that is imposed must be reasonable and clearly stated in the lease agreement. 

In Montana late fee of $20 or 20% of the monthly rent, whichever amount is greater is deemed ‘reasonable’. As well as this, any expense incurred as a result of the late rent or rent collection process can be charged to the tenant in addition to the late fee.

There is no mandatory grace period for paying rent in Montana.

(Mont. Ann. Code §70-6-606)

SECTION 2

Montana Rent Increase Laws

Does Montana Have Rent Control Laws?

In 2023 Montana legislators signed the House Bill 483 which effectively bans rent control in the state of Montana. This legislation prevents the cities, counties, and other local governments in Montana from creating or enacting rent control ordinances or laws that would limit how much landlords can raise the rent in any given year.

That being said, there are still laws regarding when and how much notice a landlord needs to give when raising the rent.

Notice Required to Raise Rent in Montana

In Montana, the general practice is that landlords must provide 30 days' notice for rent increases in a month-to-month tenancy, though this is not codified in a specific statute for rent increases. Instead, this practice is derived from the notice required to modify the terms of a rental agreement, much like the notice required for termination.

Mont. Ann. Code. § 70-24-201 allows landlords and tenants to set rental terms within their agreement, meaning the notice period for rent increases could be stipulated directly in the lease. If the lease does not specify, a 30-day notice is typically required.

For tenants on a week-to-week basis, a minimum of 7 days' notice is generally required.

These notice requirements ensure that tenants have time to prepare for the financial impact of a rent hike or to seek alternative housing if necessary.  

Limitations to Montana Rent Increase Laws

While landlords have the right to increase rent at any time and by any amount, certain restrictions apply:

  • Discrimination: Rent increases cannot be based on discriminatory practices against protected classes as defined by the Fair Housing Act, which includes race, color, national origin, religion, sex, familial status, age, creed, and disability.
  • Lease Terms: Landlords cannot raise rent during the term of a fixed lease unless the lease agreement explicitly allows for such increases. Rent can only be adjusted after the lease term expires, provided that the landlord gives the required notice.
  • Retaliation: Any rent increase in response to a tenant exercising their legal rights, such as reporting a violation or organizing a tenants' group, is considered retaliatory and is prohibited by law.

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SECTION 3

Montana Rental Application Laws

Montana's rental application laws are designed to protect both landlords and tenants, ensuring a fair and transparent rental process. Understanding these regulations is crucial for both parties to avoid legal complications.

Montana Tenant Screening Laws Overview

Montana's tenant screening laws differ significantly from those of neighboring states. It's crucial for landlords to understand the specifics to ensure compliance and protect their real estate business.

Here are a few key points about Montana’s tenant screening laws:

  • Landlords can charge any amount for application fees, as there is no legal cap.
  • There is no limit on the amount landlords can request for security deposits.
  • Application fees, which are separate from security deposits, are non-refundable.

Failing to follow Montana’s regulations can result in wasted time, lost income, and added stress for landlords.

Maximum Rental Application Fee Limits In Montana

There is no cap on how much landlords can charge as a rental application fee in Montana.

However, it is advisable to set the fee at a level that covers the costs associated with processing the application, such as background checks. 

Any application fee that is collected is non-refundable, which means tenants should be aware that they will not receive this fee back, regardless of whether their application is successful or not.

Fair Housing Laws In Montana

While Montana does not have specific laws limiting housing discrimination, it adheres to the federal Fair Housing Act (FHA), which prohibits discrimination based on race, color, national origin, religion, sex, familial status, disability, and, in some cases, criminal history. 

Landlords must ensure that their screening practices comply with these laws, treating all applicants equally and avoiding discriminatory practices.

Notice of Eligibility

Landlords must inform tenants about the specific criteria used for screening applications, including the reasons for potential approval or denial. To document this communication, landlords should obtain a signature from the tenant acknowledging their understanding of these criteria.

Consent for Credit Checks In Montana

Under the Federal Credit Reporting Act (FCRA), landlords in Montana must obtain written consent from applicants before conducting credit checks. This consent should be clearly stated on the rental application form to ensure compliance with the law.

Essential Components of a Rental Application In Montana

A well-structured rental application in Montana should include the following elements:

  • Personal Information: Name, contact details, and identification.
  • Rental History: Previous addresses and landlord references.
  • Employment Details: Current employer and job status.
  • Income Information: Proof of income to assess financial stability.
  • Credit History: Consent for landlords to conduct credit checks.
  • Personal References: Contacts who can vouch for the applicant’s character.
  • Background Check Consent: Acknowledgment for conducting background checks.

Important Disclosures

Landlords are also required to provide essential disclosures to tenants, which may include:

  • The condition of the property.
  • Any known hazards.
  • Policies regarding shared utilities.
  • Rent control regulations, if applicable.
  • Smoking policies and security deposit requirements.

Source: Free Montana Rental Application Form | LawDistrict

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SECTION 4

Montana Security Deposit Laws 

Montana's security deposit laws aim to create a fair and transparent rental environment for both landlords and tenants. These laws, outlined in the Montana Code Annotated (MCA) Title 70, Chapter 25, establish guidelines for collecting, holding, and returning security deposits.

What Is The Maximum Security Deposit Limit In Montana?

Unlike many other states that cap security deposits at one month's rent, Montana law does not limit the amount a landlord can collect as a security deposit. However, it's important to note that the deposit amount must be clearly stated in the rental agreement.

Are Pet Deposits Allowed In Montana?

Landlords in Montana can require a pet deposit, and they are typically treated as part of the security deposit. There is no specific statute setting limits for pet deposits, so they would fall under the general security deposit rules.

Landlords cannot, however, charge a deposit or fee for service dogs and emotional support animals, which are protected under the Fair Housing Act.

What Can Landlords Deduct From the Security Deposit In Montana?

Landlords can only make deductions from the security deposit for specific reasons, such as:

  • Unpaid rent
  • Late charges
  • Utilities
  • Other money owed as penalties, according to the lease
  • Actual cleaning expenses, including reasonable costs of the landlord's labor
  • Damages beyond normal wear and tear

Importantly, landlords cannot deduct cleaning charges from the security deposit unless written notice is given to the tenant. This notice must outline what cleaning was not done by the tenant and provide a 24-hour window for the tenant to complete the required cleaning. This is specified in MCA § 70-25-201(3). If a tenant vacates without notice, this requirement is waived.

If a landlord wrongfully withholds any part of the security deposit, they may be liable for damages equal to the amount wrongfully withheld. Tenants can pursue legal action, and MCA § 70-25-204 allows for the possibility of recovering attorney's fees if they prevail in court. The burden of proof is on the landlord to justify any deductions.

Must Landlords Provide Itemized Receipts For Deposit Deductions In Montana?

Yes, landlords must provide an itemized list of damages and cleaning charges within 30 days of the tenant vacating the property. This list must be sent to the tenant along with the remaining balance of the security deposit. (MCA § 70-25-202(1))

If a landlord fails to provide the tenant with a written list of damages or cleaning charges within the specified timeframe (30 days), they forfeit the right to deduct from the security deposit. This is established in MCA § 70-25-203. The landlord must also return the entire deposit if they miss this deadline.

How Must Landlords Hold Security Deposits In Montana?

Montana law does not require landlords to hold security deposits in a separate account. Landlords can combine security deposits with other funds.

How Long Do Landlords Have to Return Security Deposits In Montana?

Landlords have 30 days to return the security deposit or provide an itemized statement of deductions after the tenant vacates the premises, as per (MCA § 70-25-202(1)). If no damages or unpaid rent are found, the landlord must return the security deposit within 10 days. (MCA § 70-25-202(1)(b))

Tenants are required to provide the landlord with a new address upon vacating the premises. Failure to do so does not bar the tenant from recovering the security deposit, but it may delay the landlord's ability to return the funds. (MCA § 70-25-205)

Do Landlords Need To Pay Interest On Security Deposits In Montana?

Montana landlords are not required to pay interest on held security deposits.

Security Deposit Laws Around Property Inspections

At the beginning of the tenancy, Landlords must furnish a written statement detailing the condition of the property. (MCA § 70-25-206) If the landlord fails to provide this statement, they may be barred from claiming deductions for damages unless they can prove the damage was caused by the tenanancy the landlord or tenant can request an inspection of the rental property within one week prior to the termination 

At the end of the tenancy. This gives both parties the opportunity to assess any potential damages and discuss cleaning responsibilities, helping prevent disputes over the security deposit. (MCA § 70-25-201(2)

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SECTION 5

Montana Rental Agreement Laws

A rental agreement, or lease, in Montana is a legally binding document between a landlord and a tenant, outlining the terms for renting a property. Montana law mandates that all leases be in writing to ensure clarity and enforceability.

Are Oral Lease Agreements Allowed In Montana?

Yes, oral lease agreements are allowed in Montana, but they come with limitations. Oral rental agreements are legally valid for lease terms less than one year. Any lease agreement for a term of one year or more must be in writing to be enforceable under the Statute of Frauds. (MCA § 28-2-903),

Considerations for Oral Lease Agreements in Montana

  • Enforceability: Oral leases are enforceable if the term is less than one year, but they can be harder to prove in the event of a dispute since there is no written document.
  • Tenant Protections: Even without a written agreement, tenants are still protected by the Montana Residential Landlord and Tenant Act. This means landlords and tenants are both subject to the legal obligations and rights outlined in the state's landlord-tenant laws.
  • Terms: If no written agreement exists, the default terms for the rental (such as rent payment, responsibilities for repairs, and notice periods) are governed by Montana's landlord-tenant statutes.

While oral agreements are legal, it is strongly recommended that landlords and tenants enter into a written lease agreement to avoid any misunderstandings or legal issues that could arise from miscommunication. Written agreements provide clear documentation of both parties' responsibilities and rights.

Key Components of a Montana Lease Agreement

  • Identification of Parties: The lease must include the full names and contact information of both the landlord and tenant. This identification is crucial for accountability regarding the lease terms.
  • Property Description: A detailed description of the rental property, including its address and any necessary disclosures (e.g., lead-based paint warnings for properties built before 1978), is required under federal law.
  • Lease Terms: The lease should specify its duration—whether fixed-term or month-to-month—and any renewal options. Montana law permits both types, offering flexibility for both parties.
  • Rent and Security Deposit: The lease must state the rent amount and due dates. In Montana, security deposits can be any amount but must be returned within 10 days if no deductions are made, or within 30 days with an itemized list of deductions if applicable.
  • Maintenance Responsibilities: The lease should clarify maintenance obligations. Landlords must keep the property habitable, while tenants are responsible for cleanliness and timely reporting of repair needs.
  • Utilities and Services: The lease should specify which utilities are included in the rent and which are the tenant's responsibility, helping to avoid disputes.
  • Termination and Renewal Conditions: Conditions for lease termination, including notice requirements (at least 30 days for landlords) and options for renewal, must be clearly stated. Tenants should be informed of their rights regarding early termination.
  • Additional Clauses: Including specific provisions can address unique needs, such as rent increases or subletting policies. Consulting legal counsel for these clauses is advisable to ensure compliance with Montana law. 

(MCA § 70-24-201)

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SECTION 6

Montana Laws Around Breaking a Lease

In Montana, both landlords and tenants must understand their rights and responsibilities regarding lease termination, as outlined in the Residential Landlord and Tenant Act of 1977. This act governs the legal framework for rental agreements, ensuring compliance with specified notice requirements and valid grounds for lease termination.

Notice Requirements

To terminate a rental agreement, either party must provide adequate written notice. 

  • Notice Required To Terminate Tenancy With A Fixed End Date: No notice is required as the lease simply expires.
  • Notice required To Terminate A Month-to-Month Lease: 30 days’ written notice (Mont. Ann. Code §§70-24-441).
  • Notice Required To Terminate a Week-to-week Tenancy: 7 days’ written notice (Mont. Ann. Code §§70-24-441).

Tenants with fixed-term leases cannot terminate early unless the landlord agrees or specific exceptions apply, such as military service or domestic violence situations. 

Landlords must adhere to longer notice periods, for tenants aged 62 or older or those with disabilities.

Legal Grounds for Breaking a Lease

Tenants may terminate their lease without penalty under certain conditions:

  • Active Military Duty: Tenants called to active duty can break their lease under the Service Members Civil Relief Act.
  • Uninhabitable Conditions: If the property violates health or safety standards, tenants may terminate the lease.
  • Landlord Harassment: Harassment or privacy violations by the landlord can justify lease termination.
  • Domestic Violence: Victims can terminate their lease by providing appropriate documentation, such as a protective order.

SECTION 7

Montana Eviction Process and Law

Montana's eviction process is governed by the Montana Residential Landlord and Tenant Act, which outlines the rights and responsibilities of both landlords and tenants. This law ensures that evictions are conducted legally and fairly, preventing landlords from forcibly removing tenants without a court order.

Grounds for Eviction in Montana

Landlords in Montana can evict tenants for specific reasons, including:

  • Non-payment of Rent: If rent is not paid within the due date, landlords may issue a 3-day notice to pay or vacate (MCA § 70-24-422).
  • Lease Violations: Tenants must adhere to lease terms. Violations, such as property damage or illegal activities, can lead to a 14-day notice to remedy the situation or leave.
  • End of Lease Term: If a lease expires, landlords must provide a 30-day notice for tenants to vacate.
  • Health and Safety Violations: If tenants engage in behavior that endangers health or safety, this can also be grounds for eviction.

Montana Eviction Notice

Landlords must provide written notice to tenants before initiating an eviction. The type of notice and duration varies based on the grounds for eviction:

  • Non-payment of Rent: Landlords must issue a 3-day notice to pay rent or vacate. This notice specifies the overdue amount and informs the tenant that they have three days to either pay the rent or leave the property (MCA § 70-24-422).
  • Lease Violations: For violations other than non-payment, landlords typically provide a 14-day notice to cure the violation or vacate. This notice must detail the specific lease breach and give the tenant a chance to remedy the situation (MCA § 70-24-422(1)(a)).
  • Repeated Lease Violations: If the tenant's noncompliance is a repeat of a prior issue within 6 months, the landlord may terminate the rental agreement with at least a 5-day written notice to quit with no option to remedy. (MCA § 70-24-422(1)(d)).
  • Illegal Activities: In cases of illegal activities, landlords may issue a 3-day unconditional notice to quit, requiring the tenant to vacate immediately without an opportunity to remedy the situation (MCA § 70-24-422(3)).
  • Unauthorized pets persons residing in the rental: The landlords can give a 3-day notice to cure or vacate. (MCA § 70-24-422(1)(b) and (c)).
  • End of Lease Term: For month-to-month tenancies, a 30-day notice is required to terminate the lease, informing the tenant they must vacate by the end of the notice period (MCA § 70-24-441).

Montana Eviction Process

The eviction process typically follows these steps:

  • Notice to Quit: The landlord serves a written notice, specifying the reason for eviction and the timeframe for compliance.
  • Filing a Complaint: If the tenant does not comply, the landlord can file a complaint in court (MCA § 70-27-101).
  • Court Hearing: Both parties present their cases in court. The judge decides based on the evidence.
  • Writ of Possession: If the court rules in favor of the landlord, a writ of possession is issued, allowing the landlord to regain control of the property.
  • Enforcement: The sheriff's office enforces the writ, ensuring the tenant vacates the premises.

 

SECTION 8

Montana HOA Laws

Homeowners associations (HOAs) in Montana operate under a framework of laws that govern their formation, management, and activities. Understanding these regulations is crucial for both landlords and tenants to ensure compliance and protect their rights.

Below are some of the laws and regulations that a homeowners association must comply with.

Montana Nonprofit Corporation Act

Most HOAs in Montana are organized as nonprofit corporations, governed by the Montana Nonprofit Corporation Act (Mont. Code Ann. § 35-2-113 et seq.). This act outlines the structure, governance, and operational procedures for these associations. 

To verify an HOA's corporate status, you can contact the Montana Secretary of State.

Montana Unit Ownership Act

This act (Mont. Code Ann. § 70-23-101 et seq.) regulates condominium associations that choose to adhere to it by filing a declaration with the local county recorder. It establishes guidelines for the creation, governance, and authority of these associations.

Montana Property Code

The Montana Property Code (Mont. Code Ann. § 70-17-101 et seq.) addresses property rights, including easements and servitudes. It also includes regulations on homeowners' association restrictions, such as solar energy rights and the management of common areas.

Montana Human Rights Act

Similar to the federal Fair Housing Act, this act (Mont. Code Ann. § 49-2-101 et seq.) prohibits discrimination in housing based on various factors, including race, gender, and disability. It ensures equal housing opportunities for all residents in Montana.

Recent Legislative Changes

In 2019, Senate Bill 300 was enacted, limiting HOAs from imposing more stringent restrictions than those in place at the time of property purchase. Homeowners can request exemptions from new regulations, which must be recorded with the county clerk.

Responsibilities and Rights

HOAs are tasked with maintaining community standards and property values, collecting dues for maintenance, and enforcing community rules. They must also keep accurate records and hold annual meetings to discuss proposed changes and elect board members. Homeowners have the right to vote on significant issues and propose amendments to governing documents, which require a two-thirds majority for approval. 

SECTION 9

Montana Squatters Rights Laws

In Montana, the legal doctrine of adverse possession allows individuals to potentially gain ownership of a property they do not legally own, under certain conditions. This can have significant implications for both landlords and tenants. 

Below is an overview of the key requirements and considerations around adverse possession in Montana.

Requirements to Make an Adverse Possession Claim

To successfully claim adverse possession in Montana, the following criteria must be met:

  • Actual Possession: The individual must physically occupy and use the land as an owner would, such as maintaining or improving the property.
  • Open and Notorious Possession: The occupation must be visible and apparent to the actual owner, providing them with the opportunity to take action if desired.
  • Continuous Possession: The individual must occupy the property without interruption for a period of at least 5 consecutive years in Montana.
  • Exclusive Possession: The possession must be without the permission of the property owner and not shared with others, including the legal owner.
  • Hostile Possession: The occupation must be against the right of the true owner, meaning the individual must not have a valid lease or rental agreement with the owner.

Additionally, the individual must pay property taxes for the land they are occupying for at least 5 consecutive years.

SECTION 10

Montana Landlord Tenant Legal Resources

Below, you’ll find some helpful Montana landlord–tenant law resources:

Documents and Forms

Legal Resources

Montana State Agencies & Regulatory Bodies

Montana Realtor and Landlord/Tenant Associations