Montana Residential Lease Agreement

Important Information for Montana Landlords

Montana Rental Law Highlights

Security Deposits (Mont. Code Ann. § 70-25-101 to 70-25-206)

• Maximum Amount: No statutory limit (market determines)
• Return Timeline: 30 days after tenant vacates; 10 days if no deductions (Mont. Code Ann. § 70-25-201)
• Itemized Statement: Required if any deductions are made
• Interest Required: No statutory requirement to pay interest
• Move-In Inspection: Strongly recommended to document condition
• Normal Wear and Tear: Cannot deduct for ordinary deterioration
• Penalties: Actual damages plus $500 penalty for bad faith withholding (Mont. Code Ann. § 70-25-206)

Rent and Rent Increases (Mont. Code Ann. § 70-24-441)

• Grace Period: No statutory grace period required
• Late Fees: Must be reasonable; typically stated in lease
• Rent Increase Notice: 30 days for month-to-month tenancies (Mont. Code Ann. § 70-24-441)
• Fixed Term: Cannot increase rent during lease term unless specified
• No Rent Control: Montana does not have rent control laws

Required Disclosures (Mont. Code Ann. § 70-24-301)

• Lead paint disclosure (pre-1978 properties) – Federal requirement
• Landlord’s or authorized agent’s name and address (Mont. Code Ann. § 70-24-301)
• Move-in condition documentation (strongly recommended)
• Smoke detector and carbon monoxide detector information
• Any known defects or issues with the property

Eviction and Termination (Mont. Code Ann. § 70-24-422, 70-27-101 et seq.)

• 14-Day Notice: For nonpayment of rent (Mont. Code Ann. § 70-24-422(2))
• 14-Day Notice: For lease violations with right to cure (Mont. Code Ann. § 70-24-422(1))
• 3-Day Notice: For serious violations (assault, drug activity) (Mont. Code Ann. § 70-24-422(3))
• 30-Day Notice: To terminate month-to-month tenancy (Mont. Code Ann. § 70-24-441)
• Court Process Required: Must file eviction action in district or justice court
• No Self-Help: Lockouts and utility shutoffs are illegal (Mont. Code Ann. § 70-24-411)

Landlord Obligations (Mont. Code Ann. § 70-24-303)

• Habitability: Must maintain premises in fit and habitable condition (Mont. Code Ann. § 70-24-303)
• Essential Services: Heat, water, hot water, electricity must be functional
• Compliance: Must comply with applicable building and housing codes (Mont. Code Ann. § 70-24-303)
• Structural Integrity: Maintain in safe condition
• Smoke Detectors: Required in all dwelling units (Mont. Code Ann. § 50-52-211)
• Carbon Monoxide Detectors: Required in units with fuel-burning appliances (Mont. Code Ann. § 50-52-211)
• Common Areas: Keep clean and in good repair
• Repairs: Make necessary repairs within reasonable time

Entry Requirements (Mont. Code Ann. § 70-24-312)

• Notice Required: 24 hours’ notice required (Mont. Code Ann. § 70-24-312)
• Reasonable Times: Entry during reasonable hours only
• Emergency Exception: May enter without notice in emergency
• Permitted Purposes: Inspection, repairs, showing to buyers/tenants

Tenant Rights and Protections (Mont. Code Ann. § 70-24-401 et seq.)

• Quiet Enjoyment: Right to peaceful possession without interference
• Privacy Rights: Right to 24 hours’ notice before entry
• Security Deposit Protection: $500 penalty plus actual damages for bad faith
• Repair Rights: Limited statutory repair remedies (Mont. Code Ann. § 70-24-406, 70-24-407)
• Retaliation Protection: Protections against retaliation (Mont. Code Ann. § 70-24-431)
• Military Service: SCRA protections for active duty members

Montana-Specific Considerations

No Security Deposit Maximum

• Montana has no statutory limit on security deposits
• Market determines appropriate amount
• Generally one to two months’ rent is customary
• Must return within 30 days or 10 days if no deductions
• $500 penalty plus actual damages for bad faith withholding

10-Day Return if No Deductions (Mont. Code Ann. § 70-25-201)

• 10 days to return if no deductions made
• 30 days if deductions are made with itemization
• Two-tiered timeline based on deductions
• Encourages prompt return when no issues

$500 Penalty for Bad Faith (Mont. Code Ann. § 70-25-206)

• Actual damages plus $500 penalty for bad faith withholding
• Significant statutory penalty
• Encourages proper handling of deposits

14-Day Eviction Notices (Mont. Code Ann. § 70-24-422)

• 14 days notice for both nonpayment and violations
• Right to cure for correctable violations
• 3 days for serious violations (assault, drug activity)
• Balanced framework between landlord and tenant

24-Hour Entry Notice (Mont. Code Ann. § 70-24-312)

• 24 hours’ notice required before entry
• Reasonable hours only
• Emergency exception applies

Fair Housing Requirements

Best Practices for Montana Landlords

• Use comprehensive written leases for all tenancies
• Conduct thorough move-in and move-out inspections with photos
• Document property condition extensively
• Return deposits within 10 days if no deductions or 30 days with itemization (required by law)
• Provide 24 hours’ notice before entry (required by law)
• Provide landlord’s name and address (required by law)
• Keep detailed records of all transactions and communications
• Respond promptly to repair requests
• Maintain property to comply with housing codes
• Install and maintain working smoke and CO detectors
• Never use self-help eviction methods
• Follow proper court procedures for evictions

Montana Climate Considerations

• Four Seasons: Cold winters, warm summers
• Harsh Winters: Very cold temperatures, significant snow
• Temperature Range: -30°F to 95°F typical range
• Heating Critical: Adequate heating system essential October through April
• Snow Removal: Critical for safety and access
• High Heating Costs: Significant utility expenses in winter
• Low Humidity: Dry climate year-round

Billings and Urban Area Considerations

• Local Ordinances: Additional requirements in cities
• Rental Registration: Some cities may require registration
• Certificate of Occupancy: May be required in some jurisdictions
• Lead Paint: Present in older housing; proper disclosure critical
• Rental Inspections: Some cities require inspections

Rural Property Considerations

• Well Water: Landlord typically maintains well system
• Septic Systems: Clarify maintenance responsibilities
• Propane/Heating Oil: Specify who pays and maintains; critical for heat
• Private Roads: Specify maintenance and snow removal responsibilities
• Distance to Services: Remote locations; specify emergency procedures
• Winterization: Critical for unoccupied properties

Resources

• Mont. Code Ann. – Title 70, Chapter 24 (Residential Landlord and Tenant Act of 1977)
• Mont. Code Ann. – Title 70, Chapter 25 (Security Deposits and Deposits for Damage to Property)
• Montana Department of Labor and Industry
• Montana Legal Services Association
• District and Justice Courts (for eviction proceedings)
• Montana Landlord Association