Montana Tenant Screening Laws: What Landlords Can and Cannot Do
Montana does not cap screening fees or deposits, but the deposit return is on a clock and nonrefundable fees must be in writing. The FCRA and fair housing law govern who you approve. Here is how to screen legally in 2026.
Tenant screening in Montana is governed lightly by state statute and heavily by federal law. The Montana Residential Landlord and Tenant Act sets the deposit return rules, but it says little about how you evaluate an applicant – which makes the federal Fair Credit Reporting Act and fair housing law the real rulebook.
This guide covers what you may screen, what you can charge, and the deposit return rules. If you are new to the mechanics, our overview of how to screen tenants step by step pairs well with the Montana-specific points below.
Video: a plain-language walkthrough of Montana tenant screening, application fees, deposits, and adverse action.
Key Takeaways: Montana Tenant Screening Laws
- No application-fee cap. Montana does not limit screening fees, but they must be reasonable and tied to the actual cost of the report.
- No deposit cap. Montana does not limit the deposit amount, leaving it to the lease.
- Return is on a clock. Thirty days with deductions, or ten days when nothing is withheld, with a written itemization.
- Nonrefundable fees must be in writing. Montana bars nonrefundable fees unless they are clearly identified as nonrefundable in the agreement.
What Montana Law Lets You Screen
Montana gives landlords broad authority to evaluate an applicant. With written permission you may obtain a consumer report covering credit, rental and payment history, employment and income, and public records such as criminal convictions and civil judgments, and you may decline applicants who fail your written standards.
Because Montana regulates so little of the screening process, consistency is the safeguard: write your criteria down and apply them identically to every applicant. Our guide to the minimum credit score for renting explains how to set a threshold that screens for risk without screening out a protected class.
Application Fees in Montana: No Cap
Montana sets no maximum on a tenant application or screening fee. The practical limits are reasonableness and consistency: tie the fee to the actual cost of the report and charge the same amount to every applicant.
Montana does add a wrinkle on fees generally: a nonrefundable fee, such as a cleaning fee, is barred unless it is clearly identified as nonrefundable in writing. Put the purpose and the nonrefundable nature of every charge in the lease or application.
Label nonrefundable charges in writing
Montana does not allow a nonrefundable fee unless it is clearly identified as nonrefundable in the written agreement. Spell out the purpose of every charge so a fee does not become a refundable deposit.
Security Deposits and the Return Clock
Montana does not cap the security deposit, leaving the amount to the lease. What the state regulates is the return: the landlord must provide a written, itemized list of any deductions and return the balance within thirty days, or within ten days when no deductions are taken.
A landlord who wrongfully withholds can face penalties, including the loss of any claim to the deposit when the retention is in bad faith. Our deeper look at Montana security deposit laws covers permitted deductions and the return timelines.
Montana Fair Housing and Protected Classes
The Montana Human Rights Act prohibits housing discrimination on the basis of race, color, religion, sex, national origin, familial status, disability, age, marital status, and creed, broader than the federal floor. Montana does not add source of income as a statewide protected class.
That means a landlord is not required by state law to accept a housing voucher, though uniform treatment of every applicant remains the rule. For the federal baseline, see our Fair Housing Act guide for landlords.
Criminal History, Credit, and Eviction Records
A criminal record can be a lawful basis to decline in Montana, but a blanket no-record policy is the most common fair housing trap. HUD’s 2016 guidance treats criminal-records screening under a disparate-impact lens, so a flat ban can violate the federal Fair Housing Act even without intent. Use an individualized assessment tied to the offense, how recent it is, and safety.
Credit history and prior evictions are cleaner when your standard is objective and consistently applied. You can read how eviction filings arise on our Montana eviction notice laws page. Decide your criteria in advance and apply them the same way every time.
The FCRA: Consent and Adverse Action
When you pull a screening report through a consumer reporting agency, the federal Fair Credit Reporting Act governs the transaction – and in Montana, where state law is largely silent on screening, this is the rule that matters most. You need a permissible purpose and written authorization before ordering the report, and you must send an adverse action notice if the report drives a denial, a higher deposit, or a co-signer demand.
The notice must name the reporting agency, state that it did not make the decision, and explain the applicant’s right to a free copy and to dispute it. Our FCRA compliance guide and the companion walkthrough of the adverse action notice spell out the requirements.
Fair Housing Compliance for Montana Landlords
The Montana Human Rights Act and the federal Act demand the same discipline, and Montana’s broader class list raises the stakes: uniform criteria, uniform application, and documentation showing you treated every applicant by the same yardstick.
Publish your criteria before you advertise, screen every applicant against the identical standard, and keep the file. Consistency is far more persuasive than an after-the-fact explanation.
A Compliant Montana Screening Process
Turn the rules into one repeatable sequence. First, publish objective criteria. Second, collect a reasonable, uniform screening fee and identify any nonrefundable charge in writing. Third, get written consent and order the report. Fourth, evaluate every applicant against the identical standard. Fifth, if you decline based on a report, send the adverse action notice promptly – and return the deposit within thirty days, or ten with no deductions.
Income verification is the step landlords most often shortcut; our guide to verifying tenant income shows how to confirm ability to pay without singling anyone out. Run the same steps for every applicant and your file will tell a clean, consistent story.
Common Mistakes That Create Liability
In a permissive state the recurring errors cluster around fees and the deposit clock. Charging a nonrefundable fee without labeling it in writing, or missing the thirty-day return – or the ten-day deadline when nothing is withheld – create exposure. Charging uneven application fees and denying an applicant on a report without the FCRA notice round out the list.
One standard, every applicant. Montana hands you the freedom to design your own process but pins down the deposit return and the written-fee rule. A single written rubric, used the same way each time, is your strongest defense.
Cleaning Fees and Nonrefundable Charges in Montana
Montana’s rule on nonrefundable fees is easy to trip over. The state does not forbid a nonrefundable charge such as a cleaning fee, but it bars treating any fee as nonrefundable unless the lease clearly identifies it as such in writing. A cleaning fee buried in the lease without that label is treated as refundable, and the tenant can demand it back at move-out.
The safest practice is to list every up-front charge in the lease with its purpose and, where it applies, the words that make it nonrefundable. That clarity keeps you on the right side of the statute and makes the deposit return – thirty days with deductions, ten days without – clean, because the file already shows what each charge was for before you start the accounting.
Documentation and Recordkeeping in Montana
Because Montana regulates the screening process so lightly, your records are what prove it was lawful and even-handed. Keep the signed authorization for each consumer report, a dated copy of the written criteria you applied, the screening results, and every adverse action notice. A complete file showing identical treatment across applicants is the strongest answer to a Human Rights complaint.
On the deposit, keep the lease language designating any nonrefundable fee, the written itemized statement, dated move-in and move-out records, and repair invoices, and note whether deductions were taken so you apply the right ten-day or thirty-day deadline.
Set one retention policy and apply it to every file, approved or denied. A consistent multi-year record of authorizations, criteria, screening results, adverse action notices, fee designations, and deposit accountings gives you the evidence to answer a discrimination inquiry or a deposit dispute. Keeping the same records for everyone is itself proof of the even-handed treatment Montana and federal law require.
Do
- ✓Publish your written screening criteria before you advertise, and apply them to every applicant.
- ✓Get written authorization before pulling any report, and keep the signed consent on file.
- ✓Send an FCRA adverse action notice on every denial that rests on a consumer report.
- ✓Assess any criminal record case by case, weighing the offense, how recent it is, and safety.
- ✓Handle the security deposit and its return exactly as the state statute requires, and document it.
Avoid
- ✕Charge uneven application fees, or collect a fee with no genuine screening behind it.
- ✕Treat a permissive state as a lawless one – the FCRA and federal fair housing law always apply.
- ✕Apply a blanket ban on any criminal record, which risks a disparate-impact violation.
- ✕Improvise your standards applicant by applicant instead of following one written rubric.
- ✕Skip the deposit paperwork the statute requires, from itemization to any required notices.
Montana Tenant Screening Laws: FAQ
Can a Montana landlord run a background check on an applicant?
Yes. With written authorization you may obtain a consumer report covering credit, rental history, income, and criminal convictions. The federal Fair Credit Reporting Act requires a permissible purpose and consent before any screening report is pulled.
Is there a limit on application fees in Montana?
No. Montana does not cap tenant application or screening fees. Keep the fee reasonable, tie it to the actual cost of screening, identify any nonrefundable charge in writing, and charge it consistently.
What is the maximum security deposit in Montana?
There is no statutory cap. Montana does not limit the deposit amount, leaving it to the lease.
When must a Montana landlord return the deposit?
Within thirty days with a written itemized list of deductions, or within ten days when no deductions are taken.
Does Montana allow nonrefundable fees?
Only if they are clearly identified as nonrefundable in the written agreement. An unlabeled fee is treated as refundable.
Is source of income a protected class in Montana?
No. The Montana Human Rights Act does not list source of income, so state law does not require a landlord to accept a housing voucher. Treat every applicant by the same standard regardless.
Can a Montana landlord deny an applicant for a criminal record?
A conviction can be a lawful reason to decline, but blanket bans are risky. HUD’s 2016 guidance warns that a flat no-record policy can create a disparate-impact violation, so use an individualized assessment tied to the offense, how recent it is, and safety.
Does a Montana landlord have to send an adverse action notice?
Yes. If a denial, a higher deposit, or a co-signer requirement rests in any part on a consumer report, the FCRA requires an adverse action notice naming the reporting agency and explaining the right to a free report and to dispute it.
How long should a Montana landlord keep tenant screening records?
Keep applications, signed authorizations, screening results, adverse action notices, and deposit accountings for every applicant – approved or denied – for several years. In Montana, a consistent retention policy is the evidence that you treated every applicant by the same standard if a fair housing or deposit dispute later arises.
When must a Montana landlord send the adverse action notice?
Send it promptly whenever a consumer report contributes to an adverse decision – a denial, a higher deposit, or a co-signer requirement. The FCRA notice must name the reporting agency, state that it did not make the decision, and tell the Montana applicant how to get a free copy of the report and dispute any error.
Related Montana and Screening Guides
- Tenant screening laws by state – compare Montana to the rest of the country.
- Montana security deposit laws – deductions, itemization, and the return deadline.
- Montana eviction notice laws – notice periods and the eviction timeline.
- Montana rent increase laws – notice rules for raising the rent.
- Montana late fee laws – what you can charge for late rent.
- How a tenant background check works – what a report includes.
- Montana habitability laws – your maintenance obligations as a landlord.
Screen Montana Applicants the Compliant Way
Order FCRA-ready credit, criminal, and eviction reports and keep your Montana process consistent from application to decision.
Published by Tenant Screening Background Check · Editorial Team
Established 2004. Our editorial team has spent two decades helping landlords and property managers run lawful, FCRA-compliant tenant screening across all 50 states. We translate state landlord-tenant codes and federal screening rules into processes you can actually follow.
Legal Disclaimer
This article is for general informational purposes only and is not legal advice. Montana and federal laws change, and how they apply depends on your specific facts. Before acting on any screening, fee, deposit, or fair housing question, consult a licensed attorney in Montana. Reading this page does not create an attorney-client relationship.
