Montana · State Screening Guide

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, property managers of four or more units must refund application fees to applicants who do not rent, and any cleaning or damage fee is presumed to be a deposit. 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.

Montana tenant screening rules at a glance

  • No statewide cap on application fees was found in the Montana Code Annotated, but a property manager of four or more dwelling units must refund the fee to an applicant who does not sign a rental agreement, keeping only the costs of services actually performed that were itemized in writing when the fee was collected (MCA 37-56-109).
  • Montana has no statewide rule requiring landlords to accept a reusable or portable tenant screening report.
  • Montana has no statewide fair-chance housing law limiting criminal-history lookbacks, so blanket bans are judged under the federal Fair Housing Act and 24 CFR 100.500.
  • Source of income is not a protected class under the Montana Human Rights Act, which bars housing discrimination based on sex, marital status, race, creed, religion, color, age, familial status, disability or national origin (MCA 49-2-305).
  • A fee or charge for cleaning and damages, however labeled, is presumed to be a security deposit, and deposits must be returned within thirty days, or ten days with no deductions (MCA 70-25-101, 70-25-202).
  • Federal baseline: the Fair Credit Reporting Act requires a permissible purpose before a screening report is pulled and an adverse action notice whenever a report contributes to a denial or worse terms (15 U.S.C. 1681b and 1681m).

Key Takeaways: Montana Tenant Screening Laws

  • No application-fee cap. Montana does not limit screening fees, but a property manager of four or more units must refund the fee, less itemized costs of services actually performed, to an applicant who does not sign a rental agreement (MCA 37-56-109).
  • 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.
  • Cleaning and damage fees count as deposits. Under MCA 70-25-101(4) a fee or charge for cleaning and damages, no matter how designated, is presumed to be a security deposit.
No capApplication fee limit
No capSecurity deposit limit
30 daysReturn (10 if no deductions)
DepositCleaning fees presumed

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. Under MCA 37-56-109, enacted in 2025, a property manager of four or more dwelling units must refund the fee to an applicant who does not become a party to a rental agreement, keeping only out-of-pocket costs for services actually performed that were itemized in writing when the fee was collected. Beyond that, the practical limits are reasonableness and consistency: charge the same amount to every applicant.

Montana does add a wrinkle on fees generally: under MCA 70-25-101(4) a fee or charge for cleaning and damages, no matter how designated, is presumed to be a security deposit, so labeling a cleaning fee nonrefundable does not make it one. Put the purpose of every charge in the lease and account for cleaning and damage charges with the deposit.

A cleaning fee is presumed to be a deposit

Under MCA 70-25-101(4), a fee or charge for cleaning and damages is presumed to be a security deposit no matter what the lease calls it. Spell out the purpose of every charge and account for cleaning and damage charges with the 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 liability in damages under MCA 70-25-204, where the landlord bears the burden of proving tenant damage and the court may award attorney fees to the prevailing party. 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. Do not cite HUD’s 2016 criminal-records guidance for that point: it was withdrawn effective September 25, 2025 by the Federal Register Notice of the Withdrawal of OGC Guidance Documents, Docket No. FR-6617-N-01, 91 FR 44867, and HUD has issued nothing to replace it. What carries the point instead is the Fair Housing Act itself, the Supreme Court’s decision in Texas Department of Housing and Community Affairs v. Inclusive Communities Project, 576 U.S. 519 (2015), and HUD’s discriminatory-effects rule at 24 CFR section 100.500, reinstated effective May 1, 2023 – so a flat ban can still violate the federal Fair Housing Act even without intent, because conviction records fall unevenly across racial groups. Read section 100.500 for what it is: a burden-shifting litigation standard under which the landlord carries the burden of proving the practice necessary to a substantial, legitimate, nondiscriminatory interest that no less discriminatory practice would serve. It imposes no individualized-assessment step, no pre-denial notice and no waiting period – that step came from the withdrawn guidance, which never carried the force of law in the first place. An individualized assessment tied to the offense, how recent it is, and safety is therefore the strongest defensible practice and the evidence that defends the denial, not a federal command. Section 100.500 is also contested: HUD has proposed to remove it and reopened the comment period until October 9, 2026 (Docket No. FR-6540-P-01, 91 FR 1475, as supplemented by Docket No. FR-6540-P-02, 91 FR 51416). A proposal is not a rule, and nothing has changed yet.

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 before ordering the report (screening companies generally also require the applicant’s written authorization), 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 refund it as MCA 37-56-109 requires if you are a property manager of four or more dwelling units. 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. Treating a cleaning fee as nonrefundable when Montana presumes it is a deposit, 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 cleaning fees is easy to trip over. Under MCA 70-25-101(4) a fee or charge for cleaning and damages, no matter how designated, is presumed to be a security deposit, so calling it nonrefundable in the lease does not keep it out of the deposit accounting at move-out.

The safest practice is to list every up-front charge in the lease with its purpose, treating any cleaning or damage charge as part of the deposit. 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 describing each up-front charge, 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 before any screening report is pulled, and screening companies require the applicant’s signed authorization.

Is there a limit on application fees in Montana?

No. Montana does not cap tenant application or screening fees, but under MCA 37-56-109 a property manager of four or more dwelling units must refund the fee to an applicant who does not become a party to a rental agreement, keeping only out-of-pocket costs for services actually performed that were itemized in writing when the fee was collected. 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?

Not for cleaning or damage. Under MCA 70-25-101(4) a fee or charge for cleaning and damages, no matter how designated, is presumed to be a security deposit and must be accounted for with the deposit.

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 a blanket ban is the risky part. Do not rely on HUD’s 2016 criminal-records guidance for that warning: it was withdrawn effective September 25, 2025 (Docket No. FR-6617-N-01, 91 FR 44867) and HUD has issued nothing to replace it. The exposure now runs through the Fair Housing Act and HUD’s discriminatory-effects rule at 24 CFR section 100.500, reinstated effective May 1, 2023, under which a landlord defending a flat no-record policy carries the burden of proving it necessary to a substantial, legitimate, nondiscriminatory interest that no less discriminatory practice would serve. Section 100.500 is a burden-shifting litigation standard and imposes no individualized-assessment step, no pre-denial notice and no waiting period – that idea came from the withdrawn guidance, which never carried the force of law in the first place. An individualized assessment tied to the offense, how recent it is, and safety is therefore prudent risk management and the evidence that defends the decision, not compliance with a federal requirement. HUD has proposed to remove section 100.500 and reopened the comment period until October 9, 2026 (Docket No. FR-6540-P-01, 91 FR 1475, as supplemented by Docket No. FR-6540-P-02, 91 FR 51416); a proposal is not a rule and the regulation is in force today.

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.

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About the Author

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.

Updated 2026

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.