Montana Residential Lease Agreement

Introduction

A Montana lease agreement is a legally binding contract between a landlord and tenant that establishes the terms of a property rental. The agreement permits tenants to either reside or conduct business on the landlord's premises in return for monthly rent payments. Montana landlords and tenants are governed by the Montana Residential Landlord and Tenant Act, which provides comprehensive regulations for rental relationships, security deposits, lease termination procedures, and tenant rights.

Required Disclosures

Montana law requires landlords to provide specific disclosures to tenants before or at the start of a lease. These disclosures ensure tenants are fully informed about property conditions and potential health hazards.

Lead-Based Paint Disclosure

Federal law requires landlords of properties built before 1978 to provide tenants with a disclosure about lead-based paint hazards. This disclosure must include known information about lead-based paint and lead-based paint hazards in the rental unit, along with an EPA-approved pamphlet on lead poisoning prevention. ^[1]

Mold Disclosure

Landlords must disclose whether they have knowledge of any mold on the premises and provide tenants with information about the health risks associated with mold exposure. This disclosure helps tenants make informed decisions about their health and safety. ^[3]

Names and Addresses Disclosure

Before or at the start of a lease, tenants must be provided with the name and address of the property manager, the property owner, or any representative of the owner with authority to receive notices and demands. This ensures tenants know who to contact for important communications. ^[4]

Statement of Condition (move-In Checklist)

If the landlord receives a security deposit, they must provide each tenant with a written statement describing the condition of the rental property at the start of the tenancy. This move-in checklist protects both parties by documenting pre-existing conditions and helps prevent disputes when the tenant moves out. ^[5]

Security Deposits

Maximum Amount

Montana has no statutory limits on security deposits. Landlords can charge what they feel is reasonable for the property, though market competition and fairness considerations typically influence the amount.

Collecting Interest

Montana law does not require landlords to accumulate or pay interest on security deposits held during the tenancy.

Returning to Tenant

The timeline for returning a security deposit depends on whether deductions are made:

• No Deductions: **If no damages, cleaning, or unpaid rent exist and utilities are current, the landlord must return the full deposit within 10 days by mailing it to the tenant's new or last-known address.
• With Deductions: **If deductions were made to cover unpaid rent, cleaning fees, or damages, the balance must be refunded within 30 days after the lease terminates or the tenant vacates. ^[6]

Itemized Deduction List

Yes, if the deposit is used to cover unpaid rent, cleaning fees, or damages, the landlord must provide a written, itemized list of deductions within 30 days after the tenancy terminates or the tenant moves out. This list must be delivered by mail to the tenant's new or last-known address. ^[7]

Separate Bank Account

No, Montana law does not require landlords to hold security deposits in a separate bank account. However, licensed property managers must maintain a trust account for storing security deposits. ^[8]

Rent Payment Terms

Grace Period

Landlords are not obligated to offer a grace period before charging late fees. Unless stated differently in the lease agreement, rent is due at the start of the rental term as specified in the lease. ^[9]

Maximum Late Fee

Montana has no statutory limit on late fees. However, late fees should be reasonable and clearly stated in the lease agreement to be enforceable.

NSF (bad Check) Fee

Landlords can charge a maximum fee of $30 when a tenant's check is rejected due to insufficient funds (NSF). A written demand must be mailed to the address on the check or the tenant's last-known address, informing the tenant that they must pay both the check value and the service charge. ^[10] For licensees or lenders, only one NSF fee may be collected per check, even if it has been redeposited and returned multiple times. ^[11]

Withholding Rent for Repairs

If the landlord's actions result in health and safety issues that they don't fix within a reasonable time after being notified, tenants can repair the issues themselves and deduct up to one month's rent to cover the expenses. Only a qualified person can perform the repairs required in the event of an emergency. ^[12]

Landlord's Right to Enter

General Access

A landlord cannot legally enter the rental property without first providing 24 hours' notice to the tenant, unless it is impractical to do so. The landlord may only enter the residence at reasonable times. ^[13]

Emergency Access

In the case of an emergency, a landlord may access the premises at any point without the tenant's consent or prior notice. ^[14]

Breaking a Lease

Non-Payment of Rent

A 3-day notice to pay or quit can be issued to the tenant immediately after their rent is due and unpaid. This notice gives the tenant three days to either pay the overdue rent or vacate the property. ^[15]

Non-Compliance With Lease Terms

Landlords can give tenants a 14-day notice to quit, instructing them to either fix the non-compliance with lease terms or vacate within 14 days. This applies to violations of lease provisions other than non-payment of rent. ^[16]

Tenant Maintenance Failures

If the tenant neglects to maintain their rental unit and doesn't fix the problem within 14 days after being notified (or sooner in an emergency), the landlord can carry out the repairs and bill the tenant for the costs. ^[17]

Illegal Lockouts

Unless the landlord is granted a writ of possession (eviction order) from the court, they cannot exclude or remove the tenant from the rental property. Self-help evictions are illegal in Montana. ^[18]

Leaving Before the End Date

When tenants break their lease by vacating early, they're generally obligated to pay rent for the rest of the lease term. However, landlords have a duty to mitigate damages by making reasonable efforts to re-rent the property at a fair rental rate. If a new tenant is found before the lease expires, the old tenant will no longer be responsible for paying rent from the date the new tenancy begins. ^[19]

Lease Termination

Month-To-Month Tenancy

To terminate a month-to-month tenancy, either the landlord or tenant must provide 30 days' written notice. This notice period applies regardless of which party is initiating the termination. ^[20]

Extended Absence

A rental agreement may require that the tenant inform the landlord of anticipated extended absences exceeding seven days. If the tenant fails to give notice of their extended absence as required by the lease, the landlord may recover damages resulting from that failure. ^[21]

Unclaimed Property

Landlords must inventory and store all personal property of the tenant in a place of safekeeping. The landlord must attempt written notice to the tenant and notify local law enforcement about the abandoned property. The landlord must send certified mail notice to the tenant's last-known address and any known lienholders at least 15 days before disposal. If a tenant indicates intent to retrieve property in writing, they have 7 days after delivery of their response to actually remove it, or the property is conclusively presumed to be abandoned. After sale or disposal, the landlord may deduct costs and remit remaining proceeds to the tenant. Unclaimed proceeds must be deposited with the county treasurer and will revert to the general fund of the county if not claimed within 3 years. ^[22]