Montana Standard Residential Lease Agreement

Introduction

A Montana standard residential lease agreement is a fixed-term rental contract between a landlord and one or more residential tenants. The lease contains terms that govern the relationship between the parties, defining their rights and obligations. It outlines details like the amount of rent to be paid by the tenant, the payment due date, security deposit requirements, and utility responsibilities. Montana residential leases are primarily governed by the Montana Residential Landlord and Tenant Act of 1977, found in Montana Code Annotated (MCA) Title 70, Chapter 24. ^[1]

Typically, standard residential leases in Montana are limited to a one-year period, though the parties may agree to different terms. The landlord and tenant may include any terms and conditions not prohibited by law, including rent amount, term of the agreement, and other provisions governing their relationship.

Legal Framework

Montana has a comprehensive landlord-tenant statutory framework. The primary statutes governing residential rental relationships include: MCA Title 70, Chapter 24 (Residential Landlord and Tenant Act of 1977), which establishes the rights and duties of both parties; MCA Title 70, Chapter 25 (Residential Tenants' Security Deposits), which governs security deposit collection, holding, and return; and MCA Title 70, Chapter 16 (Montana Mold Disclosure Act), which requires mold disclosures in rental transactions. ^[2]

Additionally, federal law under the Residential Lead-Based Paint Hazard Reduction Act (42 U.S.C. Section 4852d) requires disclosure of lead-based paint hazards for properties built before 1978. Montana also has specific requirements for methamphetamine contamination disclosure under MCA Section 75-10-1305. ^[3]

Required Disclosures

Montana law requires landlords to make five specific disclosures to tenants before or at the commencement of the tenancy:

Lead-Based Paint Disclosure (federal Requirement)

For all residential properties built before 1978, federal law under the Residential Lead-Based Paint Hazard Reduction Act (Title X, Section 1018) requires landlords to disclose known information about lead-based paint and lead-based paint hazards. Landlords must provide tenants with a federally-approved pamphlet titled "Protect Your Family From Lead in Your Home," disclose any known lead-based paint or hazards, and include a Lead Warning Statement in the lease agreement. Tenants must be given a 10-day opportunity to conduct a lead inspection before becoming obligated under the lease. ^[4]

Mold Disclosure

Under the Montana Mold Disclosure Act (MCA Section 70-16-703), landlords must provide a mold disclosure statement to tenants prior to or contemporaneously with the execution of a rental agreement. The disclosure must include specific language regarding the nature of mold, its potential health effects, and the buyer's or tenant's obligation to determine whether a mold problem exists. If the landlord knows that the property contains mold, they must disclose this fact along with any testing results and evidence of subsequent treatment. Landlords who comply with these disclosure requirements are protected from liability for mold-related claims. ^[5]

Methamphetamine and Fentanyl Contamination Disclosure

Under MCA Section 75-10-1305, landlords must notify prospective tenants in writing if the property is known to have been used as a clandestine methamphetamine or fentanyl drug lab, or if the property has been contaminated from smoke from the use of methamphetamine. This disclosure is required if the property has not been remediated to the standards established by the Montana Department of Environmental Quality by a certified contractor. Landlords who properly disclose and remediate are protected from liability. ^[6]

Landlord/manager/agent Identification

Under MCA Section 70-24-301, landlords must disclose to tenants in writing, at or before the commencement of the tenancy, the name and address of: (a) the person authorized to manage the premises, and (b) the owner of the premises or a person authorized to act for the owner for the purpose of service of process and receiving notices and demands. This information must be kept current and in writing. A person who fails to comply becomes an agent of the landlord for service of process and for performing the landlord's obligations. ^[7]

Statement of Condition (move-In Checklist)

Under MCA Section 70-25-206, any landlord who requires a security deposit must furnish to each tenant, in conjunction with execution of a lease or creation of a tenancy, a separate written statement as to the present condition of the premises. This statement must include: (a) a clear and concise statement of the present condition of the premises known to the landlord; (b) if the premises have never previously been let, a statement indicating that fact; and (c) the signature of the landlord or agent. A landlord who fails to provide this statement is barred from recovering any sum for damage or cleaning unless they can establish by clear and convincing evidence that the damage occurred during the tenancy and was caused by the tenant. ^[8]

Security Deposit Laws

Maximum Amount

Montana law does not impose a maximum limit on security deposit amounts for residential rentals. Landlords may charge any amount they deem reasonable. However, excessively high deposits may deter prospective tenants and are generally not market-competitive. ^[9]

Return of Security Deposit

Under MCA Section 70-25-202, the security deposit return timeline depends on whether deductions are made: ^[10]

10 days: If after inspection there are no damages, no cleaning required, no unpaid rent, and the tenant can demonstrate no unpaid utilities, the landlord must return the full security deposit within 10 days.

30 days: If the landlord intends to make deductions for rent due, damages, or cleaning charges, the landlord must provide the departing tenant with a written itemized list of deductions and any remaining balance within 30 days of tenancy termination or surrender.

The landlord must mail the list and refund to the new address provided by the tenant, or if no new address is provided, to the tenant's last-known address.

Rent Payment Laws

Grace Period

Montana law does not provide a statutory grace period for rent payments. Under MCA Section 70-24-201, rent is payable without demand or notice at the time and place agreed upon by the parties. Unless the rental agreement provides otherwise, periodic rent is payable at the beginning of a term of a month or less and otherwise in equal monthly installments at the beginning of each month. Rent is considered late if not paid by the due date specified in the lease. ^[11]

Late Fees

Montana law does not impose a statutory maximum on late fees that landlords may charge for overdue rent. Late fees should be reasonable and specified in the lease agreement.

NSF (bounced Check) Fees

When a tenant's check is returned due to insufficient funds, landlords may charge a reasonable fee. Montana law generally allows up to $30 for NSF checks in certain contexts, though the specific amount should be stated in the lease agreement.

Landlord's Obligations

Under MCA Section 70-24-303, Montana landlords have extensive obligations to maintain residential premises in a fit and habitable condition: ^[12]

Building Code Compliance: Comply with applicable building and housing codes materially affecting health and safety.

Repairs and Habitability: Make repairs and do whatever is necessary to put and keep the premises in a fit and habitable condition.

Common Areas: Keep all common areas of the premises in a clean and safe condition.

Systems Maintenance: Maintain in good and safe working order all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances, including elevators, supplied or required to be supplied by the landlord.

Waste Disposal: Provide outlets for waste disposal and arrange for waste removal.

Water Supply: Supply running water and hot water at all times.

Heating: Supply heating from October 1 to May 1 each year.

Safety Devices: Install and maintain smoke detectors and carbon monoxide detectors.

Tenant's Obligations

Under MCA Section 70-24-321, tenants have the following obligations: ^[13]

Code Compliance: Comply with all obligations imposed upon tenants by applicable building and housing codes affecting health and safety.

Cleanliness: Keep the part of the premises they occupy reasonably clean and safe as the condition permits.

Waste Disposal: Dispose of all ashes, garbage, rubbish, and other waste in a clean and safe manner.

Plumbing: Keep all plumbing fixtures in the dwelling unit or used by the tenant as clean as their condition permits.

Reasonable Use: Use all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances in a reasonable manner.

No Damage: Not destroy, deface, damage, impair, or remove any part of the premises or permit any person to do so.

Prohibited Activities: Tenants may not engage or knowingly allow criminal production of dangerous drugs, operation of unlawful clandestine laboratories, gang-related activities, or unlawful possession of firearms or explosives on the premises.

Landlord's Right of Entry

Under Montana law, landlords must provide at least 24 hours' notice before entering a tenant's dwelling unit, except in cases of emergency. Entry must be at reasonable times. Notice may be provided by conspicuously posting the landlord's intent to enter on the main entry door of the dwelling unit. ^[14]

Exceptions to the 24-hour notice requirement include:

Emergency situations

When the tenant has abandoned or surrendered the property

Court order authorizing entry

When the tenant is absent for more than 7 days

Eviction Notice Requirements

Montana law establishes specific notice periods for different types of lease violations under MCA Section 70-24-422: ^[15]

Lease Termination Requirements

Under MCA Section 70-24-441, the notice required to terminate a tenancy depends on the type of rental arrangement: ^[16]

Month-to-Month Tenancy: Either party may terminate by providing at least 30 days' written notice prior to the designated termination date.

Week-to-Week Tenancy: Either party may terminate by providing at least 7 days' written notice.

Fixed-Term Lease: The lease terminates automatically at the end of the specified term. If either party terminates without cause prior to the expiration date, the aggrieved party may recover monetary damages up to one month's rent.

Tenant's Remedies for Landlord Non-Compliance

Under MCA Section 70-24-406, if there is a noncompliance with the landlord's duty to maintain premises affecting health and safety, tenants have the following remedies: ^[17]

Lease Termination: Deliver a written notice specifying the breach and that the rental agreement will terminate in not less than 30 days if the breach is not remedied within 14 days. In emergencies, the tenant may terminate if the landlord fails to remedy within 3 working days.

Repair and Deduct: Make repairs costing up to one month's rent and deduct the cost from rent, if the tenant has given notice and the landlord has not made repairs within a reasonable time. Emergency repairs may be made by a qualified person.

Damages and Injunction: Recover actual damages and obtain injunctive relief for any noncompliance by the landlord with the rental agreement or habitability requirements.