Renting Out Your Property in Montana: A Landlord's Guide
Renting out property in Montana requires understanding specific state laws that govern landlord-tenant relationships, security deposits, and eviction procedures. Montana landlords must comply with the Montana Residential Landlord and Tenant Act, which establishes rights and responsibilities for both parties while providing protections that differ from other states.
Montana law limits security deposits to one month's rent for unfurnished properties and requires landlords to return deposits within 30 days of lease termination. Failure to comply with Montana's specific landlord-tenant regulations can result in legal liability and financial penalties.
Key Considerations
Scenarios
Decisions
Scenarios
Decisions
Scenarios
Decisions
Relevant Documents
Landlord's Rules and Regulations
A supplementary document to the lease that outlines specific rules for the property, such as quiet hours, guest policies, and maintenance responsibilities.
Move-In/Move-Out Inspection Checklist
A document that records the condition of the rental property before the tenant moves in and after they move out, which helps determine if any damage occurred during the tenancy.
Notice of Entry Form
A document used by landlords to notify tenants of their intent to enter the rental property, typically required by state law with specific advance notice periods.
Rental Application Form
A form used to collect information about potential tenants, including employment history, income, references, and authorization for background and credit checks.
Residential Lease Agreement
A legally binding contract between a landlord and tenant that outlines the terms and conditions of the rental arrangement, including rent amount, security deposit, lease duration, and other important provisions.
Security Deposit Receipt
A document acknowledging the landlord's receipt of the security deposit, including the amount, date received, and where the deposit will be held.
Relevant Laws
Montana Residential Landlord and Tenant Act
This is the primary law governing landlord-tenant relationships in Montana. It outlines the rights and responsibilities of both landlords and tenants, including requirements for security deposits, lease agreements, maintenance responsibilities, and eviction procedures.
Montana Security Deposit Law
Montana law limits security deposits to the equivalent of one month's rent for leases under one year. Landlords must return deposits within 30 days after the tenant vacates the property, with an itemized list of any deductions. Failure to comply can result in the landlord forfeiting the right to withhold any portion of the deposit.
Montana Fair Housing Act
This law prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, or disability. Landlords must ensure their rental practices comply with these anti-discrimination provisions when advertising, screening tenants, and throughout the tenancy.
Montana Landlord's Disclosure Requirements
Montana law requires landlords to disclose certain information to tenants, including the identity of anyone authorized to manage the property, known hazards like lead-based paint (for properties built before 1978), and the presence of mold or other environmental hazards.
Montana Landlord Entry Laws
Landlords must provide at least 24 hours' notice before entering a rental property except in emergencies. This law balances the landlord's right to access their property with the tenant's right to privacy and quiet enjoyment.
Montana Eviction Laws
Montana has specific procedures landlords must follow for evictions. For non-payment of rent, landlords must provide a 3-day notice before filing for eviction. For lease violations, a 14-day notice is required. Self-help evictions (changing locks, removing belongings, etc.) are illegal.
Montana Rental Property Habitability Requirements
Landlords must maintain rental properties in a habitable condition, including functioning plumbing, heating, electrical systems, and weatherproofing. Tenants have remedies if landlords fail to make necessary repairs, including the right to withhold rent in certain circumstances.
Regional Variances
Western Montana
Missoula has additional tenant protections including a requirement that landlords provide 24-hour written notice before entering a rental property (compared to the state minimum of 'reasonable notice'). The city also has specific regulations regarding security deposit handling, requiring deposits to be returned within 10 days of lease termination rather than the state standard of 30 days.
Bozeman has implemented stricter rental inspection requirements due to its growing housing market. Landlords must register rental properties with the city and may be subject to periodic inspections. Additionally, Bozeman has enacted some rent stabilization measures for affordable housing units that limit annual rent increases.
Eastern Montana
Billings follows state landlord-tenant laws closely but has additional local ordinances regarding rental property maintenance standards. The city has specific requirements for smoke detectors, carbon monoxide detectors, and heating systems that may exceed state minimums.
University Towns
Areas near Montana State University have specific regulations addressing student housing. These include stricter occupancy limits (no more than 4 unrelated individuals per dwelling) and noise ordinances with enhanced enforcement during academic terms.
Areas surrounding the University of Montana have special zoning regulations that affect rental properties. Landlords renting in these areas may need to obtain additional permits and comply with occupancy restrictions designed to prevent overcrowding in student neighborhoods.
Tribal Lands
Rental properties on the Blackfeet Reservation are subject to tribal housing authority regulations in addition to or instead of state laws. Landlords may need to obtain permits from the tribal housing authority and follow specific leasing procedures.
The Confederated Salish and Kootenai Tribes have their own housing authority with distinct regulations for rental properties on reservation land. Non-tribal members seeking to rent property on tribal lands may face additional requirements and should consult with the tribal housing authority.
Suggested Compliance Checklist
Research Montana Landlord-Tenant Laws
1 days after startingFamiliarize yourself with Montana's Residential Landlord and Tenant Act (Title 70, Chapter 24 of Montana Code Annotated). This law outlines your rights and responsibilities as a landlord in Montana. Pay special attention to security deposit limits, notice requirements, and maintenance obligations.
Obtain Required Business Licenses
7 days after startingCheck with your local city or county government to determine if you need a business license to operate a rental property. Requirements vary by location within Montana. Some municipalities may require rental registration or inspection programs.
Prepare a Rental Application Form
14 days after startingCreate a comprehensive rental application to screen potential tenants. Include sections for personal information, rental history, employment details, income verification, and authorization for background and credit checks. Ensure your screening process complies with Fair Housing laws, which prohibit discrimination based on protected classes.
Create a Residential Lease Agreement
21 days after startingDraft a legally compliant Montana lease agreement that includes all required disclosures and terms. Montana law requires specific provisions regarding security deposits, maintenance responsibilities, and entry notices. The lease should clearly outline rent amount, payment methods, lease term, occupancy limits, pet policies, and grounds for termination.
Develop Landlord's Rules and Regulations
21 days after startingCreate a separate document outlining house rules that aren't included in the main lease. This may cover quiet hours, common area usage, garbage disposal procedures, parking regulations, and maintenance expectations. Ensure these rules are reasonable and don't contradict terms in the lease or violate Montana law.
Prepare a Move-In/Move-Out Inspection Checklist
21 days after startingCreate a detailed form to document the condition of the property before the tenant moves in and after they move out. This should include every room and feature of the property with space to note existing damage or wear. Montana law requires landlords to provide tenants the opportunity to complete this form at move-in.
Create a Lead-Based Paint Disclosure Form
21 days after startingFor properties built before 1978, federal law requires landlords to disclose known information about lead-based paint and provide an EPA-approved pamphlet to tenants. This form must be completed before the lease is signed, even if you have no knowledge of lead-based paint in the property.
Prepare a Security Deposit Receipt
21 days after startingMontana law requires landlords to provide a receipt for security deposits. Create a form that documents the amount received, the date, and explains how the deposit will be held. Montana limits security deposits to no more than one month's rent for unfurnished properties and no more than one and one-half month's rent for furnished properties.
Draft a Notice of Entry Form
21 days after startingCreate a form to notify tenants when you need to enter the property. Montana law requires at least 24 hours' notice before entering a tenant's unit except in emergencies. This form should include the date, time, and purpose of entry.
Set Up Property Insurance
30 days after startingObtain appropriate landlord insurance coverage for your rental property. Standard homeowner's insurance typically doesn't cover rental activities. Landlord policies generally cover property damage, liability protection, and lost rental income if the property becomes uninhabitable.
Establish a System for Rent Collection
30 days after startingDetermine how you'll collect rent (check, electronic payment, etc.) and when it's due. Montana doesn't specify when rent is considered late, so clearly define grace periods and late fees in your lease. Note that Montana doesn't limit late fees, but courts may not enforce excessive fees.
Create a Maintenance Plan
30 days after startingDevelop procedures for handling routine maintenance and emergency repairs. Montana law requires landlords to maintain premises in a fit and habitable condition, including maintaining electrical, plumbing, heating, and other facilities. Establish a system for tenants to report maintenance issues.
Research Tax Implications
45 days after startingConsult with a tax professional about reporting rental income and potential deductions. You'll need to report rental income on your federal and Montana state tax returns. Keep detailed records of all expenses related to your rental property for tax purposes.
Prepare for Fair Housing Compliance
45 days after startingEducate yourself on federal and Montana fair housing laws to avoid discrimination claims. Montana prohibits discrimination based on race, color, national origin, religion, sex, familial status, disability, age, and marital status. Ensure your advertising, tenant screening, and management practices comply with these laws.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Research Montana Landlord-Tenant Laws | Familiarize yourself with Montana's Residential Landlord and Tenant Act (Title 70, Chapter 24 of Montana Code Annotated). This law outlines your rights and responsibilities as a landlord in Montana. Pay special attention to security deposit limits, notice requirements, and maintenance obligations. | - | 1 |
| Obtain Required Business Licenses | Check with your local city or county government to determine if you need a business license to operate a rental property. Requirements vary by location within Montana. Some municipalities may require rental registration or inspection programs. | - | 7 |
| Prepare a Rental Application Form | Create a comprehensive rental application to screen potential tenants. Include sections for personal information, rental history, employment details, income verification, and authorization for background and credit checks. Ensure your screening process complies with Fair Housing laws, which prohibit discrimination based on protected classes. | Rental Application Form | 14 |
| Create a Residential Lease Agreement | Draft a legally compliant Montana lease agreement that includes all required disclosures and terms. Montana law requires specific provisions regarding security deposits, maintenance responsibilities, and entry notices. The lease should clearly outline rent amount, payment methods, lease term, occupancy limits, pet policies, and grounds for termination. | Residential Lease Agreement | 21 |
| Develop Landlord's Rules and Regulations | Create a separate document outlining house rules that aren't included in the main lease. This may cover quiet hours, common area usage, garbage disposal procedures, parking regulations, and maintenance expectations. Ensure these rules are reasonable and don't contradict terms in the lease or violate Montana law. | Landlord's Rules and Regulations | 21 |
| Prepare a Move-In/Move-Out Inspection Checklist | Create a detailed form to document the condition of the property before the tenant moves in and after they move out. This should include every room and feature of the property with space to note existing damage or wear. Montana law requires landlords to provide tenants the opportunity to complete this form at move-in. | Move-In/Move-Out Inspection Checklist | 21 |
| Create a Lead-Based Paint Disclosure Form | For properties built before 1978, federal law requires landlords to disclose known information about lead-based paint and provide an EPA-approved pamphlet to tenants. This form must be completed before the lease is signed, even if you have no knowledge of lead-based paint in the property. | Lead-Based Paint Disclosure Form | 21 |
| Prepare a Security Deposit Receipt | Montana law requires landlords to provide a receipt for security deposits. Create a form that documents the amount received, the date, and explains how the deposit will be held. Montana limits security deposits to no more than one month's rent for unfurnished properties and no more than one and one-half month's rent for furnished properties. | Security Deposit Receipt | 21 |
| Draft a Notice of Entry Form | Create a form to notify tenants when you need to enter the property. Montana law requires at least 24 hours' notice before entering a tenant's unit except in emergencies. This form should include the date, time, and purpose of entry. | Notice of Entry Form | 21 |
| Set Up Property Insurance | Obtain appropriate landlord insurance coverage for your rental property. Standard homeowner's insurance typically doesn't cover rental activities. Landlord policies generally cover property damage, liability protection, and lost rental income if the property becomes uninhabitable. | - | 30 |
| Establish a System for Rent Collection | Determine how you'll collect rent (check, electronic payment, etc.) and when it's due. Montana doesn't specify when rent is considered late, so clearly define grace periods and late fees in your lease. Note that Montana doesn't limit late fees, but courts may not enforce excessive fees. | - | 30 |
| Create a Maintenance Plan | Develop procedures for handling routine maintenance and emergency repairs. Montana law requires landlords to maintain premises in a fit and habitable condition, including maintaining electrical, plumbing, heating, and other facilities. Establish a system for tenants to report maintenance issues. | - | 30 |
| Research Tax Implications | Consult with a tax professional about reporting rental income and potential deductions. You'll need to report rental income on your federal and Montana state tax returns. Keep detailed records of all expenses related to your rental property for tax purposes. | - | 45 |
| Prepare for Fair Housing Compliance | Educate yourself on federal and Montana fair housing laws to avoid discrimination claims. Montana prohibits discrimination based on race, color, national origin, religion, sex, familial status, disability, age, and marital status. Ensure your advertising, tenant screening, and management practices comply with these laws. | - | 45 |
Frequently Asked Questions
In Montana, a valid lease agreement should include: names of all parties, property address, lease term, rent amount and due date, security deposit details, maintenance responsibilities, pet policies, and signatures of all parties. Montana law doesn't require a written lease for tenancies less than 12 months, but having one is strongly recommended to protect both parties' interests.
Montana law limits security deposits to no more than two months' rent for unfurnished properties. For furnished rentals, you may charge up to three months' rent. You must return the deposit within 30 days after the tenant vacates the property, along with an itemized list of any deductions. If you fail to comply with these requirements, you may be liable for up to twice the amount of the security deposit.
Montana law requires landlords to give at least 24 hours' notice before entering a rental property for non-emergency reasons such as repairs, inspections, or showing the property to prospective tenants. The notice should specify the purpose for entry and a reasonable time frame. Emergency situations that threaten health, safety, or property damage allow for immediate entry without notice.
To evict a tenant in Montana, you must follow specific legal procedures. First, serve a written notice (3-day notice for non-payment of rent, 14-day notice for lease violations). If the tenant doesn't comply, file an eviction lawsuit (unlawful detainer action) with the court. After winning the case, only a sheriff can physically remove tenants. Self-help evictions (changing locks, removing belongings, shutting off utilities) are illegal and can result in penalties.
Montana landlords must maintain rental properties in a habitable condition, including: functioning plumbing, electrical, and heating systems; weatherproof and waterproof structure; proper garbage receptacles; clean and safe common areas; and compliance with building and housing codes. If you fail to make necessary repairs after proper notice, tenants may have legal remedies including repair-and-deduct, rent withholding, or lease termination depending on the circumstances.
No. Montana's Human Rights Act prohibits discrimination based on race, color, religion, national origin, sex (including sexual orientation and gender identity), age, familial status, disability, or marital status. You cannot refuse to rent, charge different rates, or impose different terms based on these protected characteristics. Violations can result in civil penalties, damages, and legal fees.
Montana does not have a statewide rental property registration requirement. However, some local municipalities may have their own registration or licensing requirements. Check with your local city or county government to determine if there are any local registration, inspection, or licensing requirements for rental properties in your specific area.
Montana does not have statewide rent control laws, so landlords can generally increase rent by any amount. However, for month-to-month tenancies, you must provide at least 30 days' written notice before implementing a rent increase. For fixed-term leases, rent cannot be increased during the lease term unless the lease specifically allows for it. Always check local ordinances as some municipalities may have additional restrictions.
A thorough Montana rental application should include: applicant's personal information, rental history, employment information, income verification, references, consent for background and credit checks, and application fee disclosure. You may charge a reasonable application fee to cover screening costs. Be consistent in your screening criteria to avoid discrimination claims, and maintain records of all applications and your decision-making process.
Yes, Montana landlords must provide certain disclosures, including: lead-based paint disclosure for properties built before 1978 (federal requirement), known environmental hazards, shared utility arrangements, and the name and address of the property manager or owner. Additionally, if you collect a security deposit, you must inform tenants of the conditions under which deductions may be made and provide a move-in checklist documenting the property's condition.