Overview
Montana's Residential Landlord and Tenant Act (Mont. Code § 70-24-101 et seq.) provides a detailed framework for security deposit practices. The state generally limits deposits to two months' rent and requires landlords to return them within 30 days, or 10 days if no deductions are made.
This guide covers everything landlords and tenants need to know about security deposits in Montana.
Deposit Limits
Montana law sets the following security deposit limits:
- General limit: 2 months' rent (recent legislative changes have standardized this)
- Historically, Montana limited deposits to 1 month's rent if the monthly rent was $600 or less, with no limit for higher rents
- Nonrefundable fees: Landlords may charge nonrefundable fees (such as cleaning fees) only if they are clearly identified as nonrefundable in writing
Deposit Holding Requirements
Montana landlords must hold security deposits in a trust account or in their own checking or savings account. The funds must be available for return to the tenant upon the termination of the tenancy.
Allowable Deductions
Landlords may only deduct from the security deposit for the following reasons:
- Unpaid rent: Any rent owed at the time of move-out
- Damage beyond normal wear and tear: Repairs for tenant-caused damage exceeding ordinary use
- Cleaning: Costs to return the unit to the condition at move-in, minus normal wear
- Breach of lease: Costs arising from the tenant's violation of lease terms
What Constitutes Normal Wear and Tear?
Normal wear and tear includes:
- Minor scuffs on walls
- Small nail holes from hanging pictures
- Worn carpet from regular use
- Faded paint due to sunlight
Damage beyond normal wear and tear includes:
- Large holes in walls
- Stained or burned carpet
- Broken windows or fixtures
- Pet damage to flooring or doors
Return Timeline
Montana has a two-tiered return timeline:
- 10 days: If the landlord does not intend to make any deductions from the deposit
- 30 days: If the landlord intends to make deductions, the landlord must provide an itemized list of deductions and the remaining deposit balance within 30 days
The return must include:
- The remaining deposit amount (if any deductions were made)
- An itemized written statement listing each deduction and the amount
Move-In Condition Statement
Montana requires landlords and tenants to complete a written record of the condition of the premises at the time of move-in. This document serves as the baseline for determining damages at the end of the tenancy and is critical for resolving deposit disputes.
Pre-Move-Out Inspection
Montana does not have a specific statutory requirement for pre-move-out inspections. However, the state's move-in condition statement requirement provides a strong framework for assessing the property's condition. Tenants are encouraged to:
- Ensure the move-in condition statement is completed and signed at the beginning of the tenancy
- Take photos or video of the unit at both move-in and move-out
- Request a walk-through with the landlord before surrendering the keys
- Compare the move-out condition to the documented move-in condition
Dispute Resolution
If a tenant believes their deposit was wrongfully withheld, they can:
- Send a demand letter to the landlord requesting the return of the deposit
- File a claim in Justice Court (Montana's small claims court, up to $7,000)
- File a complaint with the Montana Attorney General's Office of Consumer Protection
If the landlord fails to return the deposit or provide the itemized statement within the required timeframe, the tenant may be entitled to recover the full deposit amount plus damages. Courts may also award reasonable attorney's fees.