Overview
Leases are the cornerstone of a successful landlord-tenant relationship, providing a legal framework for both parties to enter a harmonious agreement.
In Montana, residential lease documents—including their structure, nature, and contents—are regulated by Montana landlord tenant laws. For this reason, it’s imperative to understand the intricacies of the law before constructing a lease.
This guide will walk you through the crucial components of a lease agreement Montana considers compliant, ensuring you’re well-equipped to make informed decisions. And to make your journey easier, we’re offering a free Montana lease template for download!
A Montana lease is a legally binding document that outlines the terms and conditions governing the rental of a residential property within the state. This lease must adhere to Montana’s landlord-tenant laws, providing a clear framework for both landlords and tenants to follow and fostering a secure and transparent rental environment.
The following components should be included in every Montana lease agreement. Note that these components primarily apply to residential leases; a Montana commercial lease agreement will necessarily have different requirements.
Lease Term
This section specifies the lease’s start and end dates, establishing the duration of the rental agreement.
Rent
Here, you’ll find details regarding the rent rate, due date, and the status of rent control. In Montana, there are no statewide rent control laws. This means landlords can choose their own rental rates based on the current market. However, keep in mind that individual municipalities or localities in Montana may have their own laws that regulate or restrict rent increases, so be sure you know which laws apply in your region.
Late Fees
The penalties for missing rent payments should be clearly stated in the lease, as should any exceptions. In Montana, there is no statutory limit on the amount of late fees, nor is there a mandatory grace period. This means, once again, landlords can choose the amount of their own fees and decide when/how to enforce them. However, your late fee policy should be clearly stated in your Montana lease agreements so that tenants know exactly what will happen if they are late on rent.
Security Deposit
This section of the lease includes details about the security deposit, including its amount, where it will be stored, and how/when it will be returned.
There is no maximum or limit for security deposits in Montana. However, Montana law does dictate that landlords in the state must return security deposits within ten days of the tenancy’s termination (unless the landlord is making deductions from the deposit—in which case, the limit is 30 days) (MCA § 70-25-202).
All Montana rental agreements should include a careful description of the landlord’s security deposit, including the amount of the deposit, how/when it will be returned, and the conditions under which funds may be withheld from it.
Required Disclosures
This section encompasses crucial required disclosures, which are information that must be disclosed to the tenant in the lease before they agree to rent the property. These required disclosures must be included in a lease agreement Montana considers compliant, or else provided to the tenant in a separate written notice.
In Montana, the required disclosures are:
- Lead-based paint – Landlords in all 50 states must disclose lead-based paint hazards in rental agreements for most properties built before 1978.
- Landlord/agent identification – Landlords in Montana are required to disclose the name and address of the person who manages the premises and receives notices.
- Carbon monoxide and smoke detectors – Montana landlords must verify to tenants that carbon monoxide detectors and smoke detectors are in good working order.
- Property condition – Landlords in Montana must include a written statement in every lease agreement describing the property’s condition.
- Mold – Landlords must include a general mold disclosure statement in every Montana rental agreement and disclose the presence of mold if any is known.
- Methamphetamine contamination – If a Montana landlord knows that a property has been previously contaminated by methamphetamine production, they must provide a written notice stating such to prospective tenants.
Landlord Right to Entry
In Montana, there are specific laws governing when a landlord can enter a rental property. Landlords in Montana must provide at least 24 hours’ notice before entering an occupied unit for a non-emergency reason (MCA § 70-24-312(3)(a)). Additionally, landlords may only enter at reasonable times (usually interpreted as daylight or business hours). Be sure to include the landlord’s right of entry in every Montana rental lease agreement.
Repairs & Maintenance
The lease outlines how and when tenants should submit maintenance requests and clarifies the process for addressing necessary repairs. Every Montana lease agreement should specify which maintenance responsibilities are the landlord’s and which are the tenant’s.
Lease Termination/Renewal Procedures
This section details the procedures for early lease termination and breaking the lease, including eviction processes. Specifically, the lease should clearly state how many days’ notice the tenant needs to provide the landlord to announce their intent to either renew or terminate the lease.
A Montana rental lease agreement should also clearly describe what happens if the tenant breaks the lease. Before filing for eviction in Montana, landlords must send eviction notices of specified lengths: A three-day notice to pay or quit for nonpayment, a three-day notice to cure or quit for unauthorized pets/residents or verbal abuse, a 14-day notice to cure or quit for all other violations, or a three-day unconditional notice to quit for severe property damage. These notice periods should be specified to the tenant so that both parties are clear on what will happen if the tenant fails to uphold the lease agreement.
Joint and Severability Clause
This clause is for leases with multiple roommates and explains the legal consequences if one party fails to fulfill their obligations. It ensures that the entire lease isn’t invalidated due to one roommate’s breach.
Signatures
Both the landlord and tenant will sign the lease either on paper or electronically, ensuring a secure and convenient process.
Montana Lease Agreement Download
To make your leasing journey simpler, we offer a downloadable Montana standard residential lease. This template is tailored to meet the specific requirements of the Montana code, making it a valuable tool for landlords and tenants.
Conclusion
Understanding the nuances of a Montana residential lease agreement is vital for a smooth and legal tenancy. We hope this guide has provided you with a clear understanding of the components of a Montana lease. To get started on the right foot, download our free Montana lease template and ensure a transparent, lawful, and satisfying rental experience.
