| Quick Facts | Answer |
| Maximum / Limit | No Limit |
| Receipt Requirement | None |
| Inventory Requirement | Yes |
| Interest Requirement | None |
To learn about laws on security deposit returns in Montana, click here.
Some cities and counties may have regulations which are more restrictive than those presented here. Always check local laws.
Maximum Security Deposit Allowed in Montana
There is no limit on how much a landlord can collect for a security deposit in Montana. While other states impose a maximum security deposit limit, such as one month’s rent, Montana does not.
Can Landlords Charge an Additional Pet Deposit in Montana?
In Montana, landlords can charge a pet deposit, except for service dogs and emotional support animals.
How Much Rent Can a Landlord Collect Upfront in Montana?
There is no limit on the amount of rent that can be collected upfront in Montana. Many states have a limit on the amount of rent that can be collected at once, but Montana does not.
Security Deposit Collections in Montana
When collecting a security deposit in Montana, landlords must provide tenants with a written statement of the condition of the rental unit at the start of the lease term.
Do Landlords Have To Provide a Receipt for the Security Deposit in Montana?
Although some states like Washington require a receipt, landlords are not required to provide a receipt for the security deposit in Montana.
What Obligations Do Landlords Have To Establish the Condition at Move-in in Montana?
To collect a security deposit, landlords in Montana must provide the tenant with a written statement of the condition of the rental unit at the start of the lease term.
The written statement must include:
- The landlord’s signature
- A clear and concise statement of the condition of the rental unit
- Whether or not this is the first time the rental unit has been leased
If requested by a tenant in writing, landlords must provide a copy of the written statement of the damages and cleaning charges, if any, incurred by the previous tenant.
The statement of the property’s condition must be provided to any tenant from whom the landlord collects any type of security deposit. Montana law defines a security deposit as any money given to secure any type or amount of rent, damage, or cleaning in a rental situation.
Security Deposit Holdings in Montana
Montana law does not require landlords to hold security deposits separate from other funds. Some other states mandate how and where security deposits are held, but Montana does not.
Are Tenants Entitled to Interest on Their Security Deposit in Montana?
Montana law does not require landlords to provide interest on held security deposits.
How Are Security Deposits Accounted for in Montana?
Security deposits are not considered taxable income when they are collected.
What Happens to a Security Deposit When the Property is Sold in Montana?
When a property is sold in Montana, the seller must transfer the security deposit to the new owner, who must handle it according to the same rules.
Sources
- 1 Mont. Code § 70-25-206
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(1) Any person engaged in the rental of property for residential purposes who requires a security deposit shall 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 intended to be let. At the written request of the tenant, a copy of the written list of damage and cleaning charges, if any, provided to the tenant of the immediately preceding leasehold agreement for the premises in question must be provided to the tenant.
(2) Each written statement of the present condition of a premises intended to be let shall contain at least the following:
(a) a clear and concise statement of the present condition of the premises known to the landlord or the landlord’s agent or which should have been known upon reasonable inspection;
(b) if the premises have never previously been let, a statement indicating the fact; and
(c) the signature of the landlord or the landlord’s agent.
(3) A person engaged in the rental of property for residential purposes who fails to furnish a tenant, in conjunction with the execution of the lease or creation of the tenancy, with a separate written statement of the present condition of the premises intended to be let and, upon the written request of the tenant, a written list of damage and cleaning charges provided to the tenant of the immediately preceding leasehold agreement is barred from recovering any sum for damage to or cleaning of the leasehold premises unless the person can establish by clear and convincing evidence that the damage occurred during the tenancy in question and was caused by the tenant occupying the leasehold premises or the tenant’s family, licensees, or invitees.
Source Link - 2 Mont. Code § 70-25-101
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“Security deposit” means value given, in money or its equivalent, to secure the payment of rent by the tenant under a leasehold agreement or to secure payment for damage to and cleaning of the leasehold premises. If a leasehold agreement or an agreement incident to a leasehold agreement requires the tenant or prospective tenant to provide or maintain in effect any deposit to the landlord for part or all of the term of the leasehold agreement, the deposit must be presumed to be a security deposit. A fee or charge for cleaning and damages, no matter how designated, is presumed to be a security deposit.
Source Link
