Montana Security Deposit Collections & Holdings

Last Updated: April 3, 2023 by Ashley Porter

To learn about laws on security deposit returns in Montana, click here.

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. [1]

The written statement must include:

• The landlord’s signature
• A clear and concise statement of the condition of the rental unit
• Whether the rental unit has never 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. [2]

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.