Quick Facts | Answer |
Acceptable Deductions | Unpaid rent, utilities and late fees
Costs of damage Cleaning costs Charges outlined in lease |
Return Deadline | 10 or 30 days |
Itemized Deductions | Required |
Penalty for Late Return | 2x Amount Due + Court Costs + Attorneys’ Fees |
For laws on security deposit collections and holdings in Montana, click here.
Some cities and counties may have regulations which are different from those presented here. Always check local laws.
Security Deposit Deductions in Montana
In Montana, the following can be deducted from security deposits:
- Unpaid rent, utilities, and late fees
- Costs of damage excluding normal wear and tear
- Cleaning costs including labor
- Other charges as outlined in the lease
Most states, such as Montana, do not have a legal limit on how much a landlord can charge for damages except that the charges must be reasonable.
If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant.
What is Considered Normal Wear and Tear in Montana?
“Normal wear and tear” is damage and deterioration to a property that happens over time using an ordinary and reasonable level of care. Normal wear and tear includes things like:
- Gently worn carpets
- Lightly scratched glass
- Faded paint and flooring
- Lightly dirtied grout
- Loose door handles
- Stained bath fixtures
Montana law defines “damage” as:
Any and all tangible loss, injury, or deterioration of a leasehold premises caused by the willful or accidental acts of the tenant occupying the leasehold premises or by the tenant’s family, licensees, or invitees… [or] from the tenant’s omissions or failure to perform any duty imposed…
Examples include:
- Heavily stained, burned, or torn carpets
- Broken tiles or windows
- Holes in the wall
- Missing fixtures
Can the Landlord Charge for Replacing the Carpet in Montana?
Landlords can charge for replacing the carpet if it is damaged beyond normal wear and tear.
A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.
Can the Landlord Charge for Nail Holes in Montana?
Montana landlords can charge a tenant for nail holes if they damage the walls in a way that doesn’t demonstrate an ordinary and reasonable level of care.
Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.
However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage, and thus chargeable to the tenant.
Can the Landlord Charge a Cleaning Fee in Montana?
Montana law allows landlords to charge for actual cleaning costs, including labor and materials, limited to bringing the unit back to its original condition at the start of the lease.
However, the landlord must notify the tenant in writing and give them 24 hours to clean the rental unit before deductions can be made.
If the notice is delivered by certified mail, it is considered received 3 days after it is mailed. If a tenant vacates the rental unit without giving proper notice, the landlord is not required to send written notice to the tenant before making deductions for cleaning.
Can the Landlord Charge for Painting in Montana?
Montana landlords can charge for painting, except for normal wear and tear. For example, a landlord might be able to charge for:
- Damage to the paint beyond normal wear and tear
- Tenant repainting without the landlord’s consent
- Tenant repainting with consent, but not doing the work to a professional standard
Normal paint wear includes:
- Minor scrapes from daily use
- Fading due to sunlight
- Minor cracks in the original paint.
Landlords can charge for repainting if the damage is not the result of ordinary care. This includes stains, large or deep scratches, and water damage.
Security Deposit Returns in Montana
Landlords must conduct a final inspection upon request and must return a security deposit no later than 10 days after conditions have been met if there are no deductions. If the landlord intends to make deductions, they must return the security deposit within 30 days.
If the landlord wants to make deductions for cleaning, they must first give the tenant written notice and 24 hours to complete the cleaning themselves to avoid the deductions.
Both tenants and landlords have the right to a final inspection completed upon request within the last week of the lease term.
How Long Do Landlords Have to Return Security Deposits in Montana?
Montana landlords have 10 days to return a security deposit if there are no deductions. If deductions are to be made, the landlord must return the unused portion of the security deposit, if any, within 30 days. The period begins once one of the following has occurred, whichever is earlier:
- The lease terminates
- Tenant delivers possession of the property to the landlord
If the landlord has a pending lawsuit against the tenant for actual damages, the regular security deposit return timeframes do not apply.
Do Landlords Owe Interest on Security Deposits in Montana?
Unlike in some states, such as New Jersey, landlords in Montana do not owe interest on security deposits.
How Do Landlords Give Notice in Montana?
Written notice must be mailed to the tenant’s forwarding address and must include the amount of the security deposit due, if any, to the tenant, plus an itemized statement of deductions, if any.
If a tenant abandons the rental unit without giving notice, the landlord can simply leave a copy of the notice in the rental unit and notify the tenant by email, phone, or text.
Can a Security Deposit Be Used for Last Month’s Rent in Montana?
Montana law does not forbid the security deposit from being used for any outstanding rent.
Landlords can include a provision in the lease agreement that the security deposit cannot be used for the last month’s rent until the tenant vacates the rental unit.
Security Deposit Disputes in Montana
If landlords do not return the security deposit within the required time period, tenants can sue for the amount due plus damages equal to the amount wrongfully withheld plus court costs and attorneys’ fees.
However, if the landlord fails to provide an itemized statement when deductions are made, the tenant can recover the full security deposit.
Tenants can also take legal action against a landlord for unreasonable deductions.
How Can Tenants File a Dispute for a Security Deposit in Montana?
If a landlord fails to return the security deposit, the tenant can file a dispute in Small Claims Court if the amount of damages is less than $7,000. If the amount is greater, the tenant can file a regular civil case in Justice Court.
A small claims case must be filed within 5 or 8 years depending on whether the lease agreement was oral or written. An attorney is not required or allowed unless all parties are represented by an attorney. Cases are filed in the Small Claims Court where the defendant lives or can be served. The filing fee is $30.
Sources
- 1 Mont. Code § 70-25-201(1)
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A landlord renting property covered by this chapter may deduct from the security deposit a sum equal to the damage alleged to have been caused by the tenant, together with a sum equal to the unpaid rent, late charges, utilities, penalties due under lease provisions, and other money owing to the landlord at the time of deduction, including rent owed under 70-24-441(3), and a sum for actual cleaning expenses, including a reasonable charge for the landlord’s labor.
Source Link
- 2 Mont. Code § 70-25-101(1) & (2)
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(1) “Cleaning expenses” means the actual and necessary cost of cleaning done by an owner or the owner’s selected representative for cleaning needs not attributable to normal wear brought about by the tenant’s failure to bring the premises to the condition it was at the time of renting.
(2) “Damage” means any and all tangible loss, injury, or deterioration of a leasehold premises caused by the willful or accidental acts of the tenant occupying the leasehold premises or by the tenant’s family, licensees, or invitees, as well as any and all tangible loss, injury, or deterioration resulting from the tenant’s omissions or failure to perform any duty imposed upon the tenant by law with respect to the leasehold.
Source Link - 3 Mont. Code § 70-25-201(3)
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Cleaning charges may not be imposed for normal maintenance performed on a cyclical basis by the landlord as noted by the landlord at the time that the tenant occupies the space unless the landlord is forced to perform this maintenance because of negligence of the tenant. Additionally, cleaning charges may not be deducted until written notice has been given to the tenant. The notice must include the cleaning not accomplished by the tenant and the additional and type or types of cleaning that need to be done by the tenant to bring the premises back to its condition at the time of its renting. After the delivery of the notice, the tenant has 24 hours to complete the required cleaning, unless the rental agreement is already terminated pursuant to 70-24-427 or 70-33-427 and the landlord has a pending claim for actual damages filed in court. If notice is mailed by certified mail, service of the notice is considered to have been made 3 days after the date of the mailing. A tenant who fails to notify the landlord of the intent to vacate or who vacates the premises without notice relieves the landlord of the requirement of giving notice and allows the landlord to deduct the cleaning charges from the deposit, or the landlord may leave a copy of the notice in a conspicuous location in the rental unit and notify the tenant by e-mail, phone, or text, and notice is considered delivered.
Source Link - 4 Mont. Code § 70-25-201(2)
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At the request of either party, the premises may be inspected within 1 week prior to termination of the tenancy.
Source Link
- 5 Mont. Code § 70-25-202(1)
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Except as provided in subsection (2):
(a) Each landlord, within 30 days subsequent to the termination of a tenancy or within 30 days subsequent to a surrender and acceptance of the leasehold premises, whichever occurs first, shall provide the departing tenant with a written list of any rent due and any damage and cleaning charges, brought after the provisions of 70-25-201 have been followed, with regard to the leasehold premises that the landlord alleges are the responsibility of the tenant. Delivery of the list must be accompanied by payment of the difference, if any, between the security deposit and the permitted charges set forth in 70-25-201. Delivery must be accomplished by mailing the list and refund to the new address provided by the tenant or, if a new address is not provided, to the tenant’s last-known address.
(b) If after inspection there are no damages to the premises, no cleaning required, and no rent unpaid and if the tenant can demonstrate that no utilities are unpaid by the tenant, the landlord shall return the security deposit within 10 days by mailing it to the new address provided by the tenant or, if a new address is not provided, to the tenant’s last-known address.
(c) It is not a wrongful withholding of security deposit funds if the landlord mails the funds to the last-known address of a tenant who has departed and the tenant does not receive the funds because the tenant has not given the landlord the tenant’s new address, but the landlord remains liable to the tenant for the amount due the tenant.
Source Link - 6 Mont. Code § 70-25-202(2)
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This section does not apply if a rental agreement is terminated pursuant to 70-24-427 or 70-33-427 and the landlord has a pending claim for actual damages filed in court.
Source Link - 7 Mont. Code § 25-35-802
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The prevailing party in an action before the small claims court is entitled to the party’s costs.
Source Link
- 8 Mont. Code § 70-25-204
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(1) A person who wrongfully withholds a residential property security deposit or any portion of the deposit is liable in damages to the tenant in a civil action for an amount equal to the sum determined to have been wrongfully withheld or deducted. The attorney fees may be awarded the prevailing party at the discretion of the court. The burden of proof of damages caused by the tenant to the leasehold premises is on the landlord.
(2) An action may not be maintained by a tenant for any amount wrongfully withheld or deducted prior to:
(a) the tenant’s receipt from the landlord or the landlord’s agent of a written denial of the sum alleged to be wrongfully detained;
(b) the expiration of a 30-day period after the termination of a tenancy;
(c) the expiration of a 30-day period after surrender and acceptance of the leasehold premises; or
(d) the expiration of a 10-day period after the landlord has indicated there were no damages to the premises, no cleaning was required, no rent was unpaid, and no utilities were unpaid by the tenant.
Source Link - 9 Mont. Code § 70-25-203
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Any landlord who fails to provide the departing tenant with a written list of damage and cleaning charges as required by 70-25-202 shall forfeit all rights to withhold any portion of the security deposit for the damages or cleaning charges.
Source Link
- 10 Mont. Code § 25-35-502
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(1) The small claims court has jurisdiction over all actions for the recovery of money or specific personal property when the amount claimed does not exceed $7,000, exclusive of costs, and the defendant can be served within the county where the action is commenced.
(2) The small claims court has jurisdiction over an interpleader under 25-35-508 in which the amount claimed does not exceed $7,000.
Source Link