Renting out a room in Montana often starts with a practical decision. Whether you want to split the bills to save money or offer a friend a hand in a tight rental market, a room rental can be a great way to go. But once someone moves into your house, the details quickly begin to matter much more.
A Montana lease agreement is a written agreement that answers those questions up front, turning a casual arrangement into a clear, legally enforceable plan. Below, we’ll break down everything you need to know about a room rental agreement in Montana.
Room Rental Laws
Montana landlord-tenant law oversees all aspects of a room rental agreement. These laws govern almost all aspects of your room rental agreement in Montana, including:
- Security deposits
- Rent and fees
- Access and privacy
- Maintenance and habitability
- Lease terms and termination
- Eviction and breaches
There are various types of room rental agreements Montana landlords use.
Different Types of Room Rental Agreements in Montana
The type of room rental agreement Montana landlords choose depends on their priorities for the tenancy.
Verbal agreement: An agreement made in conversation between you and your tenant. Verbal agreements are often difficult to prove and rarely hold up in court, so we discourage their use.
Fixed-term lease: A fixed-term lease agreement lasts for a specified period, usually 1 year. These arrangements are a great option if you want stability and reliability.
Month-to-month lease: A month-to-month room rental agreement, also called a tenancy at will, renews each month until someone gives notice to terminate. This type of arrangement is a good fit if you need flexibility in your lease terms.
Required Landlord Disclosure
Before signing a room rental agreement, Montana landlords must disclose certain information to their tenants, including:
Lead-based paint: For any home built before 1978, you must disclose any known information about lead-based paint and its hazards and provide the required EPA pamphlet.
Mold disclosure: You must provide a statement saying that you have no knowledge of mold in the unit, and your tenant must agree to the statement (Mont. Code § 70-16-702).
Move-in inspection checklist: You must give your tenant a checklist outlining the condition of the room, including any existing damages. Your tenant must also inspect the property and agree with the accuracy of your checklist (Mont. Code § 70-25-206).
Methamphetamine drug lab disclosure: If there has been any methamphetamine on the property, you must inform tenants until the home is professionally cleaned (Mont. Code § 75-10-1305).
Landlord name and address: You must include your name and contact information in your Montana room rental agreement (Mont. Code § 70-24-301).
Security Deposit Rules
When creating a room rental agreement, Montana landlords often require a security deposit. This refundable deposit helps cover potential costs arising from unpaid rent or excessive damage.
Maximum security deposit: Montana does not limit how much you can charge as a security deposit.
Pet deposits: Montana law does not establish a separate law for pet deposits. You may charge a deposit to cover pet damages as long as you outline the fee in the lease template.
Security deposit receipt: You are not required to issue a receipt for your tenants’ security deposit payments.
Deduction tracking: You must provide your tenant an itemized list of deductions and return the balance of their security deposit within 30 days of the lease ending (Mont. Code § 70-25-202).
Security deposit return: You must return your tenant’s security deposit, minus any deductions, within 30 days of lease termination (Mont. Code § 70-25-202).
Rent Payment Rules
A Montana room rental agreement is about more than just disclosures and a security deposit. Here’s what you need to know about collecting rent in The Treasure State.
Late rent fees: In Montana, there is no cap on what you can charge as a late fee; however, you must clearly outline the fee in your rental agreement to avoid misunderstandings.
Right to withhold rent: If you fail to make necessary repairs, Montana law allows tenants to make repairs themselves and withhold up to 1 month’s rent (Mont. Code § 70-24-406).
Grace period: You do not have to offer your tenant a grace period for late rent.
Pet rent: You may charge a separate pet rent in addition to the deposit; however, your lease agreement must clearly outline the fee.
Rent Payment Increase Rules
As a landlord, it is your right to increase the rent as needed, but there are certain rules you must follow.
Rent payment increase frequency: You cannot increase rent in the middle of a fixed lease term. You can increase rent on a month-to-month Montana room rental agreement by giving adequate notice. A change to a month-to-month lease can go into effect with 15 days’ written notice; however, another Montana law says that any substantial change to the rules of the agreement requires 30 days’ notice, which some argue includes rent (Mont. Code § 70-26-109, § 70-24-311).
Rent payment increase maximum: There are no statewide limits on how much you can increase rent, but you must give your tenant proper notice.
Rent control/stabilization: Rent control and stabilization do not exist at the state level in Montana.
Montana Room Rental Agreement Breaches
If your tenant violates any part of their lease, Montana law outlines how you should respond.
Failure to pay: If your tenant misses a rent payment, you may issue a 3-day Notice to Pay or Quit (Mont. Code § 70-24-422).
Lease violations: For other lease violations, you must issue your tenant a written notice of the violation and allow them time to correct the issue. The length of time varies based on the violation (Mont. Code § 70-24-422).
Self-help evictions: In Montana, self-help evictions are illegal. You should go through the proper legal channels when evicting a tenant.
Terminating a Montana Room Rental Agreement
It’s important to understand the rules for terminating a room rental agreement in Montana to help avoid disputes.
Fixed-term: Typically, either party must give 30 days’ written notice to terminate a fixed-term lease agreement, unless the landlord agrees to other terms or there is a qualifying event. If the tenant does not give notice and remains in the room after the lease end date, you can assume they will renew under the same terms and for the same length of time (Mont. Code § 70-24-441).
Month-to-month: A landlord can terminate a month-to-month room rental agreement in Montana by giving 15 days’ written notice. A tenant, however, must give at least 30 days’ notice (Mont. Code § 70-24-441).
Tenant’s right to terminate: Tenants may terminate their room rental agreement in Montana if they experience certain life events, such as active-duty military service, domestic violence, landlord harassment, or if the room becomes uninhabitable.
Room abandonment: If a tenant abandons their lease early, Montana law allows you to seek possession of the room, unpaid rent, and actual damages (Mont. Code § 70-24-427).
Landlord Access Laws
Montana law strikes a balance between your responsibility to maintain your home and your tenant’s right to quiet enjoyment. Here are a few relevant laws:
Advance notice: For routine maintenance or repairs, Montana law requires you to give your tenant at least 24 hours’ advance notice and to enter only during reasonable times (Mont. Code § 70-24-312).
Immediate access: In an emergency, you may enter the room without giving your tenant notice (Mont. Code § 70-24-312).
Landlord harassment: Entering a tenant’s room without a legitimate reason or providing adequate notice is a form of harassment. In these cases, your tenant may take you to court or seek to terminate their lease early (Mont. Code § 70-24-410).
Lease Agreement Renewal and Termination
When you are deciding whether to renew or terminate your room rental agreement in Montana, here’s what you need to know.
Required renewals: In Montana, you do not have to renew your tenant’s rental agreement.
Required notice: If you are terminating the Montana room rental agreement, you must give your tenant 30 days’ notice, whether you have a fixed-term or month-to-month agreement. Week-to-week rental agreements, on the other hand, require 7 days’ notice (Mont. Code § 70-24-441).
Month-to-month considerations: If either party does not plan to renew a month-to-month agreement, they must give 30 days’ notice (Mont. Code § 70-24-441).
Room Rental Agreement Montana FAQs
What to include in a Montana room rental agreement?
When writing your Montana room rental agreement, be sure to include all important details about the rental relationship, including rent amount and due dates, security deposit information, house rules and policies, and more.
How do I legally rent out a room?
To legally rent out a room in your Montana home, the first step you should take is to use software for property management to create a room rental agreement for the tenancy.
How to make a Montana room rental agreement?
Use property management software to create and build a Montana room rental agreement that you can customize with your details. Choose a printable PDF that contains all of the required information, add your unique terms, and have both parties sign the agreement.
