Montana

Security Deposit Amount

Montana law does not place a cap on the amount a landlord can charge for a security deposit. The landlord and tenant are free to agree on an amount, which is typically tied to the monthly rent.

Options for Holding

Montana law does not require landlords to hold security deposits in a separate or interest-bearing account. The landlord has the flexibility to manage the deposit funds but is still responsible for returning them as required by law.

Notification Requirements

Landlords are not required to provide specific notification about where the security deposit is being held.

Payment of Interest Earned

Montana does not require landlords to pay interest on security deposits, even if the deposit is held for an extended period of time.

Timeline for Returning

Landlords in Montana are required to return the security deposit within 30 days after the tenant has vacated the premises, or within 10 days after the tenant provides a forwarding address, whichever is later. If deductions are made, the landlord must provide an itemized list of damages along with any remaining portion of the deposit within this timeframe.

Claims Process

The landlord must provide a written itemized statement of deductions within 30 days. If the landlord fails to provide, they forfeit all right to withhold any portion of the security deposit.

If the tenant disputes the deductions, they may file an action in small claims court.

Landlords in Montana may withhold part or all of the security deposit for the following reasons:

• Unpaid rent or utilities
• Damages to the property beyond normal wear and tear
• Cleaning fees, if necessary, to return the property to its pre-rental condition
• Other breaches of the lease agreement

Normal wear and tear, such as minor scuffs on walls or general carpet wear, cannot be deducted from the security deposit.

If the landlord fails to return the deposit or provide an itemized list of deductions within 30 days, the tenant may sue for up to twice the amount of the deposit. Tenants are also entitled to recover court costs and reasonable attorney’s fees if the landlord wrongfully withholds the deposit.

Conditions at beginning of lease: The landlord must provide a written statement of the condition of the unit at the beginning of the lease. Each written statement of the present condition of a premises intended to be let shall contain at least the following:

• 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;
• if the premises have never previously been let, a statement indicating the fact; and
• the signature of the landlord or the landlord's agent.