Security deposits in Montana are regulated by the Montana Code Annotated, Title 70, Chapters 24 to 25. Certain municipalities may have local laws that supplement state regulations. To ensure full compliance, verify the regulations applicable in your area.

KEY POINTS AT A GLANCE

Deposit Cap: No

Holding Requirements: No

Interest Required: No

‍Return Window: Varies

COLLECTION & HOLDING REQUIREMENTS

Deposit Cap: Montana state law does not currently limit the amount that landlords/property managers can require as a security deposit.

Holding Requirements: Montana state law does not currently require security deposits to be held in bank accounts within the state, separate accounts, or interest-bearing accounts. 

Information Provided to Tenant: Montana state law does not currently require landlords/property managers to disclose where the security deposit is held. In conjunction with signing the lease, landlords/property managers must provide the tenant with a written statement of the condition of the premises.

‍Interest on Deposits: Montana state law does not currently require landlords/property managers to pay interest to tenants on security deposits.

RETURN

Timeline: The rental unit may be inspected 1 week before the termination of the tenancy at the request of the landlord/property manager or the tenant. If the landlord/property manager makes deductions to the security deposit, they must provide the tenant with a written list of deductions and the portion of the deposit being returned within 30 days after the tenant vacates the premises. If no deductions are made, the full security deposit must be returned within 10 days of vacancy. 

Documentation of Deductions: Montana state law does not currently require landlords/property managers to include any additional documentation or specific level of detail in their written list of security deposit deductions.

Permissible Deductions: Landlords/property managers may deduct the following from security deposit funds:

• Unpaid rent or utilities
• Damages beyond normal wear and tear
• Cleaning expenses to restore the unit to its condition at the start of the tenancy (but only if notice is provided to the tenant of the cleaning that needs to be done, and the tenant fails to do so)
• Other penalties due under the lease

‍Penalties: Failure to provide a written statement of condition at the beginning of the tenancy, or a failure to return the deposit or provide the written list of deductions at the end of the tenancy, may result in the landlord/property manager being liable to return the full deposit, plus attorney’s fees and court costs if the tenant wins in a lawsuit.

SALE OF THE RENTAL PROPERTY

If the property is sold, the landlord/property manager must provide written notice to the tenant of the sale.