Is it necessary to have a written lease or rental agreement under Montana law?

A rental agreement may be either written or verbal – both are legally binding. However, a verbal agreement can be difficult to enforce. The landlord and tenant must decide on whether the agreement will be verbal or written, and must choose a standard (month-to-month), term, or lease agreement (such as 1 year, etc). If a lease expires but the tenant continues to occupy the premises and pay rent, and the landlord continues to accept the rent, the rental agreement becomes a standard month-to-month agreement. Montana law does not allow for lease agreements of more than 1 year. If a lease is signed for a period of longer than 1 year, the lease expires after 1 year and the rental agreement becomes month-to-month.

A "term" agreement is a lease which occasionally prohibits the tenant from terminating the agreement before the end of the rental period, but allows the landlord to terminate the agreement, raise the rent, or otherwise change the terms of the agreement during the rental term. This type of agreement is beneficial only to the landlord.

What about a signed move-in move-out inspection report?

At the beginning of the tenancy the landlord must provide the tenant with a written statement of the condition of the premises. The landlord must also provide a list of damage and cleaning charges assessed to the previous tenant, if the tenant requests it. The condition of premises report provides evidence of the condition of the unit when the tenant moved in. If the landlord fails to provide a statement of the condition of the premises, s/he relinquishes his or her claim to withhold cleaning or damage charges from the security deposit at the end of the tenancy.

Can the landlord charge a deposit?

The landlord has the right to charge a security deposit (which includes cleaning deposits and any other money collected by a landlord to ensure the premises are left clean, no damages have occurred, and all rent and utilities are paid). Non-refundable cleaning and security deposits are not allowed under Montana law.

Within 7 days of the final termination of the rental agreement, a final inspection of the premises must be performed, preferably with both the landlord and tenant present. After inspection, the landlord must deliver a written list of additional cleaning to be completed by the tenant to bring the premises into the same condition as when it was rented. If there is no further cleaning to be completed, no damages for which the tenant is liable, and no unpaid rent or utility bills for which the tenant is responsible, the landlord must return the security deposit within 10 days. If there are any deductions to be made from the security deposit, the landlord must deliver within 30 days an itemized list of deductions along with the balance of the deposit.

When is the landlord allowed to increase the rent?

Under a standard month-to-month agreement, the landlord must give 30 days written notice to the tenant before any rental increase goes into effect. In the case of a lease agreement, the landlord may not increase the rent until the end of the specified term. If the landlord wishes to increase the rent at the expiration of the agreement, he or she must provide the tenant with written notice 30 days before the lease expires.

There is no state law to restrict how much a landlord can charge for rent or how much the landlord may raise the rent. However, rent increases may not be allowed if they are determined to be retaliatory or discriminatory.

How can a lease be terminated?

A standard month-to-month agreement can be terminated by either party on 30 days written notice FOR ANY REASON, unless the termination is discriminatory or retaliatory. Under a lease for a specified term, neither party can terminate the rental agreement until the lease expires, or unless the terms of the lease are violated. If either party wishes to terminate the lease at the end of the term, a 30-day notice must be given to the other party.

Can a tenant sublet the premises?

Some landlords allow tenants to sublet and some do not. A tenant cannot sublet the rental unit unless the landlord has given written consent. The sublet agreement cannot be for longer than the period of the rental contract, in other words, it cannot extend past the end of the existing lease, or be for longer than one month’s time under a month-to-month agreement. The original tenant is still responsible for the timely payment of rent and for any damages caused by the subtenant, but they also take on the rights and responsibilities of being a landlord with respect to the subtenant.

When is the landlord permitted to enter the premises?

Except in emergencies or unless it is impracticable to do so, the landlord must give the tenant 24 hours notice (verbal or written) of his or her intent to enter the premises, which must be at reasonable times. The landlord can enter the premises to inspect the property, make repairs or improvements, supply services or show the premises to prospective tenants, purchasers or contractors. The tenant cannot unreasonably deny access to the landlord. The landlord can enter without notice in an emergency, if s/he has a court order, or if the rental agreement contains a provision allowing access when reasonably necessary if the tenant has been absent for more than 7 days.

On what grounds can a landlord evict a tenant?

If a landlord wants to remove a tenant, s/he must terminate the rental agreement, ask the tenant to leave, and, if necessary, take the tenant to court to get an eviction order.

A landlord can eviction a tenant on the following grounds:

(a) nonpayment of rent, late charges or common area maintenance fees;
(b) late payment of rent, late charges or common area maintenance fees 3 or more times in a 12-month period, provided that the landlord gave written notice after each nonpayment incident;
(c) violation of a mobile home park rule that creates an immediate threat to the health and safety of any resident of the park if the violation is not cured within 24 hours after written notice is given;
(d) 2 or more violations within a 12-month period of any combination of one or more mobile home park rules, the violation of which would have a significant adverse impact on the mobile home park or its residents;
(e) 2 or more violations with a 12-month period of the same rule or regulation;
(f) disorderly conduct that results in disruption of the rights of others to the peaceful enjoyment and use of the premises;
(g) endangering other residents or park personnel, causing substantial damage to the park premises;
(h) conviction of the tenant of a violation of a federal, state or local ordinance if the violation is detrimental to the health, safety, or welfare of other residents or the landlord, or the landlord’s documentation of a drug violation;
(i) changes in the use of mobile home park land;
(j) a legitimate business reason.

A landlord cannot physically remove a tenant or their belongings, change the locks, or cut off utilities or services in order to force the tenant out.

Further, a landlord may not terminate the rental agreement, bring or threaten to bring an eviction action, raise the rent or decrease services to the tenant as retaliation because the tenant has submitted a written complaint to the landlord or to federal or state authorities about the condition of the rental unit, or joined a tenant’s organization.

The foregoing summary is provided for information purposes only and is not to be considered legal or business advice. The information may not be complete, accurate or applicable for any particular situation and should not be relied upon.