Overview
Montana’s security deposit laws are governed by the Montana Code Annotated § 70-25. These laws provide guidelines for how deposits should be handled, what deductions are permitted, and how quickly the funds must be returned after the end of a tenancy.
Montana gives landlords flexibility while still offering tenants protections against wrongful withholding and lack of transparency.
This guide covers:
How much landlords can charge
Inspection and deposit return rules
Allowable deductions
Penalties for non-compliance
Related Statute: Mont. Code Ann. § 70-25
1. Security Deposit Limits & Storage Requirements
Maximum deposit: Montana law does not limit the amount a landlord can charge as a security deposit. However, the amount must be reasonable and clearly stated in the lease.
Storage requirements: There is no statutory requirement to place deposits in a specific type of account or to pay interest.
Law Reference: Mont. Code Ann. § 70-25-201
2. Security Deposit Returns & Allowable Deductions
Return deadline (with deductions): If deductions are made, the remaining deposit and an itemized list of charges must be returned within 30 days after the end of the tenancy.
Return deadline (no deductions): If no deductions are made, the full deposit must be returned within 10 days after the tenant vacates.
Permissible deductions: Landlords can deduct for unpaid rent, damage beyond ordinary wear and tear, late fees, and other breaches of the lease.
Itemized statement required: A written list of deductions must be provided if any portion of the deposit is retained.
Law Reference: Mont. Code Ann. § 70-25-202
3. Interest Payments & Documentation Requirements
Interest payments: Montana does not require landlords to pay interest on security deposits.
Move-out inspection: Landlords must offer tenants the opportunity to participate in a move-out inspection. The inspection must take place within one week before or after the lease ends.
Notice of inspection: Tenants must receive written notice of their right to attend the inspection.
Law Reference: Mont. Code Ann. § 70-25-201
4. Penalties for Mishandling Security Deposits
Tenant remedies: Tenants may sue for the full deposit, plus court costs and attorney fees, if the landlord withholds funds unlawfully or fails to provide required documentation.
Bad faith penalties: If the landlord is found to have acted in bad faith, the court may award damages equal to the amount wrongfully withheld, in addition to actual damages.
Law Reference: Mont. Code Ann. § 70-25-204
Key Takeaways
Montana does not limit how much landlords can charge for security deposits.
Deposits must be returned within 10 days (no deductions) or 30 days (with deductions).
A move-out inspection must be offered and itemized deductions must be disclosed.
Landlords acting in bad faith may be liable for additional damages and legal fees.
Following Montana’s security deposit rules helps avoid disputes and ensures fair treatment for both parties when a lease ends.
Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. Readers should not act or refrain from acting based on any information included in this post without seeking legal counsel or other professional guidance specific to their situation. The information is provided “as is” without any representations or warranties of any kind, express or implied, including but not limited to the accuracy, completeness, or reliability of the content. Laws and regulations may change and vary by jurisdiction.
