What is a Montana Residential Lease Agreement?
A residential lease agreement in Montana is a legally binding contract between a landlord and a tenant for the rental of a residential property, such as an apartment, house, or unit, for a specific period of time. It establishes the terms and conditions essential for the rental relationship. This printable residential lease agreement in Montana serves as an enforceable document to protect both parties from unwanted liabilities or claims of damages arising from breaches of the lease conditions .
It is in the form of a legally enforceable contract, which should include the following provisions: The Montana residential rental agreement forms are leased for an unspecified term (month-to-month) unless the parties specify a date upon which the lease terminates. The lease automatically renews each month at the expiration of the twelve-month period unless either party gives the other 30 days’ notice of his intent to terminate the lease. Notice required from tenant. Notice required from landlord. 70-24-401. Termination of month-to-month periodic tenancy. 70-24-403. Termination for cause. 70-24-407. Unlawful ouster, exclusion, or diminution of services. 70-24-409. Periodic tenancies and leases.
Essential Parts of a Montana Lease Agreement
Regardless of the lease type, there are essential elements to include in any Montana residential lease agreement.
Tenant and Landlord Information
A lease agreement should always include the name of the tenant(s) and landlord(s). If you will allow pets, including the pets in the agreement will eliminate future arguments. The lease should clearly state if the property holds storage or parking rights. It is standard practice for landlords to retain a spare key, but if not, it is advisable to clarify this in writing. Indicating whether utilities will be included in a rent payment is also vital.
The Duration of Tenancy
Rental agreements in Montana may be classified either as a "periodic" tenancy or a "fixed-term" tenancy. A periodic agreement has no fixed end date, while a fixed-term agreement specifies a particular duration, typically between one year to two years. It is common for the lease agreement to contain a clause that stipulates the renewal of the lease at the end of the term. At this point, the landlord may choose to increase rent or even decline to renew the lease or period. Because specific Montana statutes determine whether the lease automatically renews or terminates, it is best practice to specify the intention of the tenant and landlord in the lease agreement.
Rent Payments
Often, late rent payments are the cause of unwarranted landlord-tenant disputes. In a lease agreement, you should very clearly explain when and how a tenant should pay their rent, and any penalties for a late rent payment.
Property Description
While a lease may not necessarily need to include a detailed property description, the terms and conditions covering the tenant’s use of the premises should be exhaustive enough to avoid any potential conflicts.
Legal Issues Involving Montana Lease Agreements
Like many other states, Montana has laws which define the legal obligations of tenants and landlords in residential lease agreements. When it comes to residential leases in particular, the law is primarily found under Article 3 of Montana’s Landlord and Tenant Act (Montana Code Ann. § 70-24-301, et seq.).
Application of Article 3
Montana’s Landlord and Tenant Act does not apply to any of the following:
Any lease or license for space in a facility that is exempt from the Montana Residential Landlord and Tenant Act and whose lease or license is received by the Montana Department of Public Health and Human Services in accordance with Title 50, chapter 5.
The residence of a parent, guardian, custodian, or caretaker of a person with a disability, if the residence is not owned or leased by the owner, custodian, or keeper of the person with a disability, and the person with a disability is not charged or held responsible in any way for the payment of rent by the parent, guardian, custodian, or caretaker of that person with a disability.
Tenants: Obligations and Rights
Montana law imposes various obligations and restrictions on landlords. However, tenants are not without responsibility in a lease agreement.
While the law requires a landlord to do a number of things related to the premises, it also places certain obligations on the tenant to do the following:
Failure to comply with the legal obligations above can subject the tenant to a number of consequences under Montana law. Perhaps most importantly, failure to pay rent is grounds for eviction under Mont. Code Ann. § 70-24-410.
Landlords: obligations and rights
While the above described the legal obligations of tenants, the law also imposes a number of legal obligations on landlords including:
Violation of the above listed rights can have a number of adverse consequences to the landlord, including:
Conclusion
Tenants and landlords should familiarize themselves with Montana’s Landlord and Tenant Act as it is the law governing their relationships during the tenancy. Failure by either party to meet the requirements of the law can lead to a variety of negative consequences, including eviction from the premises.
Common Terms and Provisions in Montana Lease Agreements
From governing the responsibilities of the landlord and the tenant to outlining the terms for termination, security deposits often consume most of the text of Montana residential lease agreements. Security Deposits: Security deposits are a common feature in Montana residential leases. A security deposit, typically equal to one month’s rent, is paid by the tenant and held by the landlord as insurance against damages or unpaid rent. The Montana security deposit statute, Mont. Code Ann. § 70-25-501, requires landlords to disclose to tenants whether or not any interest will be paid on the deposit and if so, at what rate and when. Maintenance: The landlord’s responsibilities are governed by Mont. Code Ann. § 70-24-303, which places limitations on the ability of a landlord to contract away its responsibility to repair and maintain a residential rental unit. Under this statute, the landlord cannot contract away its duty to: The landlord’s obligations go further than simply making repairs. Landlords have a broad scope of liability to tenants for injuries caused by unfit or unsafe conditions of the residential unit. Mont. Code Ann. § 70-24-302(1). Essentially, the landlord must ensure that the premises are fit for human habitation and comply with the local building or housing codes materially affecting health and safety. Termination: In addition to the statutory termination requirements, which generally require a notice of two months for any lease over one year, termination is most often determined by the parties’ written agreement. Evictions are governed by Mont. Code Ann. § 70-24-421 et seq. and are covered separately in this publication. Default: As with any contracted relationship, each residential lease should cover default procedures. Commonly, a provision in a lease will require the tenant to notify the landlord, in writing, of no less than five days prior to delinquency. If past due, rent charges usually are broken down into partial payments before the full amount is demanded. Most often, no rent payment will be required if the tenant has vacated the premises and surrendered the key.
Tenant and Landlord Rights and Responsibilities in Montana
Most people have heard the phrase "you can’t get something for nothing"; which is generally true. This saying, usually directed at children, has been around since the 1500’s. It is appropriate as it relates to residential lease agreements in Montana because both the tenant and the landlord have rights and responsibilities. Put another way, both parties have something the other wants or needs. The term is often shortened by some to "you only get what you pay for". That is not the case with residential lease agreements because the tenant pays rent in order to be able to inhabit the home.
The cost of rent is determined by the market and could be based on square footage, location, character and amenities. But no matter the cost, tenants under residential lease agreements (as opposed to commercial leases) must be provided a home that is habitable. At a minimum, a home must be safe from "inhabitants" such as rodents and insects. Any other requirements regarding habitability will be set out in statute and in the rental agreement. If the home is not habitable, the tenant generally has a right to withhold rent until the problem(s) is/are fixed. Thus , tenants have a built-in affirmative defense against actions for unpaid rent or forcible eviction.
Landlords, on the other hand, have an absolute right to timely rent. Failure to pay rent, whether partially or in full, is a basis for eviction. And, landlords have a right to enter the home, with proper notice, in order to make necessary repairs, change light bulbs, etc. However, tenants have a reasonable expectation of privacy in rental units even if they invite friends over or share the unit with roommates. Thus, landlords should use caution before entering rental units unless it is an emergency situation that matches up with the lease agreement.
Parties can agree to more rights and responsibilities, however, the law will not enforce any agreement that is contrary to public policy. For example, parties cannot agree that the tenant will always pay the rent, but is entitled to wait 30 days before paying the rent just because the tenant does not get paid for 30 days. In the same example, the landlord could not agree to accept partial rent (resulting in partial eviction) because they are both in agreement.
How to Create a Montana Residential Lease Agreement
To draft a Montana residential lease agreement, begin with the identification of the parties who are entering into the lease agreement. Along with identifying the landlord and the tenant by name (first, middle, and last), in the lease agreement language one should also provide the address of where the landlord is to receive notice if sent by mail or in person. It’s customary for the landlord to designate an agent or some other person to act on his or her behalf to receive and handle such notices.
The next step in drafting a Montana residential lease agreement is to image or otherwise write a description of the residential rental property being let. With this written description, one should provide such details as what type of residential rental unit it is (for example, a single family home or condominium) and the type of utilities that are supplied with the use of the residential rental unit (for example, water service, electricity service, trash service, and sanitary sewer service). Also specify who is responsible for each of the details noted in the written description provided. Generally, the landlord is responsible for all or most utilities while the tenant is responsible for all or most utilities other than water service and which utilities may be disabled at the end of or during the lease term for nonpayment. In addition, the written description should provide details about who is responsible for any maintenance work required to maintain the residential rental unit.
Once the parties, identification of the residential rental unit being let, the utility service(s) provided with the residential rental unit, and who is responsible for what are described in the lease agreement, the next steps are to provide the lease term (for example, whether the lease term is month-to-month or for a set term of months or years), the rent to be paid, and the process for the payment of rent. The parties should also decide where the rent shall be delivered (for example, to the residential rental unit, to the landlord or to the landlord’s agent).
Lastly, each party to a Montana residential lease agreement should sign the lease agreement and the dates that they signed the lease agreement should be included. Having a third neutral party sign the lease as a witness may also be advisable.
FAQs on Montana Lease Agreements
Here are answers to commonly asked questions regarding Montana residential lease agreements:
Can a landlord terminate a lease early in Montana?
Most Montana leases require landlords to provide a written notice if rent has not been paid. If the tenant does not pay rent within fourteen days, the Montana landlord may terminate the lease. The termination may occur on the following day or at the end of the rental period. If the landlord has established a method of payment and the tenant fails to pay and reestablish it in fourteen days, the landlord may terminate the lease. Monetary defaults in the lease usually occur during the rental period. Except for rent defaults, lessors must give tenants adequate written notice of lease termination.
How much notice do I have to give my tenant in Montana?
If your lease did not contain a provision for how much notice you had to provide either at the end of the lease period or before terminating for lease defaults, then Montana law requires you to provide the following notice:
Can I add a Montana Security Deposit to my Residential Lease Agreement?
A good Montana lease should contain the terms of the security deposit . You may alter your security deposit by adding it to a new or existing lease. If you are adding a clause to an existing lease, both parties must agree to the change and sign it. Use the same required notice period as the one listed for tenant lease termination. Because of the legal requirements for returning a deposit, it is better to retain the original amount unless the tenant agrees to a replacement deposit.
What Happens When the Tenant Abandons the Lease?
The tenant vacating the leased property is often called "abandonment." By definition, they cease using the leased property. The Montana Residential Landlord and Tenant Act allows the landlord to recover rent without a court action in Montana. If you have established a method of payment under the lease terms, you may claim the deposit for rent. If you have not specified how you prefer payment, you may sue in small claims court for rent owed.