Official Law Citation: Lease terms and prohibitions are structured by the Montana Residential Landlord and Tenant Act of 1977.

While Montana is relatively permissive regarding rent amounts and term lengths, the state forcefully regulates precisely what can and cannot be written into a residential lease agreement.

Under the Montana Residential Landlord and Tenant Act of 1977 (effective July 1, 1977), writing a "prohibited provision" into your lease doesn't just render that specific sentence unenforceable—if the landlord deliberately attempts to enforce it anyway, they can face severe financial penalties.

The Bedrock Rule: Good Faith

Montana law imposes an overarching "Obligation of Good Faith" (MCA § 70-24-111). Every duty established by the Landlord and Tenant Act, and every act performed under a lease agreement, must be executed in good faith. If a landlord uses a technicality in a lease clause to maliciously evict a tenant, a Montana court can strike the action down.

Essential Lease Elements

While standard elements like rent amounts and lease dates are obvious, a compliant Montana lease must include:

1. Disclosure of Identity: The lease must clearly identify the name and address of the person authorized to manage the premises, and the owner (or the owner's agent) authorized to receive service of process (MCA § 70-24-301).
2. Move-in Condition Statement Attachment: If a security deposit is collected, the landlord must provide a separate written statement of the present condition of the premises (MCA § 70-25-206). Failure to do so bars the landlord from recovering damages unless they can prove the damage by "clear and convincing evidence."
3. The Mold Disclosure: Every rental agreement must include the statutory Mold Disclosure Statement. Landlords must provide this specific statement and disclose any known presence of mold or prior mold testing results (MCA § 70-16-703).
4. Late Fee Limitations: The lease must explicitly define the late fee structure. Montana does not have a statutory percentage or dollar cap on late fees for residential leases (MCA § 70-24-201). Fees must be "reasonable" and explicitly defined in the written rental agreement.

Prohibited Lease Provisions (What NOT to Include)

Under MCA § 70-24-202, you cannot force a tenant to sign away their statutory rights. A rental agreement may not provide that a party:

• 1. Waives Legal Remedies: The tenant cannot agree to waive or forego any rights or remedies available under the Montana Residential Landlord and Tenant Act.
• 2. Attorney Fees: The lease cannot mandate that the tenant will automatically pay the landlord's attorney fees, except that the agreement may provide that attorney fees may be awarded to the prevailing party in an action to enforce the agreement (MCA § 70-24-442).
• 3. Exculpatory Clauses: The lease cannot contain a clause where the tenant agrees to the exculpation or limitation of liability of the landlord arising under law or to indemnify the landlord for that liability or the costs connected therewith.
• 4. Confession of Judgment: The lease cannot force the tenant to authorize any person to confess judgment on a claim arising out of the rental agreement.

The Penalty for Prohibited Clauses

If a landlord includes a prohibited provision in the lease, that specific provision is "unenforceable."

However, if a landlord knowingly uses a lease containing these illegal provisions and tries to enforce them against the tenant in court, the tenant can countersue. The tenant may recover actual damages and an amount up to three months' periodic rent.

See our Eviction ProcessPreview unavailable guide.

Subletting and Assignment

Montana law does not grant residential tenants an automatic, statutory right to sublet their apartments.

Whether a tenant can sublet their unit to a third party is determined entirely by the language in the lease agreement. Most Montana landlords manage a clause that strictly prohibits subletting or assigning the lease without the landlord's express, prior written consent. If a tenant sublets in violation of this clause, they are breaching the lease and are subject to a 3-day notice to cure or quit (MCA § 70-24-422(1)(c)). If the violation is not remedied within 3 days, the landlord may terminate the agreement.

How Landager Helps

Landager tracks lease terms, payment deadlines, and important communications - making it easy to stay compliant with Montana regulations.

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