Montana security deposit rules
Montana sets no statutory limit on the size of a security deposit. The deposit must be returned within 10 days after termination of the tenancy if no deductions for damage, cleaning or unpaid rent/utilities; within 30 days after termination if deductions are taken, together with a written itemized list of damages and charges. No interest is owed on the deposit under state law.
What the law requires
No statutory limit. Returned Within 10 days after termination of the tenancy if no deductions for damage, cleaning or unpaid rent/utilities; within 30 days after termination if deductions are taken, together with a written itemized list of damages and charges. MCA 70-25-201 lists permitted deductions (damage, unpaid rent, late charges, utilities, actual cleaning) and sets no maximum deposit. 2025 change: HB 444 (Ch. 656, L. 2025, signed 12 May 2025) amended 70-25-201 and 70-25-202 to allow cleaning/deduction notices by e-mail, phone or text and to allow return of the deposit by electronic funds transfer, cash, check or mail to the tenant's new or last-known address. Prior amendments 2021 (Ch. 536) and 2023 (Ch. 383).
- Deductions: unpaid rent and damage beyond normal wear and tear, itemised in writing. Cleaning and repainting after ordinary use are normal wear in most states.
- Deadline: the 10-day clock usually starts when the tenant moves out and, in many states, when a forwarding address is provided. Missing it typically forfeits the landlord’s right to keep any of the deposit and can add statutory damages.
- Interest: none required under state law. Cities in some no-interest states have their own ordinances, so check the municipal code where you rent.
Move-out checklist
- Give written notice of the move-out date and a forwarding address; many deadlines only start when the landlord has the address.
- Photograph every room after cleaning, with a timestamp. Request a joint inspection where the state allows one.
- If the deadline passes, send a written demand citing MCA § 70-25-202; § 70-25-201. Small-claims court handles deposit disputes in every state and most cap the claim well above a typical deposit.
Related Montana rules
- Late fees: No statutory cap or grace period; late charges are permitted if set in the rental agreement (MCA 70-25-201 expressly allows deducting 'late charges' from the deposit) and are subject only to general reasonableness/penalty principles. Late fee calculator.
- Notice to end a tenancy: At least 30 days' written notice by either party, given at any time during the tenancy, for month-to-month tenancies; 7 days for week-to-week (MCA 70-24-441) Notice calculator.
- All rules on one page: Montana landlord and tenant law.
Frequently asked questions
How much can a landlord charge for a security deposit in Montana?
There is no statutory cap in Montana; the market and the lease decide. MCA 70-25-201 lists permitted deductions (damage, unpaid rent, late charges, utilities, actual cleaning) and sets no maximum deposit. 2025 change: HB 444 (Ch. 656, L. 2025, signed 12 May 2025) amended 70-25-201 and 70-25-202 to allow cleaning/deduction notices by e-mail, phone or text and to allow return of the deposit by electronic funds transfer, cash, check or mail to the tenant's new or last-known address. Prior amendments 2021 (Ch. 536) and 2023 (Ch. 383).
How long does a landlord have to return a security deposit in Montana?
Within 10 days after termination of the tenancy if no deductions for damage, cleaning or unpaid rent/utilities; within 30 days after termination if deductions are taken, together with a written itemized list of damages and charges. The statute is MCA § 70-25-202; § 70-25-201.
Does a Montana landlord have to pay interest on the security deposit?
No. Montana law does not require interest on residential security deposits.