When a lease renewal rolls around, adjusting a tenant’s rent payment doesn’t have to be complicated. Understanding Montana rent increase laws makes setting the right price quick and easy — without risk or guesswork.
At first glance, Montana isn’t a rent-controlled state, meaning there are no laws regulating rent rates. But other legal protocols still apply, so you may need to jump through a few hoops to properly increase the rent. In this TurboTenant guide, we’ll cover the notice requirements, federal and state laws, and best practices every landlord in Big Sky Country should know.
Is there a rent increase limit in Montana?
Many states set rent restrictions, but the Treasure State doesn’t. Here’s a quick recap of Montana rent increase laws, including statewide caps, local ordinances, and exceptions.
Statewide caps: Montana law doesn’t limit how much landlords can raise rent at renewal. In this case, you can set your own monthly rate, but always give tenants proper notice.
Even though you have the freedom to name your price, we recommend considering the market rate. Factor in your property’s size, features, and surrounding renter demand to stay reasonable and competitive.
Local rent control ordinances: At the city and county level, Montana prohibits local rent control. All in all, jurisdictions across the state can’t regulate what landlords charge tenants (Montana S.B. 105).
Exceptions: Because state law doesn’t list any exceptions, such as condos or new-construction homes, federal rent control programs may apply.
Rent Increase Notice Periods
In Montana, landlords can’t increase rent in the middle of an active lease. Instead, they must notify tenants of their intent to raise rent before the end of the current rental period. The notice requirements depend on the type of lease agreement you have.
Keep the following legal timelines in mind:
Month-to-Month Lease
You must give at least 15 days’ written notice before changing the terms of a month-to-month agreement, including raising rent (Mont. Code § 70-26-109).
Keep in Mind: The 15-day rule applies to month-to-month room rental agreements, too (Mont. Code § 70-26-109). Even if you’re only renting out a single room, make sure you follow the proper protocol.
Fixed-Term Lease
State law doesn’t specify a notice period for fixed-term leases, but we recommend giving tenants a heads-up whenever possible. One way to show transparency and professionalism is by giving tenants at least 30 days’ written notice.
How to Deliver a Rent Increase Notice in Montana
In Montana, the notice period begins when the tenant receives the rent increase letter (Mont. Code § 70-24-108). Use the following methods to meet your lease’s written notice requirements:
- Digital: If both parties agree in the lease agreement, notify tenants via email or landlord software. Start the countdown when the tenant replies or the software sends a read receipt.
- In-person: Hand the notice to the tenant in person, and begin the notice period immediately.
- Mail: Send the notice with Certified Mail or a certificate of mailing. If you use this method, wait 3 days after mailing to begin the notice period (Mont. Code § 70-24-108).
Compared to most states, Montana rent increase laws include detailed requirements for what constitutes legal notice. Consider these rules and regulations to stay compliant.
Understanding Illegal Rent Increase and Retaliation
Additionally, state law specifically prohibits landlord retaliation (Mont. Code § 70-24-431). When raising a tenant’s rent, you can’t punish them for taking protected actions, such as:
- Complaining about a health and safety violation to government agencies or the landlord themselves.
- Becoming a member or organizing a tenant’s union.
In Montana, local courts presume retaliation for 6 months after tenants exercise their legal rights. However, courts won’t presume retaliation if the tenant complained after a landlord sent a rent increase notice (Mont. Code § 70-24-431).
If you’re renewing a tenant’s rent in good faith during the 6-month window, we recommend speaking with a trusted real estate lawyer first.
Pro Tip: Remember to follow federal laws, such as the Fair Housing Act (FHA). Just like when you’re performing tenant screening and reviewing rental applications, you can’t offer unequal rental terms at renewal. Additionally, the FHA strictly prohibits discrimination based on a tenant’s race, sex, religion, color, or other legally protected traits (Fair Housing Act).
Reduce legal risks by being honest and consistent across all applicants. Furthermore, make sure you comply with your lease terms to avoid breaching your agreement. For example, don’t attempt a mid-lease hike without a clause permitting it.
How to Write a Montana-Compliant Rent Increase Letter
Once you’ve reviewed Montana rent increase laws, it’s time to write your rent increase letter. Make sure you include the following details:
- Property address
- Tenant names
- The increase’s exact dollar amount
- New total rent amount
- Effective date
- Instructions for tenants to accept or reject your proposal
Make the paperwork fast and easy with our free rent increase letter template. With a standardized PDF, you create letters that stay professional, compliant, and kind. And best of all, you don’t have to write each document manually.
Managing the Rent Increase Process with Tenants
After you send tenants your rent increase letters, here’s how to keep the process moving smoothly based on their replies:
- Accept: When tenants give you the okay, prepare the new lease and secure the tenant’s signature. Montana doesn’t require a grace period, so begin charging the updated rate on the effective date.
- Decline: If a tenant doesn’t want to continue the agreement, start planning the move-out process. We recommend preparing to re-list the unit and find a new tenant to avoid vacancies.
- Negotiate: Some tenants may ask for a larger conversation about the increase or request that you reconsider it altogether. When negotiating, you don’t always have to budge on your price. Instead, offer a longer lease term or delay the start date of the new rate.
Keep these Montana rent increase laws and pro tips in mind to simplify each renewal, one rate adjustment at a time.
Montana Rent Increase FAQs
How much can I raise rent in Montana?
Montana law doesn’t cap rent increases, but we recommend checking your local market rate to determine a reasonable price.
Is there a maximum late fee in Montana?
Landlords can charge late fees in Montana, but state law doesn’t cap them. Just be sure to outline your late payment penalties in your rental agreement.
Can I increase rent if the tenant is on a verbal agreement?
If you have a verbal agreement, you still have to comply with the state’s rent increase laws. Specifically, you must give tenants 15 days’ written notice if you have a month-to-month verbal agreement (Mont. Code § 70-26-109).