Montana security deposit account for landlords
Easily collect and manage deposits for every property with dedicated security deposit accounts.
Why use a security deposit account in {{ state }}
Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.
Benefits for property
owners
Repair and maintenance
Covers property damage such as paint, carpet, or floor damage, including costs caused by pets.
Fund separation
Meet state requirements for holding deposits in a dedicated tenant security deposit account.
Streamlined returns
Simplifies refunding tenants while accounting for deductions like cleaning or unpaid utilities.
Benefits for tenants
Fair protection
Funds are protected from misuse, covering only actual repair costs like cleaning, carpet replacement, or floor damage.
Transparency on deductions
Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
Savings potential
Deposits may be held in a tenant security deposit account or rental deposit account that earns security deposit interest, helping tenants recover more than they put in.
{{ state }} security deposit account
A security deposit escrow account in Montana is not legally required, but it’s mandated to keep funds in a separate bank account. Inform your renter about the account name and address of the tenant's security deposit in Montana.
{{ state }} security deposit
limits
There is no legal maximum security deposit Montana landlords need to follow. You have the freedom to set an amount that fits your property’s value. However, the average security deposit in the state is typically equal to one month’s rent, though some owners may request up to two months for furnished or high-value rentals.
{{ state }} security deposit interest
Paying interest on security deposit Montana funds is not required by the current state law security deposit rules. As you are not legally required to hold funds in a non-interest-bearing account, you don’t have to worry about the security deposit interest rate.
Go beyond standard security deposit accounts
Collect, return, and track deposits by tenant and
property, even when funds are held in external accounts.
{{ state }} security deposit accounts
Hold each security deposit in separate non-interest or interest-bearing accounts that earn up to [v="apyvalue"] APY².
Unlimited accounts for all entities
Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.
Free online payments
Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.
Automated bookkeeping
Track and tag payments to the right tenant and property — automatically.
Essentials for every door
Everything you need for every part of the rental process.
Lease creation and e-sign
Upload or create and e-sign state-specific leases online.
Free tenant screening
Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.
Property-specific accounts
Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.
{{ state }} security deposit rules
No state limit; 1 to 2 months' rent recommended
No
Separate account, but no escrow; inform tenant of the account name and address
Unpaid rent or utilities, repairs, lease violations, and cleaning costs
30 days (10 days if no deductions claimed)
Additional resources
ARTICLE
How to collect security deposits
FAQs
How much security deposit can a landlord charge in Montana?
There is no official Montana security deposit limit. You can decide the amount yourself, but most landlords charge the first and last month's rent plus a deposit equal to one to two months’ rent.
Is interest required on tenant security deposits in Montana?
No, paying Montana security deposit interest is not mandatory. You can hold funds in a non-interest-bearing landlord-tenant security deposit bank account. Montana law simply asks that you keep the funds separate and accessible.
How should I issue a security deposit receipt to tenants in Montana?
Send tenants a written receipt as soon as you receive the security deposit fund. It is also a legal requirement in Montana to give a written statement of the property's condition (a move-in checklist) when you collect the deposit.
How many days to return a security deposit in Montana?
Return the tenant's security deposit to Montana residents within 30 days of move-out. If you make no deduction, the time period drops to 10 days. Make sure to give a written list of any deductions and the remaining balance. If the tenant doesn't give you a new address, mail it to their last known one.
What can a landlord deduct from a security deposit in Montana?
You can use security deposit funds to cover any unpaid rent, cleaning, and repairs beyond normal wear and tear. If you withhold money without a valid reason or miss the deadline, you could be sued for double damages. These landlord rights security deposit rules apply to any house rental, apartment, or condo.
Can a security deposit be used for unpaid rent in Montana?
Yes, you can use the security deposit toward any rent or utilities the tenant still owes when they leave. Keeping these funds in a separate security deposit bank account in Montana makes such a deduction easier.
Can landlords keep a security deposit for breaking a lease in Montana?
Landlord security deposit Montana rules allow you to use funds from the deposit to cover the costs of re-renting the unit or any lost rent, in case a tenant breaks the lease agreement
