How to Hold and Return a Security Deposit in Montana

Managing a Security Deposit in Montana

In Montana, there is no legal limit on the amount you can charge as a security deposit.

Storing the Deposit

Montana offers no state legal guidance on how to store a security deposit. Many people opt to keep them in a bank account separate from their personal finances. When you receive the deposit, you are legally required to make a written record of the condition of the apartment, to be referenced when assessing the unit for damages at the end of the sublease term.

Returning the Deposit

You must return your subtenant's security deposit within 10 days of the end of the sublease. You can use the security deposit to cover any unpaid rent at the end of the sublease or to cover the cost of any damages to the unit that exceed normal wear and tear. If you plan to keep any of the security deposit, you must provide an itemized list of the deductions detailing how much is to be withheld and why within 30 days of the end of the sublease. If you fail to follow these instructions, you forfeit your right to withhold any of the security deposit, so be sure to follow them closely. If you fail to follow these instructions and your subtenant files a suit in Small Claims Court, they may be awarded by the court the amount wrongfully withheld plus attorney's fees.