Revise tenant moveout laws
SB 126 revises Montana’s tenant moveout and security deposit laws. It defines examples of “normal wear,” including small nail holes, minor wall scuffs, and visible carpet wear in high-traffic areas, and it limits what landlords may deduct from security deposits for cleaning and damage. The bill also caps a landlord’s labor charge for cleaning at the prevailing cost of a professional cleaner, requires written notice before cleaning deductions are taken in most cases, and bars deductions for painting or recarpeting after a tenancy lasting two or more years.
The bill shortens several landlord deadlines from 30 days to 21 days. Landlords would have 21 days after a tenancy ends or a leasehold is surrendered to provide an itemized list of charges and any refund, and tenants could bring wrongful withholding claims after 21 days rather than 30. If a landlord uses a professional cleaner, the tenant must receive a copy of that cleaner’s bill. The bill also keeps the existing rule that landlords are not wrongfully withholding if they mail funds to the tenant’s last known address when the tenant fails to provide a forwarding address, though the landlord remains liable for the amount due.
In practical terms, the bill would tighten landlord obligations and expand tenant protections around security deposit deductions, especially for routine wear and tear and post-tenancy cleaning. It would amend Sections 70-25-201, 70-25-202, and 70-25-204 of the Montana Code Annotated, which govern deductions from residential security deposits, return timelines, and civil remedies for wrongful withholding.
The general sentiment appears mixed but leaning cautious or unfavorable in the legislative process, as reflected by the bill’s failure to advance and its final status of “Died in Process.” The only recorded vote shown is a 6-3 vote on a Senate Judiciary motion to table the bill, suggesting substantial opposition or at least insufficient support to move it forward. No committee transcript is provided, so the record does not show detailed debate, but the outcome indicates the proposal was contested.
The main point of contention is likely the balance between tenant protections and landlord flexibility. Supporters would view the bill as preventing excessive or vague security deposit deductions and speeding up refunds, while opponents would likely argue it imposes stricter administrative burdens, limits recovery for legitimate cleaning and maintenance costs, and reduces landlord discretion in assessing moveout damage.
SB 126 would amend Montana’s landlord-tenant statutes governing residential security deposits and moveout charges. It would add a statutory definition of normal wear, limit cleaning charges and landlord labor charges, prohibit certain deductions for painting and recarpeting after two or more years of tenancy, require itemized notice and supporting documentation for professional cleaning charges, and shorten several notice and refund deadlines from 30 days to 21 days. It would also adjust the timing for wrongful withholding claims under Title 70, chapter 25, part 2, thereby changing the rights and obligations of landlords and tenants statewide.
The available voting history suggests the bill did not have enough support to advance. The Senate Judiciary vote to table it was 6-3, and the bill ultimately died in process. That outcome indicates skepticism among a majority of the committee, even though the bill’s subject matter is consistent with tenant-protection reforms. Because no committee transcript is available, the record does not show detailed arguments, but the procedural result points to a generally unfavorable or divided sentiment.
The central dispute is over how far to restrict landlords’ ability to deduct from security deposits for cleaning, repainting, and recarpeting. Tenant advocates would likely support the bill’s clearer definition of normal wear, the cap on landlord labor charges, and the shorter refund timeline, while landlord interests would likely object that the bill narrows legitimate recovery for damage and cleaning and adds documentation requirements. The 21-day deadline changes and the ban on deductions for painting or recarpeting after two years are likely the most contentious provisions, along with the requirement to provide a professional cleaner’s bill when such services are used.