What late fees can a landlord charge in Montana?
Montana sets no cap on residential late fees and mandates no grace period — rent is payable without demand or notice at the time the lease fixes (Mont.
Code Ann. 70-24-201(3)), and the statutes acknowledge late fees only to define them as part of 'rent' when agreed on in the rental agreement. A fee's enforceability therefore rests on the lease and ordinary contract law, with a court able to strike an unconscionable clause under 70-24-404. What Montana DID regulate, effective June 9, 2025, is payment-method fees: a landlord may not charge any additional fee based on the tenant's rent payment type — cash, check, or electronic — except to pass through an actual electronic bank fee (70-24-201(4), HB 810). The three-business-day pay-or-quit notice in Montana's eviction statute is a termination cure window, not a rent grace period, and for mobile-home lots three late payments in a year can support a 30-day termination notice.
Montana late fees at a glance
| Statutory cap | No statutory cap (see reasonableness standard and notes) |
|---|---|
| Mandatory grace period | None mandated statewide |
| Must be in the lease | Not addressed by statute |
| Daily fees | Not addressed by statute; a daily late fee would be a lease term bounded only by the unconscionability backstop (70-24-404), the statutory good-faith obligation (70-24-109), and ordinary contract/liquidated-damages principles. |
| Reasonableness standard | No statutory cap, formula, or reasonableness standard for late fees — the Residential Landlord and Tenant Act of 1977 acknowledges late fees without limiting them: 'rent' is defined to include 'late fees, or other charges as agreed on in the rental agreement' (70-24-103(14)), and late charges and lease penalties are deductible from the security deposit (70-25-201(1)). The only brakes are 70-24-404 (court may refuse to enforce an unconscionable rental-agreement provision, though since a 2021 amendment unconscionability may not be premised on the parties' statutory maintenance duties) and the 70-24-109 obligation of good faith. No Montana appellate decision fixing a late-fee formula was found. |
Notes and caveats
Statute citations
- Mont. Code Ann. § 70-24-103 (14) Official source
- Mont. Code Ann. § 70-24-201 (3), (4) Official source
- Mont. Code Ann. § 70-24-404 (1)-(3) Official source
- Mont. Code Ann. § 70-25-201 (1) Official source
- HB 810, 2025 Mont. Laws ch. 768 (payment-type fee ban; status and chapter via official api.legmt.gov) secs. 1-2 Official source
How this record was verified: Direct read of statute text on the official Montana Code Annotated site (mca.legmt.gov, MCA 2025 edition): all nine sections of Title 70 ch. 25 and sections 70-24-103, -108, -201, -202, -312, -403, -404, -410, -422, -441 plus 7-1-111 and 1-2-201, each load-bearing section fetched twice in independent reads (WebFetch pass + raw HTML pass) with all figures matching verbatim (30-day/10-day deposit return, 24-hour cleaning cure window, certified-mail 3-day service rule, 24 hours' entry notice, 30-day/7-day periodic termination notice, rent-control preemption text). Every amendment claim additionally pinned character-for-character from official enrolled bills downloaded via the Legislature's document API (docs.legmt.gov): HB 444 (2025, Ch. 656) and HB 488 (2023, Ch. 383) for 70-25-201/-202, HB 810 (2025, Ch. 768) for 70-24-103/-201, HB 541 (2021, Ch. 536) for 70-24-312/70-24-201/70-25-201, SB 105 (2023, Ch. 319) and HB 283 (2023, Ch. 572) for 7-1-111; chapter numbers pinned from the official bill-to-chapter tables (archive.legmt.gov MCA Supplements). Bill status/signing dates read from the official api.legmt.gov bill-status history for 2025 bills (HB 444 signed 2025-05-12; HB 810 signed 2025-06-09) and corroborated via Montana Free Press Capitol Tracker for 2021/2023 bills. Negative checks (no deposit cap, no interest or separate-account rule, no rent-increase notice statute, no late-fee cap or grace period) run twice against the complete section indexes of ch. 24 parts 1-4 and ch. 25 parts 1-2. 2025 session sweep: HB 444 and HB 810 enacted and effective (incorporated); HB 304, HB 277, HB 305, HB 306 died in committee; 69th Legislature adjourned, next regular session January 2027; no on-topic special-session activity.