What are the laws governing the return of tenants' security deposits?

In Montana, the laws governing the return of tenants’ security deposits are outlined in the Montana Residential Landlord and Tenant Act. Under this Act, when a tenant vacates a rental unit, and the tenant has met all the conditions of the rental agreement, the landlord must return the security deposit within 31 days of the tenant’s vacating the rental unit. The security deposit may only be used by the landlord to cover unpaid rent, damages to the property that were caused by the tenant, or other unpaid fees related to the tenancy. Any deductions that are made from the security deposit must be itemized in writing and provided to the tenant along with any amount of the security deposit that is being returned. The landlord is also required to provide the tenant with a forwarding address to which the tenant may send written requests for the return of their security deposit. The landlord is obligated to respond to the tenant’s written request within 45 days of the tenant vacating the property. If the landlord fails to properly return the security deposit, the tenant may bring a civil action in court to recover the return of the security deposit, and potentially other damages if it can be proven that the landlord acted in bad faith. A tenant may also file a complaint with the Montana Department of Justice if the landlord fails to return the security deposit.

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