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Bill

Bill

LC 1921

Require the refund of certain residential lease application fees

2025 Regular Session

Montana bill would mandate landlords refund residential lease application fees to rejected applicants, reducing tenant costs but potentially limiting landlord cost recovery from screening processes.

(LC) Draft Ready for Delivery
#housing #landlordandtenant
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Bill Summary · LC 1921

Legislative bill overview

LC 1921 would require landlords to refund residential lease application fees to applicants who are not selected for a rental unit. The bill establishes consumer protections around the fees Montana landlords can charge prospective tenants during the application process.

Why is this important

Application fees can range from $25 to $100+ per application, and tenants often apply to multiple properties. This bill addresses whether landlords should retain these fees when applicants are rejected, affecting both tenant affordability and landlord cost-recovery practices in Montana's rental market.

Potential points of contention

  • Landlord cost concerns: Property managers argue application fees offset legitimate screening costs (background checks, credit reports, verification calls) regardless of outcome, and refund requirements could reduce their ability to recoup these expenses
  • Fee amount and reasonableness: Debate over whether the bill should cap application fees or require refunds only if fees exceed actual screening costs
  • Implementation clarity: Questions about refund timelines, exceptions (such as fees retained for applicants with falsified information), and whether this applies to all landlords or only larger operations

Compiled from official sources — confirm details with the bill’s official record.

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