Montana: Late Rent Fee Limits

What actually governs a late fee in Montana

Montana's Residential Landlord and Tenant Act, Mont. Code Ann. §§ 70-24-101
through 70-24-442, contains no numeric cap on a residential late fee, no
fee-free grace period, and no statutory rule fixing the fee's base or how often
it may accrue. Section 70-24-103 instead defines "rent" to include late fees
and other charges "as agreed on in the rental agreement," while § 70-24-201
allows lawful rent and payment terms in that agreement.

The agreement therefore supplies the amount, when the fee attaches, whether it
repeats, and whether it is flat or calculated from rent or an unpaid balance.
Montana defines a rental agreement to include written or oral agreements, so
the Act does not impose a separate signed-writing condition for the fee.

There is no dollar or percentage ceiling, but § 70-24-404 supplies a statutory
backstop: if a court finds a rental-agreement provision unconscionable, it may
refuse to enforce the agreement or enforce the remainder without that
provision. In an action on the rental agreement or arising under the Act,
§ 70-24-442 allows—but does not require—an award of reasonable attorney fees
and costs to the prevailing party.

What trips people up

The three-day nonpayment notice is not a late-fee grace period. Section
70-24-422(2) permits termination if rent remains unpaid for three days after
written notice of nonpayment and intent to terminate. It does not require a
landlord to wait three days before assessing an agreed late fee.

A security-deposit deduction rule does not create a fee cap. Section
70-25-201 permits deductions for unpaid rent, late charges, and penalties due
under lease provisions. That rule identifies possible deductions after a
tenancy; it supplies no maximum, grace period, or accrual formula for the
underlying late fee.

The $20-or-20% figure is for self-storage, not a home. Section 70-6-606(2)
treats $20 or 20% of monthly rent, whichever is greater, as a reasonable
self-storage late fee. It does not apply to an apartment, house, or other
ordinary residential dwelling.

Payment-method fees have a separate restriction. Under § 70-24-201(4), a
landlord may not add a fee merely because of the rent payment type, except to
recoup an electronic bank fee incurred for electronic payment. That rule does
not cap a fee charged because rent itself is late.

Common questions

What is the maximum residential late fee? Montana states no numeric
maximum. The agreement supplies the amount, subject to a court's power to
refuse an unconscionable provision.

Must the late fee be in a written lease? The fee must be agreed in the
rental agreement, but § 70-24-103 defines rental agreements to include written
or oral agreements. The Act states no separate written late-fee disclosure
requirement.

Can a late fee be charged every day? The Act does not prescribe a one-time
or recurring structure. Any daily or repeated charge must come from the
agreement and remains subject to unconscionability review.

Can a tenant recover attorney fees in a dispute? Possibly, but not
automatically. Section 70-24-442 says the prevailing party in an action on the
rental agreement or arising under the Act may be awarded reasonable attorney
fees, costs, and necessary disbursements.

Statutes and sources

• Mont. Code Ann. § 70-24-103(14), (16) — agreed late fees count as rent,
  and a rental agreement may be written or oral.

  "Rent" means all payments to be made to the landlord, including rent, late
  fees, or other charges as agreed on in the rental agreement ... "Rental
  agreement" means all agreements, written or oral ... embodying the terms
  and conditions concerning the use and occupancy of a dwelling unit and
  premises.

Official source: https://mca.legmt.gov/bills/mca/title_0700/chapter_0240/part_0010/section_0030/0700-0240-0010-0030.html (accessed 2026-07-20)
- Mont. Code Ann. § 70-24-201(1), (3)-(4) — agreement terms, rent timing,
and the payment-type-fee restriction.

A landlord and a tenant may include in a rental agreement terms and
conditions not prohibited by this chapter or other rule or law, including
rent ... Rent is payable without demand or notice at the time and place
agreed upon by the parties ... A landlord may not charge an additional fee
based on rent payment type except to recoup an electronic bank fee incurred
for electronic payment.

Official source: https://mca.legmt.gov/bills/mca/title_0700/chapter_0240/part_0020/section_0010/0700-0240-0020-0010.html (accessed 2026-07-20)
- Mont. Code Ann. § 70-24-404(1)(a), (3) — treatment of an unconscionable
rental-agreement provision.

if the court, as a matter of law, finds that ... a rental agreement or any
provision of the rental agreement is unconscionable, the court may refuse
to enforce the agreement or enforce the remainder of the agreement without
the unconscionable provision to avoid an unconscionable result

Official source: https://mca.legmt.gov/bills/mca/title_0700/chapter_0240/part_0040/section_0040/0700-0240-0040-0040.html (accessed 2026-07-20)
- Mont. Code Ann. § 70-24-422(2) — the separate nonpayment-termination
clock.

If rent is unpaid when due and the tenant fails to pay rent within 3 days
after written notice by the landlord of nonpayment and the landlord's
intention to terminate the rental agreement ... the landlord may terminate
the rental agreement.

Official source: https://mca.legmt.gov/bills/mca/title_0700/chapter_0240/part_0040/section_0220/0700-0240-0040-0220.html (accessed 2026-07-20)
- Mont. Code Ann. § 70-24-442 — discretionary prevailing-party fees and
costs.

In an action on a rental agreement or arising under this chapter,
reasonable attorney fees, together with costs and necessary disbursements,
may be awarded to the prevailing party notwithstanding an agreement to the
contrary.

Official source: https://mca.legmt.gov/bills/mca/title_0700/chapter_0240/part_0040/section_0420/0700-0240-0040-0420.html (accessed 2026-07-20)
- Mont. Code Ann. § 70-25-201(1), (4) — separate security-deposit
deduction rule.

A landlord ... may deduct from the security deposit ... unpaid rent, late
charges, utilities, penalties due under lease provisions, and other money
owing to the landlord at the time of deduction ...

Official source: https://mca.legmt.gov/bills/mca/title_0700/chapter_0250/part_0020/section_0010/0700-0250-0020-0010.html (accessed 2026-07-20)
- Mont. Code Ann. § 70-6-606(2) — separate self-storage safe harbor.

A late fee of $20 or 20% of the monthly rent, whichever is greater, is a
reasonable fee and may not be considered a penalty.

Official source: https://mca.legmt.gov/bills/mca/title_0700/chapter_0060/part_0060/section_0060/0700-0060-0060-0060.html (accessed 2026-07-20)