Principles of Montana Residential Landlord Tenant Law 2018

© Principles of Montana Residential Landlord & Tenant Law 2018 Klaus D. Sitte forrentmt@yahoo. com klaus. sitte@umontana. edu 8/28/2018 1

So what do you know? n n n Tenants who breach rental agreements lose rights under the MRLTA. Once proper notice is provided, a landlord may limit access to the premises by a nonpaying tenant until rent is fully paid. A landlord may charge a non-refundable cleaning fee in addition to a security deposit. A landlord may require a tenant to have carpeting professionally cleaned as a condition for returning the security deposit. When a landlord accepts a tenant’s rent, any breach by the tenant is considered waived by law. The contents of a lease is irrelevant since the MRLTA governs all relationships between landlords & tenants. 6/4/2021 2

The Disclaimer ØThe contents of this outline or of this presentation are not legal advice. ØThis material will not substitute for competent, timely legal advice related to a specific factual situation. ØThere is no guarantee that the contents of FOR RENT or this outline is current and up-to-date. ØAlways seek the advice of a Montana lawyer familiar with the Montana Residential Landlord Tenant Act, the Montana Residential Tenants Security Deposit Act , the Montana Residential Mobile Home Lots Rental Act and the Montana Supreme Court cases affecting landlord/tenant law. 6/4/2021 3

What we’ll NOT cover: n Commercial nincluding tenancies: storage sheds n Discrimination n too 6/4/2021 issues: complex for this session 4

What we will cover: n RESIDENTIAL Tenant/Landlord Law n In MONTANA n No other state law n Nothing in federal housing law n Nothing in federal court 6/4/2021 5

Purpose of MRLTA Ø Recognizes that parties need each other Ø Establishes contractual and legal relationship Ø Avoids physical controversies Ø Applies to reasonable people 6/4/2021 6

What kind of law is Landlord/Tenant law? n Property law? n Contract law? n Consumer law? 6/4/2021 7

Sources of Montana Law n Sections 70 -24 -101 through 442, M. C. A. : �the MRLTA: 80% n Sections 70 -25 -101 through 206, M. C. A. : �the MRTSDA: 5% n Sections 70 -33 -101 through 434, M. C. A: n n n the MRMHLRA: 10% Sections 70 -27 -101 through 212, M. C. A: does NOT apply – UNLAWFUL DETAINER Montana Supreme Court Cases: �cases: 3%: see outline 6/4/2021 8

FOR RENT The Complete Montana Landlord and Tenant Guide By Klaus D. Sitte 6/4/2021 9

The Basics: where/when does the MRLTA apply? n Covers ALL relationships between residential landlords and tenants 6/4/2021 10

Highlights of the MRLTA n Good Faith: obligation in ALL MRLTA transactions: n. An 6/4/2021 “in court” example : 11

Prohibited Provisions What cannot be included: n Consequences of improper inclusion: n n Unenforceability n Attorneys fees n Summers v. Crestview Apartments 6/4/2021 12

Landlord Obligations to Maintain the Premises n Common sense requirements n Warranty of Habitability n Conditions upon which we can agree: 6/4/2021 13

6/4/2021 14

6/4/2021 15

6/4/2021 16

Landlord Obligations to Maintain the Premises n Examples: n Corrigan n Mathes n Bush 6/4/2021 v. Janney v. Adams & Mac. Ruder v. Kammerer 17

DRAW HERE! 6/4/2021 18

Tenant's duties to maintain premises n Common sense requirements Responsibility for guests Use the premises as intended n A tenant may not engage or knowingly allow n n n n 6/4/2021 criminal production or manufacture operation of an unlawful clandestine laboratory gang-related activities, criminal production or manufacture of dangerous drugs any activity that is otherwise prohibited by law. 19

Landlord can make Rules n n n Fairness is fundamental Reasonable relationship to purpose Different for mobile home courts Rules & Terms of Rental Agreements: Poor rules create, not solve, problems for landlords & for tenants, as well as Courts of Limited Jurisdiction 6/4/2021 20

Examples of Inappropriate Rules n n No children's toys or adult projects shall be left outside of storage areas when not in use At no time under any circumstances shall any ball, Frisbee, or any other object be thrown in or around the apartments, apartment property or parking lots. 6/4/2021 21

Examples of Inappropriate Rules n n Children must be adequately supervised by parents at all times. Child welfare laws will be enforced and violations reported as necessary. The use of furniture on your patio, porch or yard is prohibited unless the outdoor furniture is approved, in advance, by the management. 6/4/2021 22

Examples of Inappropriate Rules n n When you are given notice to move, you shall move out as specified. If you are not moved, criminal proceedings will be filed. In the event you are evicted, you will not be allowed access to your mobile home while awaiting it’s removal. 6/4/2021 23

Access to the premises n n n 24 hour notice Reasonable times of day Exceptions for emergencies Unlawful entry & unreasonable lawful entry: examples Consequences for refusal to allow access 6/4/2021 24

Draw here! 6/4/2021 25

Noncompliance by the landlord: tenant’s options n n n terminate within 30 days, if breach not remedied within 14 days, unless remediable by repairs or damages terminate within 14 days, if same breach occurred in past 6 months "repair and deduct" 6/4/2021 26

Failure to supply essential services n Remedies available to tenant n n procure own services and deduct cost recover damages procure substitute housing and pay no rent Important: Tenant MUST give notice and landlord must have REASONABLE opportunity to correct 6/4/2021 27

Landlord's remedies for tenant's non-compliance: n n 14 days written notice for breach plus opportunity to remedy 5 days notice, if breach occurred within 6 months 3 days notice permitted ONLY for failure to pay rent, unauthorized pet or unauthorized person: 3 days notice for destroying, damaging, impairing or removing part of premise 6/4/2021 28

Termination of Rental Agreement n n n Ordinary termination Termination after non-compliance Action for possession n 6/4/2021 Procedural court action n Complaint & Answer: n Answer within 10 days : 70 -24 -429 n Heard within 5 business days : 70 -24427 29

Retaliatory Conduct Prohibited n n complaint of housing code violation complaint in writing of landlord's duty to maintain premises become a tenant's union member general argument against retaliation: n 6/4/2021 Can a tenancy be terminated for the wrong reasons? 30

Security Deposits: n n Large area of problems for JP’s Problems persist since adoption of MRLTA l Definitions – cleaning expenses – damage – security deposit 6/4/2021 31

No waivers allowed n n Oral or written Attempted or actual: invalid 6/4/2021 32

Authorized Sec. Dep. Deductions n Amount equal to n n No cyclical cleaning charges No deductions until n n n damage caused by tenant any unpaid rent after tenant has notice of what needs to be cleaned plus 24 hours to clean No other deductions allowed! 6/4/2021 33

Damage List Requirements n n n WRITTEN list of rent due, utilities, damages and cleaning Within 30 days Include payment of the difference Mailed list to last known address of tenant "speedy" return of deposit Forfeiture of ALL rights to withhold for failure to comply 6/4/2021 34

Wrongful Withholding n n liable for the amount wrongfully withheld + attorney's fees no court action to recover permitted until: n Denial of wrongfully withholding n 30 days after termination or surrender n or 10 days after indication of no amount due or cleaning required 6/4/2021 35

Previous Condition Statement n present condition at beginning of lease + copy of last tenant's damage statement, if requested n Failure bars landlord from collecting ANY amount n Court action: like any other complaint in court 6/4/2021 36

Montana Supreme Court Cases: n Bohm v. Dunphy n Welsh v. Roehm et al. n Rennick v. Hoover n Corrigan v. Janney 6/4/2021 37

Cases continued n Roy v. Neibauer n Busch v. Kammerer n Limberhand v. Big Ditch Co. n 6/4/2021 Rookhuizen v. Blain's Mobile Home 38 Court

Cases continued n Mathes, et al. v. Adams and Magruder n Solem, et al. v. Chilcote n Swenson n 6/4/2021 Calder v. Janke v. Anderson 39

Cases continued n Whalen v. Taylor n Kunst v. Pass n Edie v. Gray n Summers v. Crestview Apartments 6/4/2021 40