What Is the Montana Lease Agreement
Montana Lease Agreement is a written contract signed by the person intending to lease commercial or residential property and the property owner. Tenant promises to pay a certain amount of rent to the landlord for using their commercial/residential property.
Before finalizing the property deal, the landlord will run a credit check on the tenant to ensure that they are in a stable financial position and can pay rent on time. The standard Montana lease agreement is considered valid for one year.
When Do You Need a Montana Lease Agreement?
Montana Lease is needed when two parties (landlord and tenant) decide to sign a deal concerning the residential or commercial property. The contract stipulates the rental terms that the tenant has to abide by. These terms include the parking space, monthly rental payment, utilities, late fees, and more.
The landlord can request the tenant to complete and submit the rental application before signing this agreement. If the landlord approves the rental application, the parties can form a legal deal. Basically, the agreement is drafted to protect the interest of the tenant and landlord. It ensures that the tenant looks after the property as per the contract’s term.
Inclusions in a Montana Lease Agreement
A standard Montana state lease agreement template contains the following terms
- Term: Under this section, the start and end date of the contract is specified.
- Name and Address: Name of the parties signing the contract and their contact information. It also includes the address of the property.
- Payment terms: Under this section, the total rent payment, security deposit, and separate payment for the utilities should be mentioned. You must also add a clause stating the late payment fee.
- Obligations: This section includes the duties of the tenant until the contract termination date.
- Description of the property
- Disclosures about the health and safety hazards
- Disclosures about hazardous materials like lead in paints, asbestos etc
- List of utilities that are paid for by the landlord
- List of utilities that the tenant must pay for by himself
- The time period within which the landlord must respond to calls by the tenant
- Restrictions on the use of the property
- Restrictions on the activities in the property
- Terms regarding pets and smoking
- Duration of the lease
- Compliance certificates from various departments
- Rights of inspection by the landlord
- Right of quiet possession
- Assignment and subletting
How to Draft the Montana Lease Agreement?
To draft a perfect Montana lease, including these terms in the contract:
- The legal name of the landlord and tenant
- The commencement and closing date
- Prepaid rent and the total rental amount the tenant has to pay every month
- Address of the property
- The clause stating all the restrictions
- The utilities the tenant has to pay for separately such as electricity bill, Wi-Fi, etc.
- The penalty for violating any clause
- Make sure that the agreement complies with your state’s landlord-tenant laws
- Late payment fees
- Rights of inspection
- Security deposits
- Type of lease
- Restricted activities on the rental property
Benefits of the Montana Lease Agreement
Pros
- The contract lays out all the obligations the tenant has to follow during the contract period. It helps them plan their use of the property accordingly.
- The contract ensures that the tenant uses your property without causing any damage or violating any clause.
- The landlord gets additional revenue through renting it out
- The tenant is assured of his right of quiet possession of the property
- The landlord can be assured of the safety of his property so that he gets it back as he gave it
- Compliance certificates show that the landlord has concern towards the tenant
Key Clauses in Montana Lease Agreement
- It specifies the utilities the tenant has to pay for.
- The late fee the tenant has to pay should they delay the rental payment.
- Total rental fee the tenant must pay every month.
- It includes the deposit clause specifying the security deposit amount.
- Policy on pets, redecoration and smoking
- Policy on sub-letting the premises
- Restriction on the activities that can be done in the house.
- Right of inspection of the landlord
- The schedule for payment of the rent and the mode of payment
What Happens in Case of Violation?
Should the tenant fail to abide by the mentioned terms and conditions, the contract will be terminated and the tenant will be subject to penalty. Failure of payment, inability to follow the clauses and misuse of the property can lead to contract violation. The parties may approach the court of law for restitution, specific performance or injunctive relief.
A lease agreement in the state of Montana is not very different from lease agreements in the other states. It only varies by disclosures. Having a lease agreement is beneficial for every party because it secures their rights.
[ Also Read: Month to Month Rental Agreement ]
Sample Montana Lease Agreement
You can download a Montana lease agreement pdf
