Montana Commercial Lease Agreement

Implied Covenant of Good Faith and Fair Dealing

• Montana recognizes the implied covenant of good faith and fair dealing, which requires honesty in fact and observance of reasonable commercial standards of fair dealing by both parties. 
• All conduct under this lease must adhere to prevailing trade standards.

Statutory Notice Periods

• If the premises are damaged and unusable for the tenant’s purposes, the tenant may terminate the lease within 90 days of damage by written notice to the landlord.
• The landlord shall promptly make repairs for minor damage at their own cost. The tenant isn’t required to pay rent while the premises are inoperable or unfit.
• If the tenant defaults on rent, the landlord must provide 15 days’ written notice for the tenant to cure before taking action. 
• For other lease defaults, the landlord must give 30 days written notice for the tenant to start and diligently continue correcting the default before the landlord can terminate the lease or pursue other remedies. 
• The landlord shall make reasonable efforts to mitigate damages.

Security Deposit

• Montana law doesn’t limit the amount a landlord may collect as a security deposit for a commercial lease. 
• Commercial landlords in Montana can combine multiple tenants’ security deposits into a single account. There’s no requirement to hold each tenant’s security deposit separately.
• Montana doesn’t obligate commercial landlords to hold security deposits in an interest-bearing account. Landlords aren’t required to pay any accrued interest when returning a commercial tenant’s security deposit. 

Disclosures

• Landlord information: The landlord must provide the tenant with the name and address of the property owner and manager. This information must be updated anytime there’s a change. The landlord may designate an authorized agent to serve notices, receive notices, and collect rent. 
• Mold disclosure: Montana doesn’t require mold disclosures, but the landlord must maintain the property to code standards. Any mold issues must be promptly addressed. Local jurisdictions may have additional mold disclosure rules.  
• Lead paint disclosure: For properties built before 1978, the landlord must disclose known lead-based paint hazards per federal law.  

Termination and Renewal

• If the lease term isn’t specified, it’s presumed renewable at the same terms unless one party gives notice of termination to the other at least as long before expiration as the length of the term itself, up to one (1) month.  
• Any renewal must be in a written agreement with the same formalities as the original lease.
• The landlord can lease state trust land for commercial purposes for up to 99 years via competitive bidding.