A Montana sublease agreement is a legal document that allows a tenant to rent out their property to a new tenant, known as the subtenant. In this arrangement, the original tenant becomes the sublessor, and the new tenant takes on the role of the subtenant. For the sublease agreement to be valid, it must have the written permission of the original landlord.
It also holds both the actual tenant and the subtenant to the terms of the original lease agreement. The original tenant is liable if something is damaged or the subtenant fails to pay rent on time.
A sublessor must honor the terms of the sublease agreement (as well as the original lease) and follow all Montana laws regarding the eviction process, security deposits, and all other landlord-tenant matters.
Laws & Requirements
Sublease and Assignment Provision Laws: Montana Code Annotated 70-24-305
Landlord-Tenant Laws: Title 70, Chapter 24 of the Montana Code Annotated (Residential Landlord and Tenant Act of 1977)
Security Deposit Obligations: A sublessor must return the security deposit within 10 days if there are no damages and within 30 days if some of the deposit is being withheld for damages.
Notices: A sublessor must provide a subtenant with three days’ written notice to pay rent or leave. They must also provide 30 days’ written notice of their intent not to renew the sublease and/or original lease.
Permission to Sublet
Laws: Montana regulations allow tenants to sublet the property to a subtenant with the landlord’s permission.
Explicit Written Consent: If the original lease does not permit subletting, the tenant must obtain written consent from the landlord to allow the sublease.
Landlord’s Right to Deny: A landlord is allowed to screen a potential subtenant and can deny a tenant’s request to sublet the property, but the denial must be based on nondiscriminatory and lawful reasons.
Tax Obligations
Tax Rates
In Montana, a short-term rental (STR) is defined as a house or residence rented for a fee for 30 days or less. [1] The Montana Department of Revenue imposes both a sales tax and a use tax on short-term rentals. Additionally, individual counties and some cities may levy extra taxes and require permits or other compliance measures.
Montana short-term rental taxes include: [2]
- 4% state sales tax.
- 4% state use tax.
- County taxes (vary by county).
- City taxes (vary by city).
Sample
Below, you can download a Montana sublease agreement in PDF or Word format:
Related Documents
Rental Application
Assess if a subtenant meets your criteria for subletting a property.
