Montana late fee laws for rent: no cap, but a rule on payment-type fees

What does Montana law allow in a rental agreement?

Section 70-24-201(1) lets a landlord and tenant include terms and conditions not prohibited by the chapter or other rule or law, including rent and the other provisions governing their rights and obligations. A late fee clause fits that description. Nothing in 70-24-201 names a cap or a waiting period for a late charge.

Section 70-24-202 lists provisions a rental agreement may not contain. The first is an agreement by a party to waive or forego rights or remedies under the chapter. A late fee clause cannot be used to make a tenant give up a right the chapter gives.

Can you charge extra for how the tenant pays?

Section 70-24-201(4) says a landlord may not charge an additional fee based on rent payment type, except to recoup an electronic bank fee incurred for electronic payment. The history shows an amendment in 2025.

Example a made-up owner in Billings accepts rent by bank transfer, and the owner's bank charges nothing for incoming transfers. A $10 "online payment fee" added to the tenant's ledger would be a fee based on payment type with no electronic bank fee to recoup, so it falls on the wrong side of subsection (4).

A late fee is a different thing. It depends on when the rent is paid, not on the method. Keep the two apart in your lease and on your ledger so a late fee is never really a payment-method charge.

How long does a tenant have after a nonpayment notice?

Section 70-24-422(2) says that if rent is unpaid when due and the tenant fails to pay within three days after written notice of nonpayment and the landlord's intention to terminate if the rent is not paid within that period, the landlord may terminate the rental agreement. The notice has to be delivered under the chapter's notice rules in 70-24-108. For the whole eviction path in the state, see your own attorney or the court's forms.

Can a deposit cover unpaid late charges?

Yes. Under 70-25-201(1), a landlord may deduct from the security deposit a sum equal to unpaid rent, late charges, utilities, penalties due under lease provisions and other money owing at the time of deduction. That makes a late charge in the lease worth writing down clearly: if it is in the lease, it is on the list of what the deposit can cover at move-out, subject to the rest of the deposit rules.

What should a Montana lease and ledger show?

Start with the due date and the late fee amount on the same lease page, so the tenant sees both together. Add a plain line saying how rent can be paid, and confirm that no extra charge attaches to any payment method unless it matches the electronic bank fee exception.

On the ledger, keep four kinds of line apart: rent, late fees, deposit and anything else. At move-out, the deposit rule in 70-25-201 lists unpaid rent and late charges as separate items, so a ledger that already separates them makes the itemized list easy to build. Keep the dated notice of nonpayment with the ledger, too, since the three-day period runs from the written notice.

How DoorKeeping handles it in Montana

DoorKeeping posts the late fee you approved from your lease as its own line, and tenants pay your own bank by transfer or Zelle with no payment fee from DoorKeeping, so there is no payment-type charge to add. Rent and payments stay in your own bank accounts. DoorKeeping never holds your money and sends a payment only when you approve it. This is general information, not legal advice. Confirm your lease with your own Montana attorney.

Sources

1. Montana Code Annotated 70-24-201, Rental agreement, terms and conditions (Montana Legislature), read Oct 30, 2026
2. Montana Code Annotated 70-24-202, Prohibited provisions in rental agreements (Montana Legislature), read Oct 30, 2026
3. Montana Code Annotated 70-24-422, Noncompliance of tenant generally (Montana Legislature), read Oct 30, 2026
4. Montana Code Annotated 70-25-201, Security deposit, deductions authorized (Montana Legislature), read Oct 30, 2026

Questions

Is there a maximum late fee in Montana?

The sections read here, 70-24-201 and 70-24-422, name no dollar or percentage cap on late fees.

Can a Montana landlord charge a fee for paying online?

Section 70-24-201(4) bars an additional fee based on payment type, except to recoup an electronic bank fee incurred for electronic payment.

How many days does a Montana tenant have to pay after notice?

Three days after written notice of nonpayment and of the landlord's intention to terminate, under 70-24-422(2).