Montana Renters Benefit from New Law Curbing Application Fees
In a significant win for renters, Montana’s Republican Governor Greg Gianforte has signed House Bill 311 into law, aimed at addressing excessive application fees for rental properties. The legislation, introduced by Democratic Rep. Kelly Kortum of Bozeman, mandates that property managers refund unused application fees, which can accumulate into hundreds, or even thousands, of dollars for prospective renters.
House Minority Leader Katie Sullivan, D-Missoula, hailed the bill as one of the most impactful policies for renters in the past four years. It received bipartisan support, passing with a vote of 68-29 in the House and 34-14 in the Senate. The initiative was born out of concerns regarding what Kortum called “predatory business practices” in the rental market.
Renting in Montana can be challenging, with an estimated 31% of households, or about 137,485 residents, currently renting. Among these, 22% earn at or below the median income. Applications often require fees ranging from $35 to $75 per person, essentially creating a "housing lottery," where many applicants pay but receive nothing in return.
Kortum emphasized the unfairness of charging fees for services not rendered, stating, “Why are they paying for a service they never receive?” The bill aims to make the search for rental housing more affordable and equitable, alleviating the financial strain on tenants who often find themselves in a competitive and costly market.
Sullivan affirmed that HB 311 will help end the exploitative fee practices, reinforcing that securing a place to live should not feel like a gamble. With this law, Montana is taking meaningful steps toward making housing more accessible for its residents.
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