Require the refund of rental application fees

- 2025
69th Legislature 2025 HB 311
- 1 - Authorized Print Version – HB 311
ENROLLED BILL
AN ACT REQUIRING THE REFUND OF RESIDENTIAL RENTAL APPLICATION FEES; ALLOWING CERTAIN
COSTS TO BE DEDUCTED; PROVIDING FOR A CIVIL ACTION IF AN APPLICATION FEE IS
WRONGFULLY WITHHELD; AND PROVIDING AN APPLICABILITY DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Application fees -- refund -- deduction of costs. (1) A property manager of four or more
dwelling units that requires an application fee prior to the rental of a dwelling unit shall refund the application fee
within a reasonable period of time if the applicant does not become a party to a signed rental agreement for the
dwelling unit or if the applicant does not become a party to a rental agreement that has the same effect as if it
had been signed pursuant to 70-24-204. However, the property manager may deduct costs from the refund as
provided in subsection (2).
(2) If the application fee includes costs pertaining to specific services, the applicant must be given
written notice of the portions of the total application fee allocated to each cost at the time the application fee is
collected. If the applicant does not become a party to a rental agreement as provided in subsection (1), the
property manager may retain only the costs specified in the written notice for services actually performed and
shall refund the balance as provided in subsection (1). The property manager may not retain the cost of a
service that was not performed, even if the cost was specified in the written notice that was provided to the
applicant.
(3) A person who wrongfully withholds an application fee or any portion of an application fee is
liable in damages to the applicant in a civil action for an amount equal to the sum determined to have been
wrongfully withheld or deducted. Attorney fees may be awarded to the prevailing party at the discretion of the
court. The burden of proof of services rendered by the property manager pertaining to the application is on the
property manager.
- 2025
69th Legislature 2025 HB 311
- 2 - Authorized Print Version – HB 311
ENROLLED BILL
(4) For the purposes of this section, the following definitions apply:
(a) "Application fee" means the total amount an applicant shall pay to be considered for renting a
dwelling unit.
(b) "Cost" means the out-of-pocket expense to a property manager for a specific service in relation
to the application performed prior to approval or disapproval of a tenant, including but not limited to a credit
check. The term does not include a fee for the property manager's time or effort for arranging or performing the
service.
Section 2. Codification instruction. [Section 1] is intended to be codified as an integral part of Title
37, chapter 56, part 1, and the provisions of Title 37, chapter 56, part 1, apply to [section 1].
Section 3. Applicability. [This act] applies to an application fee collected by a property manager
from an applicant on or after [the effective date of this act].
- END -
I hereby certify that the within bill,
HB 311, originated in the House.
___________________________________________
Chief Clerk of the House
___________________________________________
Speaker of the House
Signed this _______________________________day
of____________________________________, 2025.
___________________________________________
President of the Senate
Signed this _______________________________day
of____________________________________, 2025.
HOUSE BILL NO. 311
INTRODUCED BY K. KORTUM, M. NIKOLAKAKOS, S. GIST, W. MCKAMEY, D. FERN, R. MINER, L.
BREWSTER, N. DURAM, J. FITZPATRICK, S. HOWELL, J. KARLEN, G. NIKOLAKAKOS, K. SULLIVAN, K.
BOGNER, S. ESSMANN
AN ACT REQUIRING THE REFUND OF RESIDENTIAL RENTAL APPLICATION FEES; ALLOWING CERTAIN
COSTS TO BE DEDUCTED; PROVIDING FOR A CIVIL ACTION IF AN APPLICATION FEE IS WRONGFULLY
WITHHELD; AND PROVIDING AN APPLICABILITY DATE.