How long does a landlord have to return a security deposit upon lease termination?

A landlord is required to return a security deposit to a tenant within 30 days of the lease termination. This time frame is established by Montana law, specifically for residential leases. The 30-day period allows the landlord to carry out necessary inspections of the property, assess any damages beyond normal wear and tear, and calculate any deductions that may be applicable due to unpaid rent or necessary repairs caused by the tenant's actions.

This timeframe ensures that tenants receive their deposits in a timely manner while also giving landlords adequate time to evaluate the property condition post-lease. If a landlord fails to return the security deposit within this specified period without a valid reason, they could be subject to legal penalties or required to forfeit the right to withhold any portion of the deposit. Understanding this time frame is crucial for both landlords and tenants to maintain compliance with state regulations and to protect their rights regarding security deposits.