Montana First-Time Landlord Checklist: 15 Things to Do Before Your First Tenant

Before We Start

You bought (or are about to buy) a rental property in Montana. Congratulations — you've made a smart move in a landlord-friendly state with no rent control, low property taxes, and strong rental demand.

But between owning a property and collecting your first rent check, there are 15 critical steps. Skip any of them, and you're gambling with your investment.

This is your uncle laying it all out. Do these in order.

Now let's break each one down.

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Step 1: Form an LLC ($35)

Montana has the cheapest LLC formation in the country. For $35, you create a legal wall between your rental property and your personal assets (home, savings, retirement accounts).

How: File Articles of Organization online at sosmt.gov/business. Takes 3–5 business days to process.

Why it matters: If a tenant sues you — slip and fall, habitability claim, whatever — they can only go after the LLC's assets, not yours personally.

Full walkthrough: Montana Rental Property LLC: $35 to Form

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Step 2: Get an EIN (Free, 5 Minutes)

An Employer Identification Number is your LLC's Social Security number. You need it for:

• Opening a business bank account
• Filing taxes
• Paying contractors (if you ever issue a 1099)

How: Apply free at irs.gov/ein. Online application takes 5 minutes.

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Step 3: Open a Business Bank Account

Take your Articles of Organization and EIN to any bank and open a dedicated checking account. Every dollar of rental income goes in. Every rental expense comes out.

Why: If you mix personal and rental money, a court can "pierce the corporate veil" — meaning your LLC protection disappears. Plus, separate accounts make tax time trivially easy.

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Step 4: Get Landlord Insurance

You need a DP-3 dwelling fire policy (not a standard homeowner's policy — those don't cover rental properties).

Cover at minimum:

• Dwelling: Reconstruction cost of the structure
• Liability: $300,000–$500,000 minimum
• Loss of income: 12 months of rent replacement

Montana-specific risks to ensure you're covered for: wildfire, freeze damage, hail.

Expect to pay $1,200–$2,400/year for a standard Montana rental property policy.

Full guide: Montana Landlord Insurance: What You Actually Need

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Step 5: Learn Montana Landlord-Tenant Law

Before you advertise, screen, or sign anything — understand the rules. The Montana Landlord Rights and Responsibilities Handbook is free, published by the state, and covers everything.

Key things to know:

• Security deposit return timelines (10 days full refund / 30 days with deductions)
• Required notice periods (3 days nonpayment, 14 days violation, 30 days no-cause)
• Your maintenance obligations (14 days for standard repairs)
• Fair housing protected classes
• What constitutes an illegal self-help eviction

Our Montana Law guides cover each topic in detail — start with the security deposit guide and the eviction process.

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Step 6: Set Up Property Management Software

Don't start with spreadsheets and text messages. Set up a proper system from day one — it's exponentially harder to organize retroactively.

Your software should handle:

• Online rent collection with automatic reminders
• Maintenance request tracking
• Lease storage and e-signatures
• Financial reporting for taxes
• Tenant communication logs

Our recommendation: Rezides ($19/month for up to 2 properties) — it's built in Montana, includes everything in one platform, and has no per-unit fees. If you want free: TurboTenant covers basics for a single unit.

Full comparison: Best Property Management Software for Montana Landlords

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Step 7: Prepare Your Lease Agreement

Montana requires 5 specific disclosures in every lease:

1. Move-in condition statement (MCA § 70-25-206)
2. Lead paint disclosure (pre-1978 buildings, federal law)
3. Meth contamination (if the property has a prior contamination history)
4. Owner/agent identification (who the tenant contacts and serves legal documents to)
5. Nonrefundable fees (must be explicitly labeled as nonrefundable)

Beyond disclosures, your lease should clearly state: rent amount, due date, late fee structure, security deposit amount, maintenance responsibilities, pet policy, and termination procedures.

Full guide: Montana Lease Agreement: Required Disclosures

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Step 8: Set the Right Rent Price

Price too high → vacancy (a vacant month costs you more than a $50/month discount). Price too low → you leave money on the table for years.

How to research:

• Check Zillow Rentals for comparable listings in your area
• Look at Rentometer for median rent data
• Search Facebook Marketplace and Craigslist for local listings
• Talk to local property managers — they know actual market rates

Montana median rents (2026):

• Bozeman: $2,100–$2,200/month
• Missoula: $1,700–$1,900/month
• Billings: $1,400–$1,600/month
• Great Falls: $1,200–$1,400/month
• Butte: $1,100–$1,300/month

Source: Zillow Rental Manager, local property management surveys

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Step 9: Make the Property Rent-Ready

Before marketing, the property must meet Montana's implied warranty of habitability (MCA § 70-24-303):

• Working plumbing, heating, and electrical
• Weatherproofing (critical in Montana winters)
• Working smoke and carbon monoxide detectors
• Functional locks on all exterior doors
• No health or safety hazards

Beyond legal minimum:

• Fresh paint and clean carpets make a huge difference in attracting quality tenants
• Professional cleaning ($200–$400) pays for itself in faster rent-up
• Fix deferred maintenance now — it's cheaper than emergency repairs later

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Step 10: Market the Property

Photos matter more than anything. Take bright, wide-angle photos of every room during daylight. Clear the space. Make it look spacious and clean.

Where to list:

• Zillow / Trulia / HotPads (syndicated through most PM software)
• Apartments.com
• Facebook Marketplace (huge in Montana)
• Craigslist (still active in Montana markets)
• Your property management platform's built-in listing pages

Tip: Some property management platforms (including Rezides) include built-in listing pages that syndicate to rental sites — potentially replacing paid Zillow listings and saving $30–$100+/month.

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Step 11: Screen Tenants Properly

This is where most new landlords make their biggest mistake: they rush it, they trust gut feelings, or they unknowingly violate fair housing law.

Screen every applicant consistently using the same criteria:

• Credit report (look for patterns, not just the score)
• Criminal background check
• Eviction history
• Employment and income verification (2.5–3x rent minimum)
• Landlord references (call previous landlords — current landlords may lie to get rid of a bad tenant)

Fair housing law: You CANNOT reject applicants based on race, color, national origin, religion, sex, familial status, disability, marital status, creed, or age. Apply the same screening criteria to everyone.

Full guide: Montana Tenant Screening: Legal and Smart Practices

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Step 12: Sign the Lease and Collect Deposits

Once you've selected your tenant:

1. Walk through the entire lease together — explain key terms
2. Both parties sign (e-signatures are legally valid in Montana)
3. Collect the security deposit and first month's rent
4. Provide copies of all signed documents to the tenant

Security deposit tip: Montana has no cap on deposit amounts, but market standard is one month's rent. Collecting more may scare away good tenants.

Full guide: Montana Security Deposit Law

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Step 13: Do a Move-In Inspection

Walk through the property WITH the tenant before they move in. Document every existing scratch, stain, dent, and issue.

How:

• Use a standardized checklist (room by room)
• Take timestamped photos of every surface
• Note the condition of appliances, fixtures, floors, walls, windows
• Both you and tenant sign the completed checklist
• Keep your copy forever

This protects you when the tenant moves out and claims "that damage was there when I moved in." Without documentation, you lose the dispute — and the deposit.

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Step 14: Set Up Maintenance Systems

Give your tenant a clear, documented way to submit maintenance requests. This protects you legally (Montana requires response within 14 days for standard repairs) and prevents small problems from becoming expensive emergencies.

Build your contractor list now:

• Plumber (emergency and routine)
• Electrician
• HVAC technician (critical in Montana — furnace failure in January is an emergency)
• General handyperson
• Snow removal (if landlord-responsible)

Get multiple quotes before you need them urgently. After-hours emergency rates in Montana run 50–100% higher than standard rates.

Full guide: Montana Landlord Maintenance Requirements

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Step 15: Plan for Taxes From Day One

Every expense you track is money you keep. Start recording from the first dollar spent.

Deductible expenses include:

• Mortgage interest
• Property taxes
• Insurance premiums
• Repairs and maintenance
• Property management software fees
• Travel to/from the property (mileage deduction)
• Depreciation (the building, not the land)
• Professional services (accountant, attorney)
• Advertising and listing fees

Use software from day one. Platforms like Rezides track income and expenses automatically and generate reports for your accountant. Retroactively categorizing a year's worth of transactions is miserable — trust me.

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The Mistakes That Cost New Landlords the Most

Every item on this checklist exists to prevent one of these scenarios. Spend a weekend getting set up properly — it's the cheapest investment you'll ever make.

Related Reading

• Montana Rental Property LLC: $35 to Form — Step 1 deep dive
• Montana Landlord Insurance Guide — Step 4 deep dive
• Montana Lease Agreement: Required Disclosures — Step 7 deep dive
• Montana Tenant Screening: Legal Guide — Step 11 deep dive
• Montana Security Deposit Law — Step 12 deep dive
• Best Property Management Software for Montana — Step 6 comparison
• How to Collect Rent in Montana — Post-checklist guide to getting paid

Resources

• Montana Landlord Rights Handbook (PDF) — Free from Montana Public Regulation Commission
• Montana Secretary of State — Business Filing — LLC formation
• IRS EIN Application
• MontPIRG Tenant-Landlord Guide — Free legal guides
• Rezides — Property Management Platform — All-in-one software built for Montana landlords