Managing Rentals7 min read

Montana Tenant Screening: What You Can (and Can't) Ask, Plus a System That Works

Montana lets you screen tenants thoroughly — but cross the wrong line and you're facing a fair housing complaint. Here's how to screen legally, effectively, and consistently.

Montana Property Guide·March 31, 2026

Montana Is Screening-Friendly — With Guardrails

Good news: Montana has relatively permissive tenant screening laws. No cap on application fees, no limit on security deposits, and you can run full background and credit checks.

Bad news: Fair housing violations carry serious consequences, and they're easier to trigger than most landlords realize. The key is having a system — not gut feelings — drive your decisions.

What You CAN Screen For

Montana landlords can legally evaluate applicants on:

Credit history and score — payment patterns, outstanding debt, bankruptcies
Rental history — previous landlord references, eviction records
Criminal background — convictions (with caveats, see below)
Income verification — pay stubs, tax returns, bank statements
Employment status — current employer, length of employment
Identity verification — government-issued ID

You can also set objective criteria:

Minimum income (industry standard: 3x monthly rent)
Minimum credit score
No evictions within a specific timeframe
No felony convictions within a specific timeframe
Positive references from previous landlords

What You CANNOT Ask or Consider

Montana's Human Rights Act (MCA § 49-2-305) protects these classes in housing:

Protected Class	You Cannot Ask About...
Race or color	Ethnicity, heritage, skin color
National origin	Country of birth, accent, citizenship status*
Religion	Faith, church attendance, religious practices
Sex	Gender, pregnancy, sexual orientation
Age	How old someone is (adults only — can't restrict to "young professionals")
Marital status	Married, single, divorced, domestic partners
Familial status	Whether they have children, are pregnant, or plan to have kids
Disability	Physical or mental conditions, need for accommodations

*Note: You can verify legal right to reside in the US, but cannot discriminate based on national origin.

The "I'm Not Asking, Just Observing" Trap

You don't have to ask a discriminatory question to violate fair housing. If your decisions show a pattern of favoring one group over another, that's enough for a complaint. A paper trail of objective criteria applied equally to everyone is your best defense.

Source: Montana ERD — Fair Housing, Montana Commerce — Fair Housing

Application Fees

Montana has no cap on application fees. However:

Application fees are non-refundable
You should charge only what it actually costs to run screening (typically $30–$75)
Charging excessive fees ($200+) may deter qualified applicants and attract legal scrutiny

The Screening Process: Step by Step

1. Create Written Criteria (Before You Advertise)

Before you list the property, write down your rental criteria:

Minimum credit score (e.g., 620+)
Minimum income (e.g., 3x monthly rent)
No evictions in past 5 years
No felony convictions in past 7 years
Positive references from 2 most recent landlords

This document is your proof that decisions are objective, not discriminatory.

2. Get Written Consent

Before running any background check, credit check, or contacting previous landlords, you must obtain the applicant's written consent. Include a clear consent/signature line on your rental application.

3. Run the Checks

Use a reputable tenant screening service that provides:

Credit report (TransUnion, Equifax, or Experian)
National eviction search
Criminal background check
Sex offender registry check

Services like TransUnion SmartMove, RentPrep, or TurboTenant handle the consent and compliance requirements for you.

4. Apply Criteria Consistently

Apply the same criteria to every applicant. If you reject Applicant A for a 580 credit score, you must reject Applicant B for a 580 credit score too — regardless of any other characteristic.

5. Provide Adverse Action Notice (If Denying)

If you deny an applicant based on their credit report, federal law (Fair Credit Reporting Act) requires you to provide:

The name and contact info of the credit bureau that provided the report
A statement that the bureau didn't make the decision (you did)
Notice of the applicant's right to dispute the report and get a free copy

6. Document Your Decision

Keep records showing:

The criteria you applied
The screening results
The reason for acceptance or denial

Retain these for at least 3 years. If a fair housing complaint is filed 18 months later, you want documentation — not memory.

Criminal Background: Handle With Care

You can consider criminal history in Montana, but blanket "no felons" policies are increasingly challenged under fair housing law. The HUD guidance recommends:

Consider the nature of the crime, not just its existence
Consider how much time has passed
Consider relevance to housing (drug manufacturing is relevant; a 20-year-old DUI probably isn't)
Apply the same standard to everyone

A nuanced policy ("No felony convictions for violent crimes or drug manufacturing within the past 7 years") is safer than a blanket ban.

Red Flags That Actually Matter

In my experience, these predict tenant quality better than credit scores:

Gaps in rental history with no explanation — Where were they living?
Previous landlords won't return calls — They'd rather not give a reference at all
Inconsistent employment/income documentation — Real income can be verified
Unwillingness to authorize a background check — What are they hiding?
Urgency to move in "today" — Usually means an eviction or conflict at the current place