It’s tax season! If you started a rental business this year, you’ll want to know how to deduct all your expenses. Or perhaps you’re researching how to start a rental business and need to know how taxes work.

This guide explains how to deduct startup expenses, what the tax rules are for expenses after you start the business, and changes to the 2018 tax laws that affect landlords.

Rental property startup expenses

Use the $50K rule.

Keep startup expenses under $50,000. You can deduct $5,000 the first year and amortize the rest over the next 15 years. Above that amount, the first year deduction becomes less and less.

The $50,000 limit is easy to meet for most rental businesses. But it can be exceeded with a BRRR—buy, renovate, rent, refinance. That renovation can certainly add up.

What expenses can be deducted during the startup phase?

The “startup” phase is before the unit is rented and no income is coming in. Any expenses that incur during this period are considered “startup” expenses.

These expenditures can include:

• Repairs that get the unit or property ready to rent
• Office expenses like office supplies, phone service, or office space
• Time related to researching rental properties
• Pre move-in rental expenses such as landscaping, handyman, cleaners, or leasing agent
• Any business permit or license fees
• Fees for attorneys, accountants, property managers, or other professional services

When starting up a rental business, try to keep these expenses under $50,000. Do this by holding off on items that can be purchased after the place is rented. Once it is rented, you can deduct your expenses fully each year.

Tax write-offs for rental businesses

Each year, landlords can deduct many of their expenses related to their rental business.

Related: How to track property expenses and streamline taxes

What can landlords deduct on their taxes?

As a landlord, you can deduct many expenses on your taxes. Keep all your receipts and use a CPA (certified public account) to make sure you don’t miss a write-off. Each one counts!

• Interest on the mortgage
• Depreciation
• Repairs
• Personal property used in the rental or office space
• Travel to and from the rental—including gas, upkeep, and wear and tear
• Contractor costs for repairmen, property managers, leasing agents, cleaners, or handymen
• Insurance
• Professional services such as lawyers and accountants

How does the 2018 tax law affect landlords?

Landlords benefited from the 2018 tax law.

An updated pass-through law lets landlords “pass-through” the profits from their rental property to their personal tax rate (IRC Sec. 199A). If you make $30,000 in profits on your rental properties, for example, and your personal tax bracket is 24%, you would pay $7,200 in taxes.

If your rental business qualifies as a business, now through 2026, you can deduct 20% of your rental income plus expenses. From the previous example, if you make a profit of $30,000 from your rental properties, you can deduct 20% from your profit. This brings your taxable income to $24,000. If your tax bracket is 24%, you now pay $5,760 in taxes, saving $1,440. Be sure to ask your CPA if you qualify for this bonus deduction.

Conclusion

The updated 2018 tax law benefits landlords. Make sure you get all the new deductions available to you. Find a tax accountant that understands taxes for landlords. The new tax law is complicated, so it’s time to bring in the experts to get your landlord deductions right.

It’s human nature to gravitate toward things we like.

So what you think makes a rental property attractive will probably appeal to other like-minded people. But you could be limiting your market by only doing that.

When you have a rental property, it’s best to make that property appealing to the greatest number of potential renters—people that span all generations—not just millennials or baby boomers, for example.

Landlords need to appeal to renters across multiple generations.

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The good news is that appealing to one type of renter doesn’t have to mean alienating other demographics. Renters across every generation will likely be attracted to the same features in a rental.

The best way to start increasing the appeal of your rental units is by finding the commonalities most of your prospective tenants share. The 2017 “Renter Preferences Report” from the National Multifamily Housing Council is generated from survey responses by more than a quarter of a million apartment renters around the country, and based on the findings, here’s how to ensure you’re casting the widest possible net:

1. Focus on the essentials

For the most part, renters want the same basics. Air conditioning and access to high-speed internet made the top of the list, with 94 percent and 93 percent interest, respectively. In fact, 92 percent of respondents said they wouldn’t lease a unit without air conditioning. Many renters are also interested in reliable cell phone reception (92 percent), secure parking (88 percent), and secure access to amenities (84 percent).

By starting with these basic features that you know renters want, you can broaden your appeal and attract as many applicants as possible.

Related: Top 10 Amenities Renters Can’t Resist

2. Adopt useful technologies

Adoption of home automation technology has exploded in recent years; approximately one-third of U.S. broadband households own at least one connected device. Home automation adoption among renters, however, has been below the national average because of the complexity of choosing, installing, and maintaining a home automation system in a rental home. Take this opportunity to install home automation solutions that increase renters’ safety, savings, and convenience.

• Smart locks prevent the need to rekey after each renter, and they improve safety by allowing renters or landlords to issue unique access codes that show them who was in a rental unit and when.
• Exterior video cameras, such as doorbell or driveway cameras, let residents keep an eye on their home from the comfort of their couch … or halfway around the world.
• Smart thermostats can improve savings by lowering energy costs when a unit is unoccupied.
• Water sensors can alert you to flooding before unwanted water has the chance to wreak havoc.
• Smart lights increase convenience and lower bills by turning off when rooms are vacant.
• Voice assistants are appealing to all generations because they make it easy to control other smart home features.

3. Pick a good location

Location is key for any resident when they’re choosing a new home. Suburbs no longer hold the same appeal they once did; renters of all ages want to be closer to the action, where restaurants and nightlife are convenient and walkable.

4. Provide maintenance-free living

People of all ages want to live maintenance-free. In fact, one of the biggest appeals of renting is that landlords take care of upkeep and maintenance—from unclogging toilets to repairing broken appliances. Landlords who can respond to maintenance requests quickly and efficiently will attract great tenants.

The bottom line

The rental market is growing and becoming increasingly multi-generational. Millennials may represent the majority of the rental market, but a winning strategy is one that increases the appeal of your properties for all renters, from Baby Boomers to Gen Z. Checking the essential boxes is the most important step you can take—from there, introduce the right technologies in the right locations, and you’ll have renters lining up to view your property.

When I became an accidental landlord in 2011, all I knew for sure was that I needed a tenant, and fast.

Over the years, I have learned how to manage my properties through systems and processes that practically automate all landlord responsibilities. Since then, I like to say “life’s a beach” . . . or at least that’s true for my life as an independent landlord. Today, I’ll share my landlord automation secrets.

Step 1: Finding a tenant

The first thing I do with my rentals is to take great pictures that showcase the properties and surrounding towns. I write ads that help prospective tenants see themselves in that environment.

Related: How to Write an Attractive Property Listing in 8 Steps

From there, I create a Google Drive folder and put photos and ad descriptions in it as well as a Google calendar for showings.

This is where the automation comes in.

• Post your ad through syndication sites like Apartments.com and Cozy’s Property Listing portal.
• Use an app like Calendly to automate scheduling showings, which populates on your Google Calendar.
• If you want, you can even automate showings by using smart technology like Rently that allows prospects to schedule the showing from their smartphone and open the door for them. I wouldn’t recommend doing this one though if there are current tenants. Also, there is no replacement for meeting a prospective tenant in person.
• The rental application can be done online for free with Cozy’s rental application. The application includes a background and credit check, which is always recommended.

Step 2: Set up lease and rent collection

Creating a lease and rent collection system is the most important step. If your lease isn’t legal or your payments aren’t automated, that is potential money out of your pocket.

Have an attorney create your first lease, ensuring that it is compliant with your local area.  This lease can be customized for all other tenants. So, it is a one-time cost that will save you big money throughout the life of your rental.

• Use DocuSign to have the tenant sign the lease and store on Google Drive or your Cozy portal, providing access to your new tenant.
• Set-up automatic rent collection with Cozy’s rental payment portal. It’s free for both the landlord and tenant as long as they pay with an ACH. A bonus: Cozy automates late payments.

Related:  The landlord’s guide to rent collection

Step 3: Move-in checklist

Think of a new tenant moving in like a new employee starting a job. There is an onboarding process.

• Start with a move-in inspection with the tenant. Have the tenant sign it. This will be gold when the lease is up if there are any issues. You’ll have proof the tenant agreed the unit met their expectations. On the other side, if an issue needs to be resolved, the tenant can fill out a maintenance request, and the entire process is tracked.
• You can track any tenant onboarding and maintenance expenses for tax purposes and write them off during tax season using the landlord portal.
• Build a small team of contractors that you can rely on. You will need a handyman and a cleaning crew for maintenance and turnover needs. Having this team in place from the beginning saves you time throughout the lifetime of the rental.

Related:  The perfect tenant move-in package

By taking a small amount of time upfront to set up systems, processes, and automation, being a landlord becomes much easier. While landlords jest that owning rentals are anything but passive income, it can be much more passive with a plan in place.

This article summarizes some key Wyoming Landlord-Tenant laws applicable to residential rental units.

We’ve used the Official State Statutes and other online sources cited below to research this information and it should be a good starting point in learning about the law.

With that said, our summary is not intended to be exhaustive or a substitute for qualified legal advice. Laws and statutes are always subject to change, and may even vary from county to county or city to city.

You are responsible for performing your own research and complying with all laws applicable to your unique situation.

If you have legal questions or concerns, we recommend consulting with the appropriate government agencies and/or a qualified lawyer in your area. Your local or state bar association may have a referral service that can help you find a lawyer with experience in landlord-tenant law.

Official Rules, Regulations, and Guide

• Wyo. Stat. Title 1, Chapter 21, Article 10: Forcible Entry and Detainer
• Wyo. Stat. Title 1, Chapter 21, Article 12: Residential Rental Property
• Wyo. Stat. Title 1, Chapter 21, Article 13: Wyoming Safe Homes Act
• Landlord Tenant Information – University of Wyoming

Details

Security Deposit:

• Security Deposit Maximum: No statute.
• Security Deposit Interest: No statute.
• Separate Security Deposit Bank Account: No statute.
• Non-Refundable Fees: There is no statute governing what sort of non-refundable fees a landlord can charge a tenant. However, if there are non-refundable fees, the rental agreement must state whether any portion of the security deposit is non-refundable. The landlord must also given written notice regarding the non-refundable fees included in the security deposit when the tenant pays the deposit (Wyo. Stat. § 1-21-1207).
• Deadline for Returning Security Deposit: 30 days after the termination of the rental agreement or 15 days after the landlord receives the tenant’s new mailing address, whichever is “later.” If the rental unit has been damaged beyond normal wear and tear by the tenant, the period to return the deposit is extended by an additional 30 days (Wyo. Stat. § 1-21-1208(a)). Utility deposits must be repaid within 10 days of the tenant proving that all utility charges have been paid. For information regarding deadlines for when such proof is not shown and when the landlord must make utility payments, see statute. (Wyo. Stat. § 1-21-1208(b)).
• Permitted Uses of the Deposit: Landlords may use a portion or entirety of the security deposit to pay for past due rent, damages made by the tenant beyond normal wear and tear, cleaning costs, “and to other costs provided by any contract.” (Wyo. Stat. § 1-21-1208(a)).
• Security Deposit can be Withheld: Yes. (Wyo. Stat. § 1-21-1208(a)).
• Require Written Description/Itemized List of Damages and Charges: Yes (Wyo. Stat. § 1-21-1208(a)).
• Record Keeping of Deposit Withholdings: The landlord must provide an itemized list of deposit withholdings and mail it to the tenant along with the security deposit (Wyo. Stat. § 1-21-1208(a)).
• Failure to Comply: Tenants may recover the full amount of the security deposit and court costs if the security and utility deposits are not return within the deadlines set in statute. (Wyo. Stat. § 1-21-1208(c)).

Lease, Rent & Fees:

• Rent is Due: No statute.
• Payment Methods: No statute.
• Rent Increase Notice: No statute.
• Late Fees: No statute.
• Application Fees: No statute.
• Prepaid Rent: No statute.
• Returned Check Fees: Landlords can charge a fee not to exceed $30 (Wyo. Stat. § 1-1-115(b)).
• Tenant Allowed to Withhold Rent for Failure to Provide Essential Services (Water, Heat, etc.): No. Tenants are prohibited from withholding rent, for any reason, under Wyoming law. If the tenant does withhold rent, the landlord is legally allowed to initiate eviction proceedings. If any essential services are cut off or repairs need to be made to the unit, the tenant must notify the landlord of the problem, via writing, and allow the landlord “reasonable time” to make the repair. Tenants must be current on their rent payments in order to make such requests. The landlord has the legal right to refuse to make the repair and dispute the tenant’s claim. For more information, see the statute (Wyo. Stat. §§ 1-21-1203).
• Tenant Allowed to Repair and Deduct Rent: Tenants are allowed to make repairs but they cannot deduct rent. The only situations in which a tenant may make repairs is after the tenant has notified the landlord of the needed repair and “reasonable time” has passed since the notification. The tenant can also send the landlord a “notice to repair or correct condition” demanding the repairs be made.  The renter may also sue the landlord in civil court and be “awarded costs, damages and affirmative relief. For details on the details to include in the notice, see the statute (Wyo. Stat. § 1-21-1206).
• Landlord Allowed to Recover Court and Attorney’s Fees: Yes (Wyo. Stat. § 1-21-1211(b)).
• Landlord Must Make a Reasonable Attempt to Mitigate Damages to Lessee, including an Attempt to Re-rent: No statute.

Notices and Entry:

• Notice to Terminate Tenancy – Fixed End Date in Lease: No statute. Typically, no notice is given as the lease simply expires.
• Notice to Terminate Any Periodic Lease of a Year or More: No statute.
• Notice to Terminate a Periodic Lease – Month-to-Month: No statute.
• Notice to Terminate a Periodic Lease – Week-to-week: No statute.
• Notice to Terminate Lease due to Sale of Property: No statute.
• Notice of date/time of Move-Out Inspection: No statute.
• Eviction Notice for Nonpayment of Rent: Three days (Wyo. Stat. § 1-21-1002).
• Eviction Notice for Lease Violation: Three days (Wyo. Stat. § 1-21-1002).
• Required Notice before Entry: No statute.
• Entry Allowed with Notice for Maintenance and Repairs (non-emergency): Yes. In general, tenants are prohibited from “unreasonably” denying access to the rental unit or refusing a landlord entry (Wyo. Stat. § 1-21-1205).
• Emergency Entry Allowed without Notice: Yes
• Entry Allowed During Tenant’s Extended Absence: Yes.
• Notice to Tenants for Pesticide Use: No statute.
• Lockouts Allowed: No statute.
• Utility Shut-offs Allowed: No statute.

Disclosures and Miscellaneous Notes:

• Name and Addresses: No statute.
• Copy of the Lease: No statute, though it is strongly recommended that tenants ask and receive a copy of the lease.
• Domestic Violence Situations: Landlords cannot terminate rental agreements solely based upon the reason that a tenant, or a tenant’s family member, is a victim of domestic or sexual violence (Wyo. Stat. §  1-21-1303).
• Early Termination Rights: Yes. For details, see Wyo. Stat. §  1-21-1303
• Proof of Status: Landlords can request proof–including court documents or copies of police records–showing that a tenant, or a family member, is a victim of domestic or sexual violence (Wyo. Stat. §  1-21-1303).
• Landlord’s Duties: Wyo. Stat. § 1-21-1202 & Wyo. Stat. § 1-21-1203(a)(i-iv).
  • Compliance: Landlords must keep rental units in a condition that is safe, sanitary, and fit for human occupancy;
  • Repairs: Landlords are not statutorily obligated to make repairs “which do not materially affect the physical health or safety of the ordinary renter.”
  • Common Areas: maintain the rental unit’s common areas so that they are sanitary and reasonably safe;
  • Maintenance: Maintain electrical systems, plumbing, heating, and hot and cold water, as well as other appliances and facilities as specified in the rental agreement.
  • Trash: No statute.
  • Water: No statute.
• Tenant’s Duties: Wyo. Stat. § 1-21-1202 ; Wyo. Stat. § 1-21-1204 ; Wyo. Stat. § 1-21-1205
  • Compliance: Maintain the residential rental unit occupied in a clean and safe condition and not unreasonably burden any common area;
  • Cleanliness: Tenants cannot destroy or damage, in any way, any part of the residential rental unit or knowingly permit other person to do so;
  • Trash: Dispose of all garbage and other waste in a clean and safe manner;
  • Plumbing: Maintain all plumbing fixtures in a sanitary condition;
  • Appliances: Reasonably use all electrical, plumbing, sanitary, heating and other facilities and appliances;
  • Lawful Activity: No statute.
  • Quiet Enjoyment: Tenants may not disrupt other tenants’ “peaceful enjoyment” of their home.
• Retaliation: No statute.
• Lead Disclosure: Landlords must disclose all known lead paint hazards. Landlords must also provide tenants, as an attachment to a written lease, with an information pamphlet on lead-based paint hazards.

Court Related:

• Small Claims Court Limits: $6,000.00, plus court costs
• Eviction Cases Allowed: No. Eviction cases are heard in circuit (i.e., county) court.
• Rules and Forms Governing Small Claims Cases–Wyoming Supreme Court (PDF)
• Wyoming Judicial Branch
• Wyoming Supreme Court
• Wyoming District Court Directory
• Wyoming Circuit Court Directory
• Wyoming Attorney General
• Wyoming State Bar
• Lawyer Referral Directory–Wyoming State Bar
• Wyoming State Bar Modest Means Program
• Legal Aid of Wyoming, Inc.
• Equal Justice Wyoming

Business Licenses:

• Business License required: No statewide statute, but local cities and counties may have regulations and requirements. Check with your local governing authority.

Helpful Links

State agencies & regulatory bodies

• U.S. Department of Housing & Urban Development–Wyoming
• Wyoming Community Development Authority
• Wyoming Real Estate Commission
• Wyoming Division of Banking

Housing Authorities

• Public Housing Authority Contact Information–U.S. Department of Housing and Urban Development
• Casper Housing Authority
• Cheyenne Housing Authority
• Housing Authority Board–City of Douglas, Wyoming

Realtor, and Landlord and tenant associations

• Wyoming REALTORS®
• Cheyenne Board of REALTORS®
• Wyoming Housing Network

This article summarizes some key Montana Landlord-Tenant laws applicable to residential rental units.

We’ve used the Official State Statutes and other online sources cited below to research this information and it should be a good starting point in learning about the law.

With that said, our summary is not intended to be exhaustive or a substitute for qualified legal advice. Laws and statutes are always subject to change, and may even vary from county to county or city to city.

You are responsible for performing your own research and complying with all laws applicable to your unique situation.

If you have legal questions or concerns, we recommend consulting with the appropriate government agencies and/or a qualified lawyer in your area. Your local or state bar association may have a referral service that can help you find a lawyer with experience in landlord-tenant law.

Official Rules, Regulations, and Guide

• Mont. Ann. Code §§ 70-24-101 – 70-24-101 – Chapter 24 – Residential Landlord and Tenant Act of 1977
• Mont. Ann. Code §§70-25-101 – 70-25-206 – Chapter 25 – Residential Tenants’ Security Deposits
• Mont. Ann. Code §§70-33-101 – 70-30-434 – Chapter 33 – Montana Residential Home Mobile Home Lot Rental Act
• Landlord-Tenant: Know the Rules – Montana Department of Justice
• Renting a House or an Apartment – State Bar of Montana
• Montana Tenant-Landlord Guide – Montana Public Interest Research Group (MPIRG) (pdf)

Details

Security Deposit:

• Security Deposit Maximum: No statute.
• Security Deposit Interest: No statute.
• Separate Security Deposit Bank Account: No statute.
• Non-Refundable Fees: No. Any fees for cleaning or damages is considered part of the security deposit (Mont. Ann. Code §§70-25-101(4))
• Deadline for Returning Security Deposit: If there are no damages, the landlord must return the security deposit within 10 days, via mail to an address provided by the tenant or the tenant’s last known address (Mont. Ann. Code §§70-25-202(1))
• Require Written Description/Itemized List of Damages and Charges: The landlord must provide the tenant with a written list of any damages, cleaning charges, and unpaid rent within 30 days of the tenancy’s termination. The list must be accompanied with payment of the difference between the charges and the security deposit. (Mont. Ann. Code §§70-25-202).
• Permitted Uses of the Security Deposit: Deductions can be taken from the security deposit to pay for unpaid rent, late charges, unpaid utilities, “penalties due under lease provisions,” any other money owed to the landlord, as well as the cost of cleaning expenses, “including a reasonable charge for the landlord’s labor” (Mont. Ann. Code §§70-25-201(1)). Cleaning charges cannot be conducted until written notice is given to the tenant specifying the cleaning not done and still needs to be done in order for the premises to be brought to the condition in which it was originally rented. For more details, see Mont. Ann. Code §§70-25-201(3).
• Receipt of Security Deposit: No statute.
• Record Keeping of Deposit Withholdings: No statute.
• Failure to Comply: Landlords who do not provide such a list to the tenant forfeit their right to withhold any part of the security deposit (Mont. Ann. Code §§70-25-203).

Lease, Rent & Fees:

• Rent is Due: Rent is due, without demand or notice, at the beginning of the month and must be paid in monthly installments (Mont. Ann. Code §§70-24-201(2)).
• Payment Methods: Rent can be paid via check or electronic funds transfer to a bank account designated for rent payments (Mont. Ann. Code §§70-24-201(2)).
• Rent Increase Notice: There is no specific statute regarding rent increases. However, Mont. Ann. Code §§70-24-311 allows landlords to adopt “a rule concerning the tenant’s use and occupancy of the premises.” If such a rule is adopted after a rental agreement is created between a tenant and a landlord, the landlord must provide 30 days’ written notice before the rule takes effect. (Mont. Ann. Code §§70-24-311)
• Late Fees: No statute.
• Application Fees: No statute.
• Prepaid Rent: No statute.
• Returned Check Fees: A person who issues a bad check or electronic funds transfer is liable to pay a fee no greater than $30, and the payee to whom the check or payment is made out to can also pursue damages. For more details, see Mont. Ann. Code §§27-1-717(2)(3).
• Tenant Allowed to Withhold Rent for Failure to Provide Essential Services (Water, Heat, etc.): Yes. If a landlord does not provide water, heat, electricity, gas, or other services, whether by negligence or on purpose, the tenant may provide written notice to the landlord, procure their own utilities, and deduct the costs from the monthly rent (Mont. Ann. Code §§70-24-408). Tenants who pursue this course of action cannot terminate the rental agreement, obtain damages and obtain injunctive relief, as stipulated in Mont. Ann. Code §§70-24-406(2), for any noncompliance by the landlord.
• Tenant Allowed to Repair and Deduct Rent: Yes. Tenants can perform repairs that do not cost more than one month’s rent and deduct the cost from rent, provided that the tenant has given the landlord written notice and the landlord has not made the repairs (Mont. Ann. Code §§70-24-406). Tenants who live in a one-, two-, or three-bedroom residence may also reach agreements, in writing, with their landlords allowing the tenant to perform “specified repairs, maintenance tasks, alterations, or remodeling” so long as the landlord is not evading their obligations. For more details, see the statute. (Mont. Ann. Code §§70-24-303)
• Landlord Allowed to Recover Court and Attorney’s Fees:  Yes. (Mont. Ann. Code §§70-24-427)
• Landlord Must Make a Reasonable Attempt to Mitigate Damages to Lessee, including an Attempt to Re-rent: Yes. (Mont. Ann. Code §§70-24-426(3))

Notices and Entry:

• Notice to Terminate Tenancy – Fixed End Date in Lease: No notice is required as the lease simply expires.
• Notice to Terminate Any Periodic Lease of a Year or More: No statute.
• Notice to Terminate a Periodic Lease – Month-to-Month: 30 days’ written notice (Mont. Ann. Code §§70-24-441).
• Notice to Terminate a Periodic Lease – Week-to-week: 7 days’ written notice (Mont. Ann. Code §§70-24-441).
• Notice to Terminate Lease due to Sale of Property: No statute.
• Notice of date/time of Move-Out Inspection: Either the landlord or tenant may request that the rental unit be inspected within one week of the tenancy’s expiration (Mont. Ann. Code §§70-25-201(2)).
• Eviction Notice for Nonpayment: The landlord may terminate the rental agreement once three days have passed since providing written notice of the tenant’s failure to pay rent when it is due. (Mont. Ann. Code §§70-24-422(2)).
• Eviction Notice for Lease Violation: Landlords can evict tenants for having an unauthorized pet or unauthorized people living in the unit, as well as for damaging the unit. For more details regarding specific violations and notice times, see (Mont. Ann. Code §§70-24-422).
• Required Notice before Entry: Landlords must give at least 24 hours’ notice before entering the premises and may not “abuse the right of access” to harass a tenant. (Mont. Ann. Code §§70-24-312)
• Entry Allowed with Notice for Maintenance and Repairs (non-emergency): Yes, but the landlord must give at least 24 hours’ notice before entering the premises. (Mont. Ann. Code §§70-24-312)
• Emergency Entry Allowed without Notice: Yes. (Mont. Ann. Code §§70-24-312)
• Entry Allowed During Tenant’s Extended Absence: Yes, no notice is required during an absence of the tenant in excess of 7 days or more. (Mont. Ann. Code §§70-24-426(2))
• Notice to Tenants for Pesticide Use: No statute.
• Lockouts Allowed: Tenants cannot remove, replace, or add locks that are not supplied by the landlord without the landlord’s written permission. If the tenant does remove and change the lock, the tenant must supply the landlord with a key (Mont. Ann. Code §§70-24-312). If the tenant does not supply a key, the landlord may terminate the rental agreement (Mont. Ann. Code §§70-33-424). The law also prohibits landlords from changing the locks or adding new locks to keep the tenant out (see: Landlord-Tenant: Know the Rules–Montana Department of Justice).
• Utility Shut-offs Allowed: Landlords are prohibited from shutting off any utilities as a means to forcing a tenant to vacate the premises, pay unpaid rent, and so on. (Mont. Ann. Code §§70-24-428)

Disclosures and Miscellaneous Notes:

• Name and Addresses: The landlord, or whomever else enters into a lease agreement with a tenant must provide the tenant, in writing, the names and addresses of the people authorized to manage the rental unit and the unit’s owner, or the person authorized to act on the owner’s behalf. (Mont. Ann. Code §§70-24-301)
• Copy of the Lease: No statute.
• Domestic Violence Situations: No statute.
• Early Termination Rights: No statute.
• Proof of Status: No statute.
• Landlord’s Duties: (Mont. Ann. Code §§70-24-303)
  • Compliance: Landlords must comply with the requirements of all applicable building and housing codes that materially affect the health and safety of tenants; may not knowingly allow any tenant or other person to engage in any activity on the premises that creates a reasonable potential that the premises may be damaged or destroyed or that neighboring tenants may be injured;
  • Repairs: make all repairs and do whatever necessary to put and keep the premises in a fit and habitable condition;
  • Common Areas: keep all common areas of the premises clean and safe;
  • Maintenance: maintain in good and safe working order and condition all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances, including elevators;
  • Trash: provide and maintain appropriate receptacles to remove ashes, garbage, rubbish, and other waste;
  • Water: supply running water and reasonable amounts of hot water at all times. Between October 1 and May 1, the landlord must also supply “reasonable heat.” For exceptions, see the statute.
  • Carbon Monoxide detector: shall install in each dwelling unit an approved carbon monoxide detector that is in good working order.

• Tenant’s Duties: (Mont. Ann. Code §§70-24-321)
  • Compliance: Tenants must comply with all obligations primarily imposed upon tenants by applicable provisions of building and housing codes that materially affect health and safety;
  • Cleanliness: Keep the rental unit and any other part of the premises used by the tenant “reasonably” clean and safe, as the premises’ conditions permit. The tenant must also use the premises and its’ various rooms–bedroom, kitchen, bathroom, etc. –“in a reasonable manner, considering the purposes for which they were designed and intended,”
  • Trash: Dispose of all ashes, garbage, rubbish, and other waste in a manner that is clean and safe;
  • Plumbing: Keep all plumbing fixtures used by the tenant as clean as their condition permits;
  • Appliances: Use, “in a reasonable manner,” all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances, including elevators, in the premises;
  • Lawful Activity: Tenants may not destroy, deface, damage, impair, or remove any part of the premises or permit any other person to do so. Tenants may not engage in, or knowingly allow another person, to engage in unlawful activity.
  • Quiet Enjoyment: Conduct oneself and require other persons on the premises with the tenant’s consent to conduct themselves in a manner, that will not disturb the tenant’s neighbors’ peaceful enjoyment of the premises; and
• Retaliation: Landlords cannot retaliate against tenants for complaining of a lease violation, communicating with a government authority, or becoming involved with a tenant organization. (Mont. Ann. Code §§70-24-431).
• Lead Disclosure: Landlords must disclose all known lead paint hazards. Landlords must also provide tenants, as an attachment to a written lease, with an information pamphlet on lead-based paint hazards.

Court Related:

• Small Claims Court Limits: $7,000 (Mont. Ann. Code §§25-35-502).
• Eviction Cases Allowed: Yes.
• Statute of Limitations
  • Written Contracts: Five years (Mont. Ann. Code §§27-2-202(2)).
  • Oral Contracts: Three years (Mont. Ann. Code §§27-2-202(3)).
• Small Claims Court – Montana Department of Justice
• Montana Judicial Branch
• Montana District Courts
• Montana Courts Self Help Page
• State Bar of Montana
• Legal Aid:
  • Montana Law Help
  • Montana Legal Services Administration
  • ACLU of Montana

Business Licenses:

• Business License required: No statewide statute, but local cities and counties may have regulations and requirements. Check with your local governing authority.

Helpful Links

State agencies & regulatory bodies

• U.S. Department of Housing and Urban Development – Montana
• Montana Housing
• Montana Fair Housing
• Office of Consumer Protection – Montana Department of Justice
• Montana Department of Commerce
• Montana State Auditor, Securities, and Insurance Commissioner
• Montana Division of Banking & Financial Institutions–Department of Administration

Housing Authorities

• List of Montana Public Housing Authorities–Montana Department of Housing

Realtor, and Landlord and tenant associations

• Montana Association of Realtors®
• Billings Association of Realtors®
• Northwest Montana Association of Realtors®
• Helena Association of Realtors®
• United Property Owners of Montana
• Montana Landlords Association
• Western Montana Landlords Association
• Montana Public Interest Research Group

This article summarizes some key Vermont Landlord-Tenant laws applicable to residential rental units.

We’ve used the Official State Statutes and other online sources cited below to research this information and it should be a good starting point in learning about the law.

With that said, our summary is not intended to be exhaustive or a substitute for qualified legal advice. Laws and statutes are always subject to change, and may even vary from county to county or city to city.

You are responsible for performing your own research and complying with all laws applicable to your unique situation.

If you have legal questions or concerns, we recommend consulting with the appropriate government agencies and/or a qualified lawyer in your area. Your local or state bar association may have a referral service that can help you find a lawyer with experience in landlord-tenant law.

Official Rules, Regulations, and Guide

• Title 9: Commerce and Trade, Chapter 137: Residential Rental Agreements
• Rental Housing Health Code – Vermont Department of Health (pdf)
• Renting in Vermont – Champlain Valley Office of Economic Opportunity (CVOEO) (pdf)
• Landlord/Tenant (renter) – Vermont Law Help
• Resources for Renters and Landlords – Vermont Agency of Commerce and Community Development

Details

Security Deposit

• Security Deposit Maximum: No statute.
• Security Deposit Interest: There is no statewide statute dictating interest accrued by a security deposit. However, towns and municipalities in Vermont are allowed to adopt ordinances authorizing the payment of interest. For more information, see 9 V.S.A. § 4461(g).
• Separate Security Deposit Bank Account: No statute.
• Non-Refundable Fees: No statute.
• Pet Deposits and Additional Fees: No statute.
• Deadline for Returning Security Deposit: Landlords must return the security deposit, along with a written statement explaining any deductions, within 14 days of the tenant vacating the rental unit. If a tenant is renting a unit seasonally, the security deposit and accompanying statement must be returned within 60 days (9 V.S.A. § 4461(c)).
• Permitted Uses of the Security Deposit: Landlords can use all or a portion of the security deposit in order to pay for:
  1. nonpayment of rent;
  2. damage caused by the tenant beyond normal wear;
  3. nonpayment of utility charges the tenant would pay directly to the landlord, and
  4. expenses related to removing a tenant’s abandoned possessions (9 V.S.A. § 4461(b)).
• Security Deposit can be Withheld: Yes.
• Require Written Description/Itemized List of Damages and Charges: Yes, such a list must accompany the security deposit when it is returned to the tenant (9 V.S.A. § 4461(c)).
• Receipt of Security Deposit: No statute.
• Record Keeping of Deposit Withholdings: No statute.
• Failure to Comply: If landlords fail to return the deposit within 14 days, the landlord forfeits the right to withhold any part of the security deposit. And if landlords willfully fails to return the security deposit, landlords can be liable for twice the amount of the security deposit, plus attorney’s fees and related costs. (9 V.S.A. § 4461(e)).

Lease, Rent & Fees:

• Rent is Due: Rent is due without demand or notice on a date and location the parties agree to. (9 V.S.A. § 4455(a)).
• Payment Methods: No statute.
• Rent Increase Notice: Landlords must give 60 days’ notice before increasing rent (9 V.S.A. § 4455(b)).
• Late Fees: There is no state statute regarding late fees. However, the 1991 Vermont Supreme Court ruling in Highgate Associates, Ltd. v. Lorna Merryfield established a prohibition against late fees that are charged as penalties. Late fees charged as actual compensation for costs incurred by landlords as a result of late rent payments are the only acceptable situations in which a late fee can be charged.
• Application Fees: Application fees are prohibited by state law (9 V.S.A. § 4456(a)).
• Prepaid Rent: No statute.
• Returned Check Fees: No statute.
• Tenant Allowed to Withhold Rent for Failure to Provide Essential Services (Water, Heat, etc.): Yes. Tenants can withhold rent for major health code violations after they’ve given notice to the landlord regarding the violation and the landlord has not made the necessary repair or alteration. Tenants can also seek injunctive relief and recover damages, costs and reasonable attorney’s fees (9 V.S.A. § 4458).
• Tenant Allowed to Repair and Deduct Rent: If landlords fail to make minor repairs within 30 days of being notified of the need for the repair by the tenant, tenants can conduct the repairs and deduct the cost from the monthly rent. The deduction cannot exceed one-half of a month’s rent. The tenant must provide the landlord with information regarding the cost of the repair when rent is being deducted (9 V.S.A. § 4459(a)).
• Landlord Allowed to Recover Court and Attorney’s Fees: Yes (9 V.S.A. § 4456(e)).
• Landlord Must Make a Reasonable Attempt to Mitigate Damages to Lessee, including an Attempt to Re-rent: No, however, if the landlord rents the dwelling unit before the expiration of the rental agreement, the agreement terminates on the date of the new tenancy. (9 V.S.A. § 4462).

Notices and Entry:

• Notice to Terminate Tenancy – Fixed End Date in Lease: There is nothing in statute, but typically, no notice is needed since the lease simply expires.
• Notice to Terminate Any Periodic Lease of a Year or More: In the case of no-cause evictions for tenancies of two years or more, at least 90 days is required (9 V.S.A. § 4467(c)(1)(B)). In the case of no-cause evictions for tenancies of two years or less, at least 60 days’ notice is required (9 V.S.A. § 4467(c)(1)(A))
• Notice to Terminate a Periodic Lease – Month-to-Month: At least 30 days (9 V.S.A. § 4467(e)).
• Notice to Terminate a Periodic Lease – Week-to-week: 21 days (9 V.S.A. § 4467(c)(2)).
• Notice to Terminate Lease due to Sale of Property: 30 days (9 V.S.A. § 4467(d)).
• Notice of date/time of Move-Out Inspection: No statute.
• Eviction Notice for Nonpayment: 14 days (9 V.S.A. § 4467(a)).
• Eviction Notice for Lease Violation: 30 days notice for lease violations; 14 days notice if the eviction notice is due to criminal activity (9 V.S.A. § 4467(b)(1) and (2)).
• Required Notice before Entry: 48 hours, and the landlord is only allowed to enter the rental unit between the hours of 9am and 9pm (9 V.S.A. § 4460).
• Entry Allowed with Notice for Maintenance and Repairs (non-emergency): Yes (9 V.S.A. § 4460).
• Emergency Entry Allowed without Notice: Yes (9 V.S.A. § 4460).
• Entry Allowed During Tenant’s Extended Absence: No statute.
• Notice to Tenants for Pesticide Use: No statute.
• Lockouts Allowed: No statute.
• Utility Shut-offs Allowed: No. See the Vermont Department of Health’s Rental Housing Health Code, Section 12.1.2.

Disclosures and Miscellaneous Notes:

• Name and Addresses: No statute.
• Copy of the Lease: No statute.
• Domestic Violence Situations: No statute.
• Early Termination Rights: No statute.
• Proof of Status: No statute.
• Landlord’s Duties: (9 V.S.A. § 4457)
  • Compliance: Landlords are required to maintain rental units that “are safe, clean, and fit for human habitation” and which are in compliance with all building, housing and health regulations.
  • Repairs: No statute, but landlords are generally expected to make necessary and needed repairs.
  • Common Areas: No statute.
  • Maintenance: No statute.
  • Trash: No statute.
  • Water: Landlords must ensure there is suitable heat and hot water available.
• Tenant’s Duties: (9 V.S.A. § 4456)
  • Compliance: Tenants are required to adhere to the obligations set forth in building, housing and health codes and regulations.
  • Cleanliness: No statute.
  • Trash: No statute.
  • Plumbing: No statute.
  • Appliances: No statute.
  • Lawful Activity: Tenants shall not deliberately or negligently “destroy, deface, damage, or remove” any part of the rental unit, appliances, fixtures, and so on.
  • Quiet Enjoyment: Tenants are expected to conduct themselves in such a way that does not disturb other tenants’ “peaceful enjoyment” of their homes.
• Retaliation: Landlords cannot retaliate against their tenants for notifying landlords of violations of landlord-tenant law, complaining to a governmental authority, or joining a tenant’s union. Retaliation is presumed if the landlord negatively reacts within 90 days after the tenant’s action (9 V.S.A. § 4465). For information on the City of Burlington’s Anti-retaliation Law, see the city’s Code of Ordinances, Chapter 18, Section 18(29).
• Lead Disclosure: Landlords must disclose all known lead paint hazards. Landlords must also provide tenants, as an attachment to a written lease, with an information pamphlet on lead-based paint hazards.

Court Related:

• Small Claims Court Limits: $5,000 (12 V.S.A. § 5531)
• Eviction Cases Allowed: No
• Debt Collection & Small Claims Court – Vermont Judiciary
• Suing and Being Sued – Small Claims Court – Vermont Judiciary
• Vermont Judiciary
• Vermont Judiciary Court Divisions – Civil Division
• Office of the Vermont Attorney General
• Vermont Bar Association
• Pro Bono Representation – Vermont Bar Association
• Vermont Legal Aid
• Vermont Law Help
• Law Line of Vermont
• Vermont Volunteer Lawyers Project

Business Licenses:

• Business License required: No statewide statute, but local cities and counties may have regulations and requirements. Check with your local governing authority.

Helpful Links

State agencies & regulatory bodies

• U.S. Department of Housing and Urban Development – Vermont
• Vermont Housing Finance Agency
• Vermont Consumer Services
• Vermont Department of Financial Regulation
• Vermont Department of Financial Regulation – Insurance Division
• Vermont Agency of Commerce and Community Development – Housing
• Vermont Housing and Conservation Board

Housing Authorities

• Vermont State Housing Authority
• Bennington Housing Authority
• Brattleboro Housing Partnerships
• Burlington Housing Authority
• Hartford Housing Authority
• Montpelier Housing Authority
• Rutland Housing Authority
• Springfield Housing Authority
• Winooski Housing Authority

Realtor, and Landlord and tenant associations

• Vermont Realtors®
• Green Mountain Association of Realtors®
• Northwestern Vermont Board of Realtors®
• Southern Vermont Board of REALTORS®
• Flat Fee Real Estate
• Vermont Housing Managers Association
• Vermont Apartment Owners Association
• Vermont Tenants, Inc. – Champlain Valley Office of Economic Opportunity (CVOEO)
• Vermont Affordable Housing Coalition

I know a landlord who charges less than any other rental around, never raises the rent, and is happy about it. He rarely has tenant turnover, but he isn’t making any money, either.

Then again, I know a renter who wanted to stay in her rental at least another year, but the management company informed her of a $200 rent increase to renew. She left that place so fast the property managers didn’t know what hit them. A vacancy, that’s what.

There’s an art to striking the right balance between making money on your rental properties and alienating good renters. We’re here to help you hone your art.

Related: How to Raise the Rent in 4 easy Steps [Free Template]

Why rent increases are a part of life

When expenses for owning property go up, raising the rent is necessary to just maintain the bottom line in your rental business. We’re talking expenses for which you have no control:

• Property taxes
• HOA fees
• Mortgage payments with an ARM
• Utilities
• Landlord insurance
• Property management fees

Add in expenses for which you have some control but are still expenses nonetheless:

• Maintenance (lawn care, pest control, gutter cleaning, etc.)
• Repairs (appliance repair or replacement, plumbing issues, tree removal, etc.)
• Vacancies

If you don’t raise the rent when your expenses go up, it’s like taking a pay decrease. Not too many people do that. If the thought of raising the rent at lease renewal time makes you queasy, just run the numbers to determine whether you must increase rent just to maintain your cash flow.

Your expenses don’t determine rent

Higher expenses might be the reason you need to increase rent. But the market ultimately decides how much rent you can charge. If you need to charge more for rent than what comparable units in your area charge, you probably won’t get it. If that’s the case, you should reevaluate whether it makes sense holding onto that property.

You are allowed to make money

You can raise the rent even if your expenses have not gone up or—by some miracle—have decreased. Being a landlord is a business, and the purpose of being in business is to make money. If your rents are lower than area rents, and your property is in comparable shape to those higher-priced rentals around you, go ahead and raise the rent to be on par with the other rentals.

How much of a rent increase is good?

Remember my friend who left her rental and found another place to rent because of the astronomical rent increase? Don’t be that landlord. The $200 increase represented 16.67 percent of her rent. A better yearly rental increase that most people can handle is in the range of 3 to 5 percent, or in this case, a rent increase somewhere between $36 and $60. Most renters probably won’t leave if the rent increase is slight.

When you can’t raise the rent

If your rental property is rent controlled, or if your jurisdiction has a statute limiting rent increases, you must comply with the law. You might not be able to raise the rent as much as you like—or at all.

You also cannot raise the rent on a fixed-term lease during the lease term, so if your lease agreement is for two years, for example, you cannot raise the rent after one year. You must wait until lease renewal time to raise the rent. On a month-to-month tenancy, you need to give proper notice per your state law before you raise the rent. This is usually 30 days, but check your state law first.

If you really can’t bear to raise the rent

If you are like that landlord I know who charges less rent to decrease turnover, that’s fine if you’re happy with the arrangement. But as soon as that tenant moves out, consider getting the market rate for your rental property.

Cozy rent estimate

If you want to find out the rent prices in your area, I recommend using the Cozy rent estimate tool. There’s a slight fee involved, but if you find out that you can get more for rent than what you were planning to charge, this cost pays for itself many times over. Or you might find that you’ve been asking too much; hence, the difficulty finding tenants.

Here’s how the Cozy rent estimate works. Note: the whole process is complete in a minute or two.

1. You fill out the particulars about your property. (If you already have your property stored in Cozy, this information auto fills for you.)
2. You pay.
3. You immediately get your rent estimate for your property.

You can then view the six-page report for a detailed analysis of how Cozy arrived at your rent estimate. Here are some highlights of what you’ll see:

• High and low rents for your ZIP code
• Days on market vs. vacancy for your county
• Addresses of comparable homes and the rent other landlords charge (my favorite section)
• Rent trends

View a sample Cozy Rent Estimate report.

Bottom line

If you know what comparable rental rates are for your area, you can feel confident in what you charge for rent. There are no rules (except if your property falls under rent control) on how much you should charge or whether you should raise the rent each year. But it’s always easier for renters to handle a slight rent increase each year than a one-time ginormous rent increase.