Free Montana Commercial Lease Agreement Template

A Montana commercial lease agreement rents non-residential property — a storefront, an office, a warehouse, a workshop — to a tenant who will run a business there. Montana draws the line explicitly rather than leaving it to inference.

MCA § 70-24-104(6) states that the Residential Landlord and Tenant Act of 1977 does not govern occupancy under a rental agreement covering premises used by the occupant primarily for commercial or agricultural purposes. Everything in Chapter 24 therefore sits outside a business tenancy.

With the residential act out of the picture, two provisions do the work.

Changing Terms on a Month-to-Month Letting

MCA § 70-26-109 gives a landlord a route that does not require ending the tenancy. In all leases of lands or tenements, or of any interest in them, from month to month, the landlord may change the terms of the lease by giving written notice at least 15 days before the expiration of the month, with the change taking effect at the end of that month.

Fifteen days is short for a Montana commercial lease agreement. For a business tenant on a month-to-month footing, it means the commercial terms can shift twice a quarter with limited warning.

When a Tenant Is in Unlawful Detainer

MCA § 70-27-108 defines unlawful detainer for a tenant of real property for a term less than life. The first ground is continuing in possession, in person or by subtenant, after the term expires without the landlord’s permission — though a tenancy at will has to be terminated by notice first.

The second is rent. Where the tenant stays on after default in payment, and three days’ written notice requiring payment, stating the amount due, or possession of the property has been served on the tenant — and on any subtenant in actual occupation of the premises.

Breaching a covenant, on the same three days. Under § 70-27-108, a tenant who continues in possession after neglecting or failing to perform conditions or covenants of the lease other than the payment of rent — including any covenant not to assign or sublet — is in unlawful detainer once three days’ written notice requiring performance has been served.

Assignment and waste are treated more sharply still. Any tenant or subtenant who assigns or sublets, or commits waste on the demised premises, contrary to the covenants of the lease thereby terminates the lease, and the landlord may proceed on three days’ notice to quit served on the person in possession.

The rent notice also has a long tail. Section 70-27-108 provides that the notice may be served at any time within one year after the rent becomes due.

1. Agree the rent, the escalation basis, the term, and how taxes, insurance, and repair duties divide.
2. Give the lease a definite term rather than letting it run month to month, unless you want the § 70-26-109 change-of-terms route available.
3. Draft the assignment and subletting covenant carefully, since breaching it terminates the lease under § 70-27-108.
4. Record who occupies the premises, because a rent notice has to reach any subtenant in actual occupation.
5. Execute the lease and keep the covenants and notice terms together.

With Chapter 24 excluded, a Montana commercial lease agreement carries almost the whole relationship:

• Legal names of landlord and tenant, and the entity behind each signature.
• A description pinning down the building, unit, and any yard or parking included.
• Rent, the due date, and the basis and timing of increases.
• When the term starts and ends, what renewal looks like, and holdover consequences.
• Covenants on use, assignment, and subletting, drafted with their termination effect in mind.
• Who carries taxes, insurance, and utilities, and which repairs fall where.
• The notice address for each party and any cure period longer than three days.