_________ Bill No. _______

Introduced By _______________________________________________________________________________

A Bill for an Act entitled: "An Act limiting rent increases; and amending section

70-24-201, MCA."

Be it enacted by the Legislature of the State of Montana:

Section 1.  Section 70-24-201, MCA, is amended to read:

"70-24-201.   Rental agreement -- terms and conditions. (1) A landlord and a tenant may include in a rental agreement terms and conditions not prohibited by this chapter or other rule or law, including rent, term of the agreement, and other provisions governing the rights and obligations of the parties.

(2)  Unless the rental agreement provides otherwise and except as provided in subsection (4):

(a)  the tenant shall pay as rent the fair rental value for the use and occupancy of the dwelling unit as determined by the landlord;

(b)  rent is payable at the landlord's address;

(c)  periodic rent is payable at the beginning of a term of a month or less and otherwise in equal monthly installments at the beginning of each month;

(d)  rent is uniformly apportionable from day to day; and

(e)  the tenancy is week to week in the case of a roomer who pays weekly rent and in all other cases month to month.

(3)  Rent is payable without demand or notice at the time and place agreed upon by the parties or provided for by subsection (2) of this section.

(4) The amount of a rent increase that may be charged for a continuing tenancy by the same tenant is limited to the amount necessary to reimburse the landlord for any increased real property taxes, increased utility expenses, or other increased operating expenses related to the rental unit. In addition, the rent may be increased annually by not more than 5%.

(5) The restriction on rent increases imposed by subsection (4) does not apply to a new occupancy of a rental unit."