Commerce Encourages Stakeholder Feedback in Interim Study on Property Management
Property management can be an incredibly challenging role. Onsite building managers and regional property managers in particular need a wide-ranging skill set, including application processing, budgeting, rent collection, oversight of maintenance personnel and third-party vendors and adherence to applicable state and federal laws. They even fill the role of social worker, referring their tenants to community resources when they struggle to pay rent or to comply with the terms of their rental agreements. Finding and retaining quality, professional property management staff is a steep climb for both affordable housing providers and private market landlords.
In 2023, the Montana Legislature passed House Bill 358. This legislation included changes to existing statute regarding property management license laws and exemptions for certain owners, such as an owner of a business entity that owns the property. HB 358 also removed an exemption to the property management license requirement for “a person acting as a manager of a housing complex for low-income individuals subsidized either directly or indirectly by the state, any agency or political division of the state, or the government or an agency of the United States.”
In response to this change, the Montana Board of Housing, which is administratively attached to the Montana Department of Commerce, updated its Low Income Housing Tax Credit Compliance Manual to include a summary of HB 358 and its impact on the affordable housing industry. Specifically, the manual reinforces the licensing requirement and the legislation’s immediate effective date on passage and approval.
While the cost of the property management license may be more of a challenge for affordable housing properties, given state and federal funding limitations on rent and rent increases, the current $50.00 annual licensing cost is reasonable. The MBOH and Commerce fully support a requirement that property managers complete 30 hours of pre-licensing education and pass a property manager examination; this requirement should, and now does, apply to affordable rental property managers in the same way it applies to private market rental property managers.
In April 2025, the 69th Legislature passed a joint resolution requesting an interim study of the licensing standards, education and practices of property management in the state with a requirement that the study results be reported to the 70th Legislature in 2027. This bill, House Joint Resolution 55, was enrolled and filed with the Secretary of State on May 6, 2025.
What’s in this study bill? First, HJ 55 directs the Legislative Council to designate an interim committee or statutory committee, or direct sufficient staff resources, to:
- Review the current licensing, education and fee requirements of property managers in Montana.
- Review the conformance of property manager requirements and practice with the Montana Residential Landlord and Tenant Act, the commercial rental laws of Montana and the property management requirements of foreign corporations and investment groups.
- Examine the current end-user costs charged to landowners and tenants as a result of property management licensing and education requirements.
- Identify education requirements and practices from other states to evaluate how Montana's statutes align with or differ from those in other jurisdictions and identify best practices that may inform potential legislative changes.
Finally, the bill requires that “the committee solicit feedback from stakeholders and relevant parties, including but not limited to property managers, landlords, tenants, tenant unions, attorneys who work in landlord-tenant law, professional organizations in the field of landlord-tenant relations, and housing policy experts in the property management industry.”
The MBOH and Commerce strongly encourage our stakeholders and partners to engage in this process and provide feedback to the assigned interim committee or statutory committee. It is critical that our affordable housing industry as a whole supports onsite building and property managers in obtaining appropriate levels of education and training to ensure staff are prepared to meet the demands of their roles.
Commerce will include updates on upcoming committee meetings and opportunities for public comment in Commerce’s “Weekly Roundup” newsletter. Interested parties can sign up to receive Commerce news at commerce.mt.gov.
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