In Montana, what role does tenant performance play in lease renewal?

Tenant performance significantly impacts lease renewal processes. When assessing whether to renew a lease, landlords often evaluate how well tenants have adhered to the terms of the lease during their tenancy. This includes on-time rent payments, property maintenance, and adherence to community guidelines or rules.

Strong tenant performance can lead to favorable renewal terms, as landlords may wish to keep reliable tenants in place. Conversely, poor performance, such as late payments, damage, or any violations of lease agreements, can affect a tenant's eligibility for renewal. This reality encourages tenants to fulfill their responsibilities throughout the lease term, knowing that their performance will be a consideration in the renewal decision.

In contrast, determining the market value of the property involves multiple factors beyond just tenant performance, such as market trends and comparable properties. Additionally, while landlords have discretion in evaluating tenant performance, that discretion is often grounded in documented tenant behavior and relationship history, rather than being solely arbitrary.