Montana court hears dispute over whether restrictive covenants bar short‑term rentals

The Montana Courts heard oral argument in cause number DA223‑0716 over whether restrictive covenants permit short‑term rentals of a single‑family home owned by R and R Mountain Escapes LLC.

At argument, counsel for the appellants said the covenants expressly allow rentals and contain no language limiting duration; counsel for the neighboring homeowners said the covenants' broad ban on "commercial" purposes and other provisions show short‑term, nightly rentals are not residential uses. The case centers on how to read the covenants together and which precedents govern, including Craig Tracks and Myers v. Kleinhans.

Appellants' argument: Stephanie Boggess, appearing for R and R Mountain Escapes (which counsel said is wholly owned by Dr. Russell Palmer and Ramona Stewart), told the court the covenants "allow rentals" and contain "no language about duration," and therefore the documents are not ambiguous on the point. Boggess said the signage provision in the covenants expressly contemplates advertising "for sale or rent," and that the…