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Senate committee advances study of property management licensing and fees
Summary
Representative Amy Regier’s House Joint Resolution 55, which would direct an interim study of property management licensing, education and tenant-facing fees, advanced from the Senate Business, Labor and Economic Affairs Committee after proponents and an informational witness described the bill’s scope and purpose.
Representative Amy Regier introduced House Joint Resolution 55 on behalf of House District 6, asking the Senate Business, Labor and Economic Affairs Committee to approve a study of property management licensing, education and fees and how those practices affect end-user costs.
Regier said the study is intended to help future lawmakers “evaluate effective policy making” around property management practices. "This particular study asked for the appropriate interim committee to look at licensing, education, and fees associated with property management, and how those practices all affect the end user cost," she said.
John Sendrude, representing the Montana Landlord Association, urged the committee to give the resolution a due pass. He noted that a recent change moved property management oversight from the Board of Realty Regulation into the Montana Department of Labor and Industry and said the shift makes now a logical time to study how property managers are educated and how they implement landlord-tenant law. "We would urge a due pass on HJ 55, mister chair," Sendrude said.
Kevin Bragg, bureau chief for professional licensing at the Montana Department of Labor and Industry, told the committee the department operates the property management program and offered to answer members’ questions.
Committee members asked whether the study would examine fees charged to prospective tenants — including fees for showing properties — and Regier confirmed the study grew from negotiations that included that issue. Multiple senators said a study could help address inconsistencies between larger property management companies and smaller, individual landlords, and could examine consumer impacts in both rural and college-town rental markets. One member urged the study to include handling of property condition and return of deposits.
The committee later took executive action on HJ 55. After a short round of discussion about renters’ exposure to fees and differences in property management practices, members called the question and the committee recorded a voice vote in favor. Chair Noland declared HJ 55 passed out of the Senate Business, Labor and Economic Affairs Committee and moved on to the floor.
Next steps: HJ 55 will be scheduled for floor consideration; the interim committee named in the resolution will conduct the directed study if the resolution is enacted.
