Montana Supreme Court Rules Restrictions of STRs Allowed under Subdivision Covenants

9/15/2025

The Montana Supreme Court ruled that restrictive covenants barring commercial activity in a Whitefish subdivision apply to short-term rentals. Neighbors sued R&R Mountain Escapes, which operated a vacation rental, arguing it violated covenants requiring “country residential living” and prohibiting business use. The district court ruled for the neighbors in 2023, and the state Supreme Court upheld the decision in July. R&R argued the covenants didn’t explicitly ban rentals, but the court noted that “residential purpose” depends on use and duration, and commercial activity includes for-profit rentals. Chief Justice Cory Swanson emphasized that property owners voluntarily accept covenants, creating enforceable expectations, and that the subdivision’s intent was to maintain single-family residential use, permitting only personal farming or ranching.

Daily Inter Lake (MT) (09/10/25) Heidi Desch