Key Takeaways
- Missouri landlords can charge a maximum security deposit of two months’ rent and may collect an additional pet deposit, but must exempt residents with assistance animals.
- Security deposits must be held in federally insured accounts, used only for allowable deductions such as unpaid rent, damages beyond normal wear and tear, and cleaning, and returned within 30 days with an itemized statement.
- Residents cannot apply their security deposit toward last month’s rent, and landlords should include a clear lease clause to prevent misunderstandings.
As a Missouri landlord, understanding the basics of MRS Title 29, Chapter 441 is essential for success, especially the state’s security deposit laws.
These rules cover the maximum deposit, allowable deductions, return deadlines, and more.
Violating them, even unintentionally, can be costly. For example, late returns can result in double the withheld amount and potential litigation costs.
This guide from Keyrenter St. Louis West covers everything you need to know to stay compliant and protect your investment.
Keep reading to learn more!
Contact Us!
Maximum Security Deposit Limit
Landlords charging security deposits in Missouri must abide by the state’s limit of two months’ rent.
If charging a monthly rent amount of, say, $1,500, then it means that you can’t require a security deposit amount exceeding $3,000.
Additional Pet Deposits
In addition to the security deposit, landlords in Missouri can also charge residents an additional pet deposit.
You can then use the deposit to cover any pet-related damage that occurs in the property.
Examples of pet-related damage in a rental property include the following:
- Scratches on floors, doors, or window sills.
- Chewed up fixtures or blinds.
- Stains or odors on carpets or walls from accidents.
- Costs for flea or other pest infestations.
If the resident moves out without fixing any of these damages, you can use the pet deposit to cover them.
When charging pet deposits, however, make sure to exempt persons with assistance animals.
This is because disability is a covered characteristic under the Federal Fair Housing Act (FHA).
Security Deposit Holdings
In Missouri, landlords must hold residents’ security deposits in financial institutions that are federally insured. These can be banks, and credit unions, among others.
Unlike some other states, the Missouri security deposit law doesn’t regulate commingling of deposits.
As such, as a landlord, you can hold the residents’ security deposits in accounts that have other funds as well.
Sale of Rental Property in Missouri
Missouri state law doesn’t regulate how a landlord must handle security deposits in case of selling an occupied rental property.
But, it requires that the one in possession of the deposit handle it per the state’s security deposit rules.
Security Deposit Deductions
As a landlord, you have the right to make appropriate deductions from a resident’s security deposit.
Be that as it may, you cannot make deductions for whatever reason. Rather, the reason must be legitimate and allowable under the state’s security deposit rules.
Under the Missouri security deposit laws, the following are the deductions a landlord can make after the resident leaves:
- Unpaid rent.
- Unpaid utilities.
- Unpaid late fees.
- Carpet cleaning.
- Monetary damage resulting from early lease termination.
- Costs of damage exceeding normal wear and tear.
Missouri defines normal wear and tear as normal property deterioration that occurs over time.
Examples of this type of damage include the following:
- Faded paint.
- Faded flooring.
- Gently worn carpets.
- Stained bath fixtures.
- Lightly dirtied grout.
- Lightly scratched glass.
- Loose door handles.
Excessive damage, on the other hand, refers to the type of damage that occurs from negligence, or carelessness. The following are some examples:
- Broken tiles.
- Broken windows.
- Heavily stained carpets.
- Missing fixtures.
- Holes in the wall.
Security Deposit Returns
After the lease term has expired, Missouri landlords have up to 30 days to return any remaining portion to the resident.
If you have made any allowable deduction, you must also provide the resident with an itemized list of damages.
It’s also important to note that Missouri residents have a right to attend the final inspection.
You must notify them within a reasonable time of this right. If you fail to do so, the resident can take legal action against you.
Security Deposit as Last Month’s Rent
In Missouri, residents cannot use their security deposit to cover last month’s rent.
To avoid confusion, it is a good practice to include a clause in the lease explicitly stating that the security deposit cannot be applied toward rent.
This ensures both landlords and residents clearly understand how the deposit is intended to be used.
FREE Rental Analysis!
Conclusion
These are the key basics of Missouri security deposit law that every landlord should know. Be sure to also review any additional local regulations that may apply.
If you have questions or need professional property management services, Keyrenter St. Louis West is here to help.
We provide expert property management in Clayton, Missouri, and the surrounding areas. Contact us to learn more.
Disclaimer: Please note that the information provided in this blog is intended for general guidance and should not be considered as a replacement for professional legal advice. It is important to be aware that laws pertaining to property management may change, rendering this information outdated by the time you read it.