Your operational expenses quietly increase every year. To ensure your bottom line keeps up with the rising costs of landlording, you have to increase your monthly rate. But before you adjust a tenant’s rent payment, make sure you understand Missouri rent increase laws.
Even though Missouri isn’t a rent-controlled state, local landlord-tenant laws still apply. In this guide, we’ll discuss notice requirements, rent increase letters, and best practices to mitigate risk. Plus, we include a free rent increase letter template from TurboTenant. Let’s dive in:
Is there a rent increase limit in Missouri?
Here’s a quick rundown of the must-know Missouri rent increase laws:
Statewide caps: State law doesn’t limit increases to a certain dollar amount. As a result, most landlords use the market rate to calculate a reasonable price. By looking at your property’s features, square footage, and renter demand, you can identify a fair yet competitive range for your listing.
Local rent control ordinances: Beyond not having statewide rent control, Missouri law also bars cities and counties from enacting their own policies. Overall, local governments can’t regulate how much landlords charge tenants (Mo. Rev. Stat. § 441.043).
Exceptions: Missouri laws prohibiting rent control don’t extend to federal housing programs. If your property participates in programs, such as Section 8, make sure you follow federal rent regulations. State law doesn’t specify any exemptions.
Rent Increase Notice Periods
Missouri law doesn’t outline notice requirements for rent increases, so landlords typically follow the guidelines for lease termination. Landlords must give different notice periods based on the type of lease agreement they use. Keep the following timelines in mind:
Fixed-Term Lease
State law requires landlords to give tenants 60 days’ written notice before terminating a fixed-term lease (Mo. Rev. Stat. § 441.050). We recommend abiding by the same rule when increasing rent.
Keep in Mind: You can’t raise a tenant’s rent in the middle of a fixed-term lease. Instead, propose a new price when renewing the lease.
Month-to-Month Lease
Similarly, you must give 1 month’s written notice to terminate a month-to-month lease in Missouri (Mo. Rev. Stat. § 441.060). As a best practice, provide 1 month’s notice before increasing a tenant’s rent, too.
Room Rental Agreements
Even if you’re not renting out the entire property, Missouri law requires the following notice periods for room rental agreements:
- 60 days’ notice for fixed-term leases (Mo. Rev. Stat. § 441.050)
- 1 month’s notice for month-to-month leases (Mo. Rev. Stat. § 441.060)
In addition to covering the legal basics, notifying your tenants is a great way to practice transparency, professionalism, and common courtesy. After all, no one wants to be surprised by changes in their living expenses.
How to Deliver a Rent Increase Notice in Missouri
State law only requires landlords to notify tenants in writing, but it doesn’t specify delivery methods. As a result, landlords choose their own process. Whichever method you select, just make sure it creates proof of delivery. Here are a few examples:
- Hand delivery
- Certified Mail
- Posting it on the property
- Electronic delivery (via landlord software)
And don’t forget to outline your delivery protocol for legal notices in your lease agreement. Have your tenants sign it to lock in their agreement in writing.
If you send the rent increase letter electronically or hand-deliver it to the tenant, start the notice period immediately. But if you mail it, wait about 3 days to start the clock.
Understanding Illegal Rent Increase and Retaliation
Missouri law doesn’t detail landlord retaliation. However, courts generally allow tenants to use retaliation as a defense in eviction cases. Err on the side of caution by avoiding retaliatory rent increases. Never raise a tenant’s rent to punish them for doing the following:
- Joining a tenant association
- Requesting repairs
- Complaining to government agencies about housing code violations in good faith
Additionally, federal law clearly prohibits all forms of discrimination. When it comes to price adjustments, you can’t offer unequal rental terms or consider the federally protected traits, such as:
- Race
- Color
- National origin
- Religion
- Sex
- Familial status
- Disability (Fair Housing Act)
Avoid disputes and legal headaches by being fair, consistent, and honest. And never breach your agreement by attempting a mid-term hike unless your lease allows it.
How to Write a Missouri-Compliant Rent Increase Letter
Next, let’s analyze the rent increase letter. Whether you’re in St. Louis, Springfield, or Jefferson City, make sure you include the following:
- Property address and unit number
- Tenant names
- New total rent amount
- Exact dollar amount of the increase
- Effective date
- Instructions for tenants to accept or opt out
The most efficient way to create your letter is to use our free rent increase letter template. TurboTenant’s standardized PDF makes the process quick and reduces errors.
Managing the Rent Increase Process with Tenants
After you deliver your rent increase notice, wait for your tenants to respond. Here’s how top landlords keep the ball rolling:
- Negotiate: When great tenants want to stay in your unit but push back on the price, consider offering them a longer lease term or postponing the new rate’s effective date.
- Accept: If tenants agree and decide to continue renting your property, prepare the renewed lease. Outline your rent collection policy for the updated rate, and begin charging the new price on the start date.
- Decline: Tenants who refuse the increase must move out of your unit when their lease ends. Get ready to fill the upcoming vacancy as quickly as possible to reduce gaps in rental income.
Use our Missouri rent increase laws guide to make the process simple, stress-free, and low-risk from start to finish.
Missouri Rent Increase FAQs
How much can I raise rent in Missouri?
Missouri doesn’t cap rent increases. Consider your local market rate to determine the right price for your renewal.
Is there a maximum late fee in Missouri?
Landlords can charge up to $20 or 20% of 1 month’s rent, whichever is greater (Mo. Rev. Stat. § 415.417). Just be sure to outline all late payment penalties in your lease.
Can I increase rent if the tenant is on a verbal agreement?
Whether you’re using a verbal or written agreement, always abide by the following notice requirements in Missouri rent increase laws:
- 60 days’ notice for fixed-term leases (Mo. Rev. Stat. § 441.050)
- 1 month’s notice for month-to-month leases (Mo. Rev. Stat. § 441.060)