Security Deposit Missouri
A Missouri security deposit is money a tenant pays to a landlord before moving into a rental as part of a lease agreement. Landlords hold onto the deposit to cover repairs, cleaning fees, unpaid rent, or other potential charges the tenant is responsible for upon moving out.
Missouri landlords aren’t legally required to collect a security deposit, but most do. Landlords outline the security deposit (also known as a “damage deposit”) within the rental contract and use it as a safety net to cover any unforeseen expenses the tenant may cause.
This guide will cover Missouri’s security deposit rules, including the amount landlords can legally charge, when deductions are allowed, storage procedures, and the exact steps they must follow when returning money to a tenant after the lease has ended.
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Missouri Laws Regulating Security Deposits
Missouri Revised Statutes § 535.300 outlines the procedures for handling security deposits, including deposit limits, return timelines, and deduction procedures.
Before adding security deposit rules to a lease agreement, be sure to brush up on Missouri’s landlord-tenant laws and any local ordinances that may apply to where you live. A quick review can help you stay compliant while navigating security deposits and other common issues, such as entry requirements, eviction procedures, rent control, and more.
Use TurboTenant to generate lease agreements with clear security deposit terms and squash disputes before they arise with digital condition reports.
Maximum Security Deposit Amount
Maximum amount: Landlords in Missouri can charge tenants up to 2 months’ rent for security deposits. Charging more violates state law and could lead to legal recourse from the tenant.
Pet deposits: Missouri landlords may charge a separate pet deposit in addition to the tenant’s standard security deposit. State law doesn’t limit the amount landlords can require as long as the lease agreement outlines it. Emotional support animals (ESAs) and service animals are exempt from pet deposits.
Penalties: Although Missouri law doesn’t specify a penalty for landlords who collect a security deposit exceeding the maximum amount, tenants may have legal grounds to recover funds over the 2 months’ maximum.
Handling Damage Deposits
Security deposit storage: Landlords must store security deposits securely in a federally insured bank, credit union, or similar institution. The deposit legally belongs to the tenant until the landlord returns it or uses it to cover tenant-related expenses.
Interest-bearing account: Missouri law doesn’t require landlords to place security deposits in interest-bearing accounts. If a landlord chooses to do so, any interest the deposit earns will belong to them (and not the tenant).
Receipt: Missouri law doesn’t require landlords to provide tenants with a receipt when collecting a security deposit.
Documentation: To avoid disputes, Missouri landlords should complete move-in and move-out condition reports with photos, videos, and written descriptions. These reports create a record of the unit’s condition and help determine whether any damage occurred during a tenant’s time in the rental unit.
Ownership transfer: In Missouri, when a rental property changes ownership, the new landlord becomes responsible for security deposits paid by the current tenants. As such, the original landlord must transfer all deposits to the property’s new owner or back to the tenants.
Deductions
When landlords cannot deduct: Missouri law prohibits landlords from using a tenant’s deposit to pay for normal wear and tear, which includes:
- Light wall scuffs
- Worn-down carpet from frequent foot traffic
- Minor marks or dents on baseboards
- Nail holes from hanging pictures
- Doorknobs that feel loose or wobbly
When landlords can deduct: Landlords in Missouri can deduct security deposit funds to cover damage beyond normal wear and tear, post-move-out cleaning to return the unit to its original state, missed rent, and any other fees outlined in the lease agreement.
Here are a few common reasons landlords can legally deduct from a security deposit:
- Disposing of a tenant’s abandoned belongings
- Repairs for broken fixtures, holes in walls, or damaged appliances
- Inability to collect rent or late fees at move-out
- Repainting or fixing unapproved alterations to the property
- Deep cleanings
Return Timeline
Timeframe: Missouri landlords have 30 days after the lease ends to return the tenant’s security deposit.
Deduction tracking: Missouri landlords must provide tenants with a written, itemized list of any deductions they make, explaining the specific reasons and costs for each deduction.
Itemized deduction notification: Missouri landlords must send a written, itemized list of security deposit deductions to the tenant within 30 days to their last known address.
Penalties: If a Missouri landlord wrongfully keeps any part of a tenant’s security deposit, misses the 30-day return window, or fails to send a proper itemized list, the tenant can sue them for up to 200% of the amount wrongfully withheld.
Handling Disputes
Move-in/move-out checklist: Landlords must conduct move-out inspections to document the rental unit’s condition in detail. Tenants can be present during the inspection but aren’t legally required to be. Conducting this inspection jointly aims to bring landlords and tenants on the same page regarding the property’s condition, thereby reducing the likelihood of deduction disputes.
Tenant challenge: If a tenant believes the landlord made unfair deductions from their security deposit, they can request more details, negotiate directly with the landlord, or take the issue to small claims court. When taking legal action, tenants may sue their landlords for up to twice the amount wrongfully withheld.
FAQs: Security Deposit Laws in Missouri
When can a landlord deduct from a tenant’s security deposit in Missouri?
Missouri landlords can use a tenant’s security deposit to cover tenant-caused expenses, including:
- Unpaid rent or loss from a broken lease
- Cleaning to restore the unit to move-in condition
- Damage beyond normal wear and tear
- Repairing unauthorized alterations made by the tenant
What is considered normal wear and tear?
“Normal wear and tear” refers to the gradual signs of use that naturally occur in a rental unit over time. Landlords aren’t allowed to use a tenant’s security deposit to pay for expenses related to normal wear and tear.
Common examples include:
- Faded or chipped paint
- Wall scuffs from furniture
- Nail holes from picture frames
- Loose door knobs or handles
- Worn-down carpet in high-traffic areas
Can Missouri landlords charge pet deposits?
Missouri landlords can charge tenants a separate pet deposit. While the state doesn’t set a limit on pet deposits, they should be clearly outlined in the lease and used solely to cover pet-related damage. Legally, pet deposits aren’t considered part of the standard security deposit.
Can a landlord charge for painting in Missouri?
Yes, Missouri landlords can charge for painting, but only to fix damage caused by the tenant, such as covering botched paint jobs or repairing stained or damaged walls. As mentioned earlier, landlords can’t charge tenants for painting-related expenses due to normal wear and tear (such as faded paint or light scuff marks on the walls).
Can landlords ask for more money on top of a security deposit once a tenant moves out?
If repair costs, unpaid rent, or cleaning fees exceed the security deposit amount, Missouri landlords can request that the tenant cover the difference.
When doing so, landlords should provide tenants with:
- A detailed list of all deductions
- Receipts or written repair estimates that correspond with the deductions
- A formal notice requesting payment for the remaining balance
To address the landlord’s request, tenants can dispute the charges, work out a payment plan, negotiate a lower total, or take the landlord to small claims court.
