Missouri’s security deposit laws provide landlords with a clear path to avoid common issues such as unclear deductions, missed deadlines, or mistakes in handling tenant funds. In this guide, landlords learn everything they need to know about these rules, including max deposit amounts, proper storage, interest requirements, legal deduction reasons, return timelines, dispute procedures, and more.
Statutes Regulating Missouri Security Deposits
Missouri security deposit rules are set out in Section 535.300 of the Missouri Revised Statutes and govern how landlords collect deposits, store funds, apply lawful deductions, and return money to tenants within the required timeline.
Maximum Security Deposit Amounts Under Missouri Law
Missouri sets a clear limit on residential security deposits, allowing landlords to collect up to 2 months’ rent. This cap applies to all standard residential leases and does not vary by lease length or other agreement terms, so that landlords can plan their practices with confidence.
Missouri offers no exceptions that allow amounts exceeding the 2-month limit.
Security Deposit Storage Regulations
Missouri requires landlords to hold every security deposit in a bank, credit union, or similar depository institution insured by a federal agency. Landlords can choose the type of account, but the funds must stay in an insured institution to comply with state rules.
Missouri law does not require landlords to use an interest-bearing account, notify tenants about where the deposit is stored, or issue a receipt. For example, a landlord cannot hold a tenant’s security deposit as personal cash outside an insured institution.
Security Deposit Interest in Missouri
Missouri does not require landlords to place security deposits in interest-bearing accounts, and landlords will never owe tenants interest on the funds they hold.
Making Security Deposit Deductions
Security deposit deductions help landlords protect the long-term health of a rental property by covering repair costs that surface after a tenant moves out. When damage exceeds normal wear and tear, landlords rely on deposit funds to return the unit to the condition it was in at the start of the lease.
When Landlords Can Deduct
Missouri landlords can draw from a tenant’s security deposit for the following reasons:
- Repair damage beyond normal wear and tear that occurred during the tenancy.
- Cover unpaid rent owed after the lease ends.
- Restore the rental unit to its original move-in condition.
- Address lease violations that create clear physical damage.
- Replace fixtures or items that tenants damaged through misuse or neglect.
When Landlords Can’t Deduct
Missouri landlords cannot draw from a tenant’s security deposit for the following reasons:
- Fix minor wear that reflects ordinary and expected use.
- Address deterioration that results from age rather than tenant actions.
- Upgrade property features that landlords choose to improve.
- Cover basic cleaning tied to routine turnover practices.
- Repair issues caused by the landlord’s failure to maintain building systems.
Necessary Documentation to Accompany Deductions
Missouri requires landlords to give tenants a written, itemized list of damages and repair costs when they withhold part of a security deposit. Landlords must send this itemized statement within 30 days of the tenancy ending, along with any remaining portion of the deposit.
What to Do When Deductions are Greater Than the Deposit
Tenants sometimes cause damage that exceeds the security deposit. When that happens, Missouri landlords should request the remaining balance from the former tenant and keep clear documentation of every repair cost. If the tenant refuses to pay, the landlord can pursue the outstanding amount through small claims court or send the matter to a collections agency.
Returning Security Deposits to Tenants
Missouri sets clear expectations for how landlords must return any remaining portion of a tenant’s security deposit after lawful deductions, which helps ensure a smooth and accountable end to each tenancy.
Required Timeline for Return
Missouri requires landlords to return any remaining deposit within 30 days after the tenancy ends and the tenant vacates the rental. During that same 30-day period, landlords must also provide the tenant with a written, itemized list outlining every deduction and the cost associated with each repair.
Method for Return
Missouri does not mandate a specific method for returning deposit funds, allowing landlords to use standard payment options such as a check or electronic transfer. Landlords must include a written, itemized list of deductions when they return the remaining balance.
Penalties for Late Return
If a landlord in Missouri misses the 30-day deadline or improperly withholds money, the tenant may claim the amount improperly withheld plus a penalty of up to twice that amount. This steep consequence encourages landlords to follow the required return process closely.
Security Deposit Disputes
Tenants who disagree with how a landlord handles their security deposit have every right to dispute the charges. Most tenants start by reviewing the itemized deductions, asking a landlord directly for clarification, and challenging any amounts they believe fall outside Missouri rules or the terms of the lease.
As a landlord, prepare for potential disputes by using digital move-in and move-out checklists, staying current with accounting and bookkeeping, and outlining clear standards in the Missouri lease agreement. Strong documentation, a solid grasp of Missouri law, and strict attention to all required timelines help also prevent issues before they start.
Using Condition Reports to Document Damage
When managing security deposits in Missouri, landlords should always use detailed move-in and move-out condition reports to capture the unit’s condition at both stages. Doing so helps landlords address damage confidently, reduce disputes, and simplify their day-to-day.
To do so, use property management software to create digital reports with photos and videos directly from a smartphone. Documenting a property’s condition before move-in and after move-out supports every deduction and often leaves little room for disagreement.
Sign up for a free TurboTenant account to streamline documentation and keep condition reports organized and easy to access.
FAQs: Missouri Security Deposit Law
Can a landlord deduct painting from a security deposit in Missouri?
A Missouri landlord may deduct painting costs only when a tenant leaves damage that goes beyond normal wear and tear. Routine repainting tied to normal turnover does not constitute damage and cannot justify the use of any portion of the tenant’s security deposit.
Are nail holes considered normal wear and tear in Missouri?
Small nail holes usually count as normal wear and tear in Missouri. Because light wall marks reflect everyday use, landlords cannot deduct repair costs for standard nail holes unless the tenant leaves extensive damage.
Who has to pay for carpet cleaning in Missouri, the landlord or the tenant?
Landlords in Missouri cannot charge tenants for routine carpet cleaning. When a tenant leaves stains, odors, or carpet damage that exceeds normal wear and tear, a landlord may deduct the cost of cleaning or repairs from the security deposit.
What happens if a landlord doesn’t return a security deposit within 30 days in Missouri?
If a Missouri landlord misses the 30-day deadline or improperly withholds funds, the tenant may recover the amount improperly withheld plus a penalty of up to twice that amount.
