Missouri Security Deposit Laws: Limits, Returns & Deductions

Governed primarily by Mo. Rev. Stat. § 535.300 (effective August 28, 2018), Missouri security deposit laws provide clear guidelines for both the amount a landlord can collect and the timeline for returning it. Failure to adhere to the strict 30-day return window can result in significant financial penalties for the landlord.

Maximum Security Deposit Limit

Under Missouri law (Mo. Rev. Stat. § 535.300), a landlord may not demand or receive a security deposit in an amount that exceeds two months' rent.

Pet Deposits and Additional Fees

• Pet Deposits: Landlords can charge a pet deposit. Importantly, under Missouri law (Mo. Rev. Stat. § 535.300.8), pet deposits are explicitly excluded from the definition of a security deposit and do not count toward the two-month rent maximum, but they are capped at a maximum of one month's rent.
• Non-Refundable Fees: Missouri law allows landlords to charge non-refundable fees (e.g., a non-refundable pet fee or cleaning fee) if explicitly stated in the lease. These fees must be clearly distinguished from a "deposit," as deposits are inherently refundable under state law.

Holding the Security Deposit

Unlike some states, Missouri has relatively few requirements for how the deposit must be stored:

• Insured Institution: Landlords are required to hold all security deposits in a bank, credit union, or depository institution insured by an agency of the federal government (Mo. Rev. Stat. § 535.300.2).
• Interest: Landlords are not required to pay the tenant any interest earned on the security deposit; any interest earned is the property of the landlord unless agreed otherwise.
• Trust Manner: The funds must be held in a trust-like manner for the tenant until they are rightfully claimed for allowable deductions.

Allowable Deductions

A landlord may only withhold funds from the security deposit for specific, legally permissible reasons:

1. Unpaid Rent: To cover any rent the tenant failed to pay.
2. Property Damage: To repair damages caused by the tenant, their pets, or their guests that exceed "ordinary wear and tear."
3. Lease Breaches: To compensate the landlord for actual damages caused by the tenant's failure to adequately comply with the lease agreement (e.g., early termination fees, if stipulated).
4. Cleaning: To restore the rental unit to the condition it was in at the commencement of the tenancy, ordinary wear and tear excepted. Note that carpet cleaning costs may only be withheld if the rental agreement specifically allows for it and the landlord provides a receipt for the actual costs (Mo. Rev. Stat. § 535.300.4).

Ordinary Wear and Tear

Landlords cannot deduct for normal depreciation. Examples of normal wear and tear include:

• Faded paint from sunlight
• Gently worn carpets in high-traffic areas
• Scuff marks on walls from normal moving of furniture

The 30-Day Return Deadline

Following the termination of the tenancy (when the tenant hands over the keys and vacates), the landlord has exactly 30 days to return the security deposit.

If the landlord makes deductions, they must send the tenant within that 30-day window:

1. The remaining balance of the security deposit (if any).
2. A written, itemized list detailing exactly what was withheld and why.

If the tenant provided a forwarding address, the items must be mailed there. If no address was provided, the landlord must mail it to the tenant's last known address (often the rental property itself).

Move-Out Inspections

Missouri tenants have the right to be present during the move-out inspection to determine damages:

• The inspection must be held at a reasonable time.
• The landlord must provide the tenant with reasonable notice in writing (at the last known address or in person) of the date and time of the inspection, regardless of whether the tenant requests it.
• The tenant shall have the right to be present at the inspection of the dwelling unit at the time and date scheduled by the landlord.

Penalties for Landlord Non-Compliance

If a landlord wrongfully withholds all or part of the security deposit, or fails to provide the itemized statement within the 30-day window, the tenant may sue in the Associate Circuit Court or Small Claims Court of the county where the property is located.

If the court finds the landlord acted wrongfully, the tenant shall recover:

• The amount wrongfully withheld.
• Damages equal to twice the amount wrongfully withheld (Mo. Rev. Stat. § 535.300.6).

Best Practices for Missouri Landlords

1. Document Condition Thoroughly: Always conduct a detailed move-in and move-out inspection, heavily supported by photos and videos signed by the tenant.
2. Never Exceed the Security Deposit Limit: Ensure your base security deposit does not exceed two months' rent. Note that pet deposits are legally separate and capped at one month's rent.
3. Be Specific with Fees: If you want a non-refundable cleaning or pet fee, explicitly label it a "Fee" in the lease, never a "Deposit."
4. Adhere Strictly to the 30-Day Rule: Mark your calendar the day the tenant moves out. Sending the itemized list on day 31 opens you up to mandatory double-damage lawsuits.

How Landager Helps

Landager simplifies security deposit management by tracking the exact amount collected, differentiating between refundable deposits and non-refundable fees, and providing automated alerts approaching the 30-day return deadline when a tenant moves out.

Official Law Citation: Missouri law limits security deposits to two months' rent and requires landlords to return them within 30 days of the lease ending. (Mo. Rev. Stat. § 535.300)

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