Security deposits in Missouri are regulated by Missouri Revised Statutes § 535.300. Certain municipalities may have local laws that supplement state regulations. To ensure full compliance, verify the regulations applicable in your area.

Maximum Security Deposit

Security deposits are limited to two months’ rent.

Holding & Interest Requirements

Holding Requirements: Security deposits must be held in a bank, credit union, or depository institution that is insured by an agency of the federal government.

Interest on Deposits: Missouri state law does not currently require landlords/property managers to pay tenants interest on security deposits.

Information Provided to Tenant: There is no specific requirement for landlords/property managers to provide tenants with information about where the security deposit is held.

Deposit Refunds

Timeline: Within 30 days of the tenant’s vacancy, the landlord/property manager must either (1) return the full security deposit to the tenant or (2) send an itemized list of deductions, along with the remaining portion of the security deposit, to the tenant’s last known address.

Permissible Deductions: Landlords/property managers may deduct the following from a security deposit:

• Unpaid rent
• Damages beyond normal wear and tear
• Carpet cleaning, so long as the lease includes a provision allowing recovery of carpet cleaning costs for damages that exceed normal wear and tear
• Damages resulting from the tenant’s failure to give adequate notice to terminate the tenancy, provided that the landlord makes reasonable efforts to mitigate damages

Move-Out Inspection and Documentation of Deductions: For the purposes of scheduling a move-out inspection, landlords/property managers must give tenants reasonable notice of the date and time that they will inspect the premises and determine any deductions to the security deposit. The tenant has a right to be present at this inspection. If deductions are made, landlords/property managers must provide an itemized list of the deductions to the tenant. If deductions are specifically made for carpet cleaning, landlords/property managers must provide the tenant with a receipt for the actual carpet cleaning costs within 30 days of the end of the tenancy.

‍Penalties for Violations: Failure to return the security deposit or provide the itemized list of deductions as required may result in the landlord/property manager being liable for up to 2x the amount wrongfully withheld, plus reasonable attorney’s fees and court costs if the tenant wins in a lawsuit.

Sale of the Rental Property

Missouri state law does not provide specific regulations governing how security deposits must be handled when a rental property is sold.