As a landlord in the state of Missouri, it is critical to stay aware of both federal and state regulations that might affect the way that you run your rental business. Regulations on rent, evictions, fair housing, and more all affect the way you can operate your rentals.
This article covers some of the most important aspects of Missouri landlord tenant laws that you should be aware of.
Rent Control is Banned in Missouri
In some states, the amount that landlords can charge for rent is limited by the government. This is called rent control, and it is banned by Missouri rent laws. As a landlord, you can charge any amount that you want for rent, but it is always a best practice to be aware of pricing trends in your area so that you stay competitive in the market. The median rent price in the state is around $1,300, and charging an outlier price may do more harm for your business than good.
Security Deposit Amounts are Regulated
Though rent control is banned in the state, there is a regulated limit as to how much a landlord can charge a tenant for their initial security deposit. This limit is the equivalent of the cost of two months’ rent. This means that if you are charging the median monthly rent price in the state –($1,300), the most that you would be able to charge for a security deposit would be $2,600.
Missouri law also states that the security deposit must be returned to a tenant within 30 days after they move out of your property, though certain funds can be withheld to pay for issues such as property damage or failure to pay rent if you provide an itemized list of those withholdings. It is also worth noting that the law allows landlords to keep any interest that accumulates while the security deposit is being held.
There is no Mandatory Grace Period in Missouri
Many states require landlords to give tenants a grace period that usually lasts somewhere around a week after the rent collection date during which the tenant can still pay without penalty of late fees. This is not required in Missouri law, meaning that you can charge late fees as soon as the rent collection date passes.
There is also notably no limit to the amount that can be charged for late fees like there is in other states, meaning you can theoretically charge as much as you would like. As a guideline, though, a standard late fee for rent is usually around 5-10% of the monthly rent cost.
You Do Not Need to Issue a Rent Demand Notice
Missouri laws on eviction do not require you to issue a rent demand notice before you file for eviction. A rent demand notice alerts a tenant to their failure to pay rent and gives them a window of time before the landlord files for eviction. This means that you can theoretically file for eviction as soon as the rent collection date has passed because there is also no law requiring a grace period.
Other violations to the lease require a ten-day period during which a tenant can cure the issue before the landlord can file. An unconditional notice to quit in the case of serious issues like a violation of the law on the property also requires ten days for the tenant to vacate the property.
The Servicemembers Civil Relief Act is one law specific to Missouri that may affect the eviction process. This law allows active service members to break their leases early if they have to leave the property due to being on duty for at least the next 90 days, as long as they provide their landlord with a written notice that says as much.
Conclusion
Even though it can be tedious work, it is one of your jobs as a landlord to know about the different property management laws in your state. Given how valuable it is to protect the investments you make in your business from any potential legal problems, it is one of the most crucial parts of your job. This article has hopefully provided you with valuable insight into how to make informed and careful legal decisions for your business going forward.
