Real estate developers, property managers and landlords may need to change the way they handle security deposits going forward.
Separate Trust Account
Missouri law now requires that landlords keep tenant security deposits in a trust account, separate from operating expenses and other accounts. Licensed Missouri real estate brokers aren’t required to keep security deposits in a trust, but must still keep the money in a separate account.
Carpet Cleaning Charges
According to the updated statute, landlords can now charge for carpet cleaning expenses and deduct the amount from the security deposit. To do so, the lease must have a special provision explaining the service. Landlords should consider revising future leases to take advantage of the new law permitting landlords to charge tenants for carpet cleaning.
If a landlord wrongfully withholds the security deposit, the tenant can recover as damages up to twice the amount wrongfully withheld.
Contact an Anders advisor with questions on how the lease changes will affect your rental property.All Insights