A security deposit is money paid by the Tenant to the Landlord as a "safety net" to ensure Tenant compliance with the lease. Security deposits are refundable after permitted deductions are made when the Tenant moves out.

Missouri law caps security deposits at two months' Base Rent (Mo. Rev. Stat. § 535.300(1)). You cannot charge more than this, regardless of what your lease says. Common practice is one month's rent. Check local ordinances — some cities may impose stricter limits.

Missouri requires that security deposits be held in a bank, credit union, or other depository institution insured by an agency of the federal government (Mo. Rev. Stat. § 535.300(1)). Best practice: keep it in a separate account to avoid commingling issues.

Generally, you may deduct for:

If you withhold any portion, provide the Tenant with a Notice of Security Deposit Withholding within 30 days of move-out.

Missouri law does not prohibit Landlords from charging for their own repair labor. You do not need to hire a contractor to deduct repair costs — reasonable documented labor costs are generally recoverable. Best practice: take before/after photos and log time spent on repairs.

You must return the deposit (or provide an itemized statement of deductions) within 30 days after the tenancy ends. Failure to comply without good cause exposes you to twice the amount wrongfully withheld, plus attorney's fees (§ 535.300(5)).

Can a Tenant apply the security deposit to last month's rent?

No right to do so exists under Missouri law. Our lease expressly prohibits it. If you choose to allow it, inspect the property for damages first — the odds of collecting anything additional once the deposit is consumed are slim.

Is interest required on the security deposit?

No. Missouri does not require Landlords to pay interest on security deposits. See our Interest on Security Deposit guide for details.

Notice of Security Deposit Withholding — Itemized statement of deductions

Security Deposit — Mo. Rev. Stat. § 535.300

⚖️ Disclaimer — This article is for general informational purposes only and should not be considered legal advice or a legal opinion on any specific case or situation. It does not create an attorney-client relationship. We make no guarantees as to accuracy, completeness, or changes in the law.