Security Deposits 101 – What St. Louis Landlords Need to Know

selectstl • June 7, 2016

There are legal requirements to how much of a security deposit you collect and how long you wait to return it to the tenants after a lease period has ended. Landlords are often unsure about how to handle security deposits, so make sure you know and comply with the law.

Collecting a Security Deposit

The first task is to determine how much of a security deposit to require from your tenants. The state of Missouri allows you to collect no more than the equivalent of two months of rent. So, if your monthly rent is $1,000, your security deposit cannot be any higher than $2,000. When you’re trying to decide how much to ask for, you need to consider a couple of things that will be different from tenant to tenant. Consider their credit history and their rental history. These things will impact whether you need to request more or less in a deposit. You also have to consider whether they have pets. Most landlords will collect a higher deposit when tenants are moving into the property with dogs and cats.

Holding the Security Deposit

At Select Leasing & Management , we collect the security deposit when the tenants sign the lease. Once we have the funds, we turn them over to the property owner. You’ll need to hold them until the end of the lease period. Use a separate account for these funds. This is not your money; it’s your tenant’s money.

Returning the Security Deposit

When we meet with the tenants for the move in process, we go through the condition of the house and explain that we expect to receive the property in the same condition when they move out. We record any damages or defects that are outside of normal wear and tear. At the end of the lease, we meet with the tenants again and go through the house once more. We compare the property’s condition at move in to the way it looks at move out. If everything looks good, we let the owner know that it’s okay to return the security deposit. In Missouri, you have to return the money within 30 days of a tenant’s move out.


If you have any questions about how to handle security deposits at your rental property, please contact us at Select Leasing & Management.

Share this post

Landlords Must be Prepared for Emergencies. Here’s How a Property Management Company Can Help

By Brett Murray • April 2, 2025
Rental property emergencies can take many forms, from nuisances like burst water pipes to life-threatening fires or natural disasters. Regardless of the severity of the emergency, landlords must be prepared to respond quickly and decisively to ensure tenant safety and to minimize property damage. Emergency preparedness for landlords who self-manage their rentals can be a daunting task. Entrusting a property management company instead is the perfect solution for landlords who are overwhelmed by the prospect. These professionals have the expertise to anticipate a variety of scenarios, plan and organize resources, and know what to do if and when a crisis arises. Here’s how they do it.

How a Property Manager Can Help You Avoid a Slip and Fall Lawsuit

By Brett Murray • March 6, 2025
Rental properties must be kept safe to avoid a slip and fall lawsuit. Hiring a property manager can take some of the pressure off of a landlord’s shoulders.

Landlords: Here’s How to Deal with Rental Property Damage

By Brett Murray • February 6, 2025
Rental property damage beyond normal wear and tear can stretch a landlord’s budget and patience. Know when and how to approach tenants about recouping your costs.
Show More