Since March of 2020, St. Louis has had nearly 50,000 eviction filings.
No landlord wants to evict a tenant. It's when your tenant makes your life more stressful or puts your investment property at risk that you have to take serious action. That said, there are various methods landlords can employ to deter tenants from engaging in poor behavior that might lead to eviction.
It starts with tenant screening, but that's not what we're here to discuss today. In this post, we'll look at security deposits and explain how collecting them can protect your property from tenant issues - intentional or otherwise. Keep reading, and you'll have property management tips to put your mind at ease.
What Are Security Deposits?
Security deposits are, at their core, a form of insurance against poor tenant behavior. You collect them at the start of a new tenancy, usually in conjunction with a move-in inspection. During this inspection, you go around the property with the new tenant and note existing wear and tear.
When the tenancy is over, you perform the same inspection. If there's any new and significant damage, you deduct the cost of repairs from the tenant's security deposit - this is the most common deduction. Other typical deductions are for unpaid rent, cleaning costs, and unpaid utilities.
Landlord Regulations in St. Louis
It's important to obey Missouri rental laws when collecting security deposits. In this state, landlords can request up to twice the amount of a single month's rent as a security deposit.
If your monthly rent is $1,500, your security deposit can be as much as $3,000. The higher your security deposit, the more difficult it'll be to attract good tenants because it can be a major expense for many. Asking for more than is legally allowed violates landlord-tenant rights and is punishable by law.
Collecting and Returning Security Deposits
Landlords have up to 30 days from the end of the tenancy to return some or all of the security deposit. If you're making deductions, give the tenant an itemized list and the remainder of the deposit.
It's also good practice to keep proof of why you've made the deduction and any receipts for repairs, cleaning costs, etc. Your tenant may want to challenge your deductions. If found to be invalid, you could be subject to severe financial penalties.
For that reason, landlords need to understand the difference between normal wear and tear and actual damage. Rental units tend to go through more wear and tear than typical properties, but things like holes in walls, broken windows, and ripped-up carpets are considered damage.
Navigating the St. Louis Rental Market With Help
Navigating the St. Louis rental market and security deposits can be tricky. If you need help running your rental property the right way, hiring a great property manager will help.
PMI STL Metro is St. Louis' top property management company and part of the nation's top property management firm. We offer a wide range of helpful services, including tenant screening/selection, property maintenance, and tenant management. Contact us today to learn how we can help you run your rental more effectively in 2024.
