Disclaimer: This blog post is meant for informational purposes only and does not constitute legal advice. Consult with a licensed attorney in Missouri for specific legal guidance.
Missouri’s rental market holds a lot of opportunity for property managers. To take advantage of that opportunity, property managers need to build strong and transparent tenant relationships, a process that starts with crafting comprehensive lease agreements.
This guide explores the components that go into a Missouri lease agreement, local laws that affect lease agreements, and various other factors property managers should be aware of.
We’ve also created a sample Missouri lease agreement template that you can download for free and customize to meet your specific needs.
What Is a Missouri Lease Agreement?
A Missouri lease agreement is a legally binding contract that outlines the terms and conditions of renting a residential property in the state. The primary purpose of a lease agreement is to establish the rights and responsibilities of both the owner and the tenant, helping everyone understand their obligations and expectations.
By defining these terms clearly, a Missouri lease agreement helps prevent misunderstandings and disputes, fostering a professional and respectful rental relationship. For property management companies, having a well-drafted lease agreement is fundamental to managing rental properties effectively and maintaining a positive relationship with tenants.
Who Needs a Missouri Lease Agreement?
A Missouri lease agreement has clear benefits for anyone involved in renting residential properties in the state of Missouri. The main beneficiaries are property managers, owners, and tenants.
For property managers, a lease agreement provides a legal framework that outlines the terms and conditions of the rental arrangement. It sets expectations for rent payment property maintenance, and sets out a clear process for addressing any disputes or breaches.
Property owners benefit in similar ways that property managers do. Their property is protected and the revenue they earn from rent and additional fees is clearly defined in an effective agreement.
For tenants, lease agreements provide tenants with a clear understanding of their rights and responsibilities, which helps to avoid misunderstandings and disputes. They offer tenants legal protection against unjust eviction and rent increases, as well. With a written agreement in place, tenants have a document they can reference in case of any disputes.
Types of Missouri Lease Agreements
There are several types of lease agreements used in Missouri, each tailored to different rental situations. Understanding these can help property managers choose the right agreement for their needs.
Fixed-Term Lease Agreement: This is the most common type of lease agreement, typically lasting for 12 months. It outlines the terms and conditions of renting a residential property, including rent amount, due date, and maintenance responsibilities. Both parties are bound to the conditions for the duration of the term, after which the lease may be renewed.
Month-to-Month Lease Agreement: This arrangement offers flexibility for both parties, as it renews monthly. Either the owner, property manager, or tenant can terminate the lease with a 30-day notice. This type of lease is ideal for tenants who may need to move frequently due to work or for owners who want the flexibility to change rental terms.
Sublease Agreement: This allows a tenant (the sublessor) to rent out all or part of the property to another party (the sublessee). It’s important to note that many primary lease agreements contain clauses prohibiting subletting without the owner’s consent. Subleasing can be useful for tenants who need to move temporarily but want to retain their lease.
Roommate Agreement: This agreement is used when multiple tenants share a rental property. It outlines the responsibilities of each roommate, including rent payment, utilities, and household chores. This helps to avoid conflicts and keeps all roommates on the same page regarding their living arrangements.
Commercial Lease Agreement: While our focus is on residential properties, it’s worth noting that commercial leases exist for business rental situations. They have different stipulations and considerations based on the nature of commercial activities, such as the type of business, lease duration, and property modifications.
What Should a Missouri Lease Agreement Include?
When drafting a Missouri lease agreement, it’s important to include several key components to protect the interests of both the property management company and the tenant. Here are the essential elements:
Parties Involved
Every lease agreement should begin by identifying the parties involved. Typically, this includes the owner, or lessor (the individual or entity offering the property for rent—this could be a private owner or a property management company), and the tenant, or lessee (the individual or party renting the property). Be sure to use full legal names, eliminating ambiguity regarding the identities of the parties.
Lease Duration Dates
The start and end date of the lease term should be mentioned explicitly. Whether it’s a fixed-term lease (12 months, for example) or a more flexible month-to-month arrangement, defining the duration prevents any uncertainties regarding the lease’s expiration or renewal terms.
Rent and Security Deposit Information
This section should detail:
- Rent Amount: The monthly rent payable by the tenant
- Due Date: The day of the month by which rent is due
- Payment Method: Whether it’s through check, bank transfer, or other means
- Security Deposit: In Missouri, there is no statutory limit on security deposits. However, the owner must return the deposit within one month of the tenancy’s termination.
- Deductions: Conditions under which deductions can be made from the security deposit, such as property damage or unpaid rent
Occupancy Limits
This section specifies that only the individuals listed on the lease reside in the property by clearly laying out the parameters set by the owner. It is important to include this information to prevent overcrowding and ensure that the property is used in accordance with local regulations.
Property Management Company and Tenant Responsibilities
It’s equally important to outline the duties of both the property manager and the tenant. Property manager responsibilities span all aspects of taking care of a property, from keeping areas up to health and safety standards to collecting rent in a timely manner. Typically, tenants are responsible for keeping the property clean, informing the property manager of any damages, and not engaging in any activity that could damage the property or disrupt neighbors.
Pet Policies
It helps to have a clear pet policy. First, state whether pets are allowed. If they are, specify any restrictions regarding type, size, or breed. Some owners require a separate pet deposit to cover potential damages caused by pets. If pets are allowed, list any rules regarding their stay, such as leash requirements in common areas.
Missouri Lease Agreement Addenda and Disclosures
Below are key addenda and disclosures that should be part of a Missouri lease agreement. This list is not exhaustive, so consult a legal professional if you’re unsure about what to include in your own agreements.
Lead-Based Paint Disclosure
For properties built before 1978, federal law requires owners to disclose any known lead-based paint hazards. This includes providing tenants with an EPA-approved pamphlet on lead poisoning prevention and including specific warning language in the lease regarding lead-based paint1. This disclosure is crucial for protecting tenants from potential health risks associated with lead exposure.
Methamphetamine Contamination Disclosure
If there is any known methamphetamine production, use, or storage on the rental property, owners should disclose this information to tenants and certain requirements are mandated by Missouri law. This disclosure is necessary to inform tenants of potential health hazards and to comply with state regulations.
Owner’s Name and Address
Missouri leases should also contain the name and address of the owner or authorized agent. This information facilitates smooth communication of any important legal notices and lets tenants know who to contact in case of issues or emergencies.
Optional Disclosures and Addenda
While not required by Missouri law, certain optional disclosures and addenda can assist with tenant management and help limit owner liability. These may include:
- Asbestos Disclosure: Informing tenants about any asbestos hazards related to the property
- Bed Bug Disclosure: Notifying tenants of any history of suspected bed bug infestation and reminding them of their obligation to report suspected infestations immediately
Consequences for Excluding Mandatory Disclosures
Failing to provide the necessary disclosures can lead to several issues, including:
- Legal Disputes: Tenants can challenge the lease, leading to potential court cases.
- Financial Repercussions: Courts may order owners to pay for damages or return security deposits in full.
- Breach of Trust: Omissions can harm the owner-tenant relationship, affecting future lease renewals or referrals.
Missouri Lease Agreement Laws and Regulations
Understanding the laws and regulations surrounding lease agreements in Missouri is important for property managers. Here are some key considerations to pay attention to, but be sure to contact a legal expert for more specifics:
Security Deposits
States often have specific requirements on security deposit maximum amounts, return time periods, and penalties for failing to comply with these regulations. There may also be requirements on where you store security deposits and what you can withhold. Generally, deposits should be returned in a timely manner and portions of the full amount can be withheld for unpaid rent and damages beyond normal wear and tear. Check Missouri law for details.
Right of Entry
Regarding an owner’s right of entry, it is considered best practice to provide at least 24 hours’ notice, though state law may require a longer notice timeframe. Owners are typically allowed entry for reasons such as performing repairs, conducting inspections, or showing the property to prospective tenants or buyers. Emergencies, where immediate access is necessary, are often an exception, but be sure to consult your local laws for the most current and specific requirements.
Grace Period
There are no grace period laws in Missouri, meaning that rent is due at the time agreed upon in the lease agreement. However, there is an exception for mobile homes. This means that tenants in manufactured homes have an additional five days to pay their rent without incurring late fees.
Late Fees
Missouri state law may not limit the amount that an owner can charge in late rent fees but, if an owner decides to charge a late fee, the amount should be mentioned in the lease agreement. This keeps tenants aware of the potential charges for late rent payments and can plan accordingly.
Taking the Next Steps with Your Missouri Lease Agreement
By including the components we outlined above and staying aware of federal, state, and local rental laws, you’ll be well on your way to creating effective, comprehensive lease agreements.
You can download our free Missouri Lease Agreement sample template to get one step closer to signing leases that bring in reliable, long-term revenue for your business.