Disclaimer: The contents of this document are intended solely for informational use and do not serve as legal counsel. The author is not a licensed attorney, and the information provided should not be interpreted as a replacement for expert legal advice.
Missouri’s legal landscape is changing for landlords in 2024. And with recent state government activity, aspects of landlord-tenant law are shifting towards the landlord’s favor. Senate Bill 895, set to go into effect in August, and House Bill 2385, passed by the House and currently making its way through the Senate, are both causing these shifts.
It’s a dynamic time for Missouri landlord-tenant law. If you’re running a rental property here in Kansas City or elsewhere in the state, you must pay attention to these updates and how they relate to other changes to state law in recent years. Here are the full details on these new and potential changes.
Senate Bill 895: Key Provisions and Impact
Senate Bill 895 (SB895) was passed earlier this year and signed into law by Governor Mike Parson in July. The laws will take effect on August 28th, 2024.
Background and Purpose
SB895 was introduced to modify existing landlord-tenant laws within the state of Missouri. There are two provisions within this bill. The first is concerning eviction moratoriums within Missouri. The second deals with the transfers of title for rental properties and how they are filed.
Major Changes Introduced
The first provision of the bill states “that no county, municipality, or political subdivision shall impose or enforce a moratorium on eviction proceedings unless specifically authorized by law.” An eviction moratorium is when, temporarily, landlords are legally prohibited from evicting tenants for non-payment of rent. This makes it so evictions cannot be halted unless at a state or federal level.
The second provision states “that all transfers of title of real property for rental properties with outstanding collectible judgments shall be filed in the circuit court within 30 days after transfer.”
Impact on Landlords
The first half of this bill is the most beneficial for landlords. It effectively makes it so that a county or city cannot freeze evictions for any reason. This is something that was seen across the country during the height of the Covid pandemic. While not making eviction moratoriums impossible, it still reduces the chances in Missouri. This bill plus an eviction protection plan can help avoid unnecessary costs.
Meanwhile, the provision dealing with the transfer of titles is more niche and only deals with specific types of title transfers. It simply means that if you purchase, sell, or inherit a rental property with outstanding judgments, you must file it in court within 30 days of the title transfer.
House Bill 2385: Key Provisions and Impact
House Bill 2385 (HB2385) was passed by the House earlier in 2024 but is still awaiting the Senate’s vote. That means it is not currently passed into law; however, it is receiving considerable support from those in the real estate industry. If it passes the Senate, all that will remain is the Governor’s signature to pass into Missouri state law.
Background and Purpose
Most states lean one way or another when it comes to landlord-tenant law while trying to strike a healthy balance between the two sides. HB2385 would lean heavily in the landlord’s favor if passed. The bill is comprised of 4 different provisions that all target the removal of different ways landlords can be limited when selecting tenants.
Major Changes Introduced
This bill would enforce that no county or city can enact any ordinance that does any of the following:
- “Prohibits landlords from refusing to lease or rent a privately-owned, single-family or multiple-unit residential or commercial rental property to a person because his or her lawful source of income includes funding from a federal or other housing assistance program.”
- “Restricts a landlord's ability to use or consider income-qualifying methods, credit scores, credit reports, eviction or property damage history, or criminal history, according to his or her own customarily applied criteria, or requesting such information to determine whether to rent or lease a property to a prospective tenant.”
- “Limits the amount of money for a security deposit.”
- “Requires tenants to automatically receive a right of first refusal.”
Impact on Landlords
If passed, this bill would implement sweeping changes to how landlords approach tenant placement and screening for their rental properties in the state. Let’s break down the potential impacts of each of the provisions:
- This would prevent city governments from banning landlords from disqualifying tenants based on receiving Section 8 housing assistance. Kansas City, MO just passed an ordinance preventing this action on January 25th of this year. If HB2385 passes, this would be the property owner’s decision.
- Furthering this, the second provision would also make it so Missouri landlords cannot be restricted from using credit reports, income, rental history, or criminal background checks in their screening process. These two provisions in particular give the landlord freedom in how they qualify their tenants.
- Missouri currently has a statewide limit on security deposits. Landlords cannot charge more than the equivalent of two month’s rent. If this bill passes, city governments cannot impose their own, stricter limitations.
A right of first refusal regarding leases can refer to two different things. A right of first refusal to lease means if a space on the property becomes available to lease, a tenant with this clause in their lease gets first rights to lease the space if they choose.
A right of first refusal to purchase means the same for if the property goes up for sale and an offer from a third party is made. The tenant gets the ability to match the purchase offer.
These clauses are most common in commercial leasing. The final provision of HB2385 removes the possibility of these being legally required for lease agreements.
Stay Updated on Missouri Landlord-Tenant Laws
As HB2385 continues through the Senate, we’ll be sure to continue updating landlords on what they need to know when it comes to the law. It’s a dynamic time for Missouri landlord-tenant law. It’s important to stay on top of your rights, freedoms, and limitations as a rental property owner.
If you need a partner in rental property management, SCUDO has you covered. We take pride in representing our property owners here in Kansas City, MO to the absolute highest standards. We offer comprehensive services to keep your property highly profitable through a shifting legal landscape.
