House Bill 1862 changes laws on security deposits
Posted On: 11-21-2016 | Posted By: Mark Gingrich, CPA, J.D.
A new Missouri law imposes additional requirements for how landlords handle security deposits. The new law requires security deposits to be held by the landlord for the tenant in a deposit account insured by an agency of the federal government.
The new law goes further for landlords who are not licensed by the Missouri Real Estate Commission. For this group of landlords, the new law requires all security deposits to be held in a trust established by the landlord and deposited in an account in the name of the trustee. These landlords will need to engage their attorney to draft a simple trust agreement to govern the newly required trust accounts.
If you have any questions about how this affects you or your business, please contact your WK advisor at (573) 442-6171 or (573) 635-6196. If you wish to read the full text of the new law, you can find it here.