Key Takeaways

  • Missouri commercial leases are governed by multiple statutes, and landlords must ensure compliance with all applicable chapters in the Revised Statutes of Missouri.
  • Commercial lease agreements should clearly define the lease type, permitted use, rent structure, and responsibilities for repairs and maintenance.
  • Tenants and landlords must understand triple net (NNN), gross, and modified gross lease structures.
  • Tenant improvements, subleasing, and early termination clauses are essential elements in commercial leases.
  • Due diligence, including zoning compliance and property inspections, is crucial before signing a lease for Missouri business space for lease.

A Missouri commercial lease agreement is important if you are leasing a commercial property in the state. This document outlines the terms and conditions of a lease agreement.

Missouri Rental Laws

Understanding the landlord-tenant laws in Missouri will help commercial property managers and landlords prevent problems in the future. Unfortunately, Missouri does not have a codified or comprehensive act or group of rules that outlines how landlords and tenants must legally interact with one another. Many other states do have these laws in place. The roots of the laws between landlords and tenants in Missouri come from medieval English rules and cases determined by the courts in the past few centuries.

Some statutes do exist in the Missouri state laws that outline issues between landlords and tenants. The majority of these are included in three chapters of the Revised Statutes of Missouri (RSMo.) The first is chapter 441, called "Landlord and Tenant.” It includes details about several key matters between landlords and tenants:

  • Expedited evictions (added in 1997)
  • Provisions around leases and terms
  • Heat-related utility service maintenance
  • Charging double the rent after the tenant's contract expires
  • Deficient and inadequate housing
  • Personal property that has been abandoned (added in 1997)
  • The right of the tenant to make repairs and deduct costs from the rent (added in 1997).

In chapter 534 of the RSMo., you can learn more about evicting tenants who remain after their leases have expired or breach the terms of a lease agreement. This section is titled “Forcible Entry and Unlawful Detainer," and it allows for tenants to take legal action against their landlords for wrongful eviction, as well as by landlords against their tenants for unlawful detainer or breach of contract.

The third chapter in the RSMo. is chapter 535, called "Landlord-Tenant Actions." This section outlines the provisions that deal with:

  • Security deposits
  • Rent and possession procedures
  • Disclosures a landlord must make to a tenant.

Security Deposit

A landlord will often charge a security deposit to protect his or her interest in the property. In Missouri, a security deposit cannot be more than the cost of two months' worth of rent. This maximum is outlined in §§ 535.300(1). In §§ 535.300(2), any potential interest on a tenant's security deposit is further clarified. This interest remains in the possession of the landlord.

A landlord should have a separate bank account for security deposits, as the funds paid for security deposits should not be comingled with any other funds. In section 339.105, you can learn more about what funds can be comingled. However, any security deposit a tenant pays should be held in the landlord's trust and deposited in some type of financial institution, such as a credit union or bank, in the trustee's name. If the tenant is to receive any portion of the security deposit back, it must be returned within 30 days of the lease termination date.

Allowed Uses of a Deposit

A landlord may use the security deposit for several reasons:

  • For compensation for damages resulting from the tenant's failure to provide sufficient notice to end the lease agreement. To use a deposit for this reason, a landlord must make a reasonable effort to mitigate these damages.
  • For payment of the rent due.

A landlord must provide a written description, including an itemized list, of the damages and how the deposit was spent, according to §§ 535.300(2)(2). If a landlord fails to comply with the laws around security deposits and withholds the funds unlawfully from the tenant, then the tenant can take legal action and recover up to double the amount that was wrongfully withheld.

Lease, Rent, and Fees

For a commercial lease agreement, the rent is due on the date stated in the terms. If the landlord fails to provide essential services, such as heat or water, the tenant is not legally allowed to withhold rent. However, if this situation does arise, and the utility service company has notified the tenants in a multi-tenant building that has a master meter, the tenant may petition the circuit court's associate division for receivership of the property. This allowance is outlined further in §§ 441.650.

Missouri Commercial Lease Agreement Tips for Landlords

Landlords leasing Missouri business space for lease should:

  • Use a legally vetted lease template tailored to Missouri law.
  • Clearly define lease duration, payment terms, and escalation mechanisms.
  • Require personal guarantees if leasing to new or unestablished entities.
  • Include provisions for periodic property inspections.
  • Require tenants to obtain and maintain appropriate insurance coverage.

By preparing a well-structured lease, landlords can reduce legal risks and protect their investment.

Tenant Due Diligence Checklist

Before signing a lease, tenants should conduct the following due diligence to protect their business interests:

  1. Zoning Compliance: Verify the property is zoned for your business activities.
  2. Building Inspection: Ensure the premises meet health, safety, and building code standards.
  3. ADA Compliance: Confirm accessibility requirements are met if you expect public access.
  4. Insurance Requirements: Understand what types of insurance are required (e.g., general liability, property).
  5. Licenses and Permits: Ensure you can obtain all necessary operational permits for the location.

Failure to perform due diligence can lead to costly complications after lease signing.

Termination and Renewal Clauses

Clear termination and renewal provisions protect both parties in a Missouri business space for lease agreement:

  • Lease Termination: The lease should specify the process for early termination, including notice periods and penalties, if applicable.
  • Renewal Options: Many leases allow tenants to renew at predetermined terms. This benefits tenants who want long-term stability.
  • Holdover Clauses: If a tenant stays after the lease ends, the agreement may convert to a month-to-month lease with increased rent or specific penalties.

Understanding these clauses ensures that business operations aren’t interrupted unexpectedly.

Common Lease Provisions for Missouri Business Tenants

Commercial lease agreements in Missouri typically include clauses that address:

  • Permitted Use: Specifies what kind of business activities are allowed on the premises. Ensure the lease allows your intended operations and complies with zoning laws.
  • Rent Escalation: Details how and when rent may increase, often annually or tied to the Consumer Price Index (CPI).
  • Improvements and Alterations: Establishes who pays for tenant improvements and whether landlord consent is required.
  • Maintenance Responsibilities: Specifies whether the landlord or tenant is responsible for HVAC, structural, plumbing, and other maintenance duties.
  • Subleasing and Assignment: Outlines whether the tenant may sublet the space or assign the lease, and under what conditions.

Types of Commercial Leases in Missouri

When entering into a Missouri business space for lease agreement, understanding the structure of the lease is critical. Commercial leases typically fall under one of the following categories:

  • Triple Net Lease (NNN): The tenant pays base rent plus property taxes, insurance, and maintenance. This is common in retail and industrial spaces.
  • Gross Lease: The tenant pays a flat rent, and the landlord covers all property expenses. More common in office spaces.
  • Modified Gross Lease: A hybrid structure where expenses are shared between landlord and tenant. The breakdown should be clearly defined in the agreement.

These distinctions can significantly impact a business’s operational costs and should be reviewed in detail with legal counsel before signing.

Frequently Asked Questions

  1. What’s the difference between a commercial lease and a residential lease in Missouri?
    Commercial leases are used for business purposes and are less regulated than residential leases. They often include more complex terms and fewer statutory protections for tenants.
  2. Are triple net leases common for Missouri business space for lease?
    Yes, especially in retail or standalone commercial properties. Tenants in triple net leases are responsible for most operating expenses.
  3. Can a landlord increase rent during a commercial lease?
    Only if the lease includes a rent escalation clause. Without it, the rent remains fixed for the lease term.
  4. Is there a legal requirement for lease renewal in Missouri?
    No. Renewal terms must be included in the original lease or separately negotiated before the lease ends.
  5. Can I sublease my commercial space in Missouri?
    Only if the lease allows it. Most commercial leases require landlord approval before subleasing.

If you need help with a Missouri commercial lease agreement, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.