05 May What’s Next After Buying Your First Rental Property in St. Louis, MO (And How to Succeed)

Buying your first rental property in St. Louis is a big step — congratulations! You’ve taken the leap into real estate investing in a city rich in history, culture, and opportunity. St. Louis is quickly becoming a hotspot for investors thanks to its affordable property values and strong rental demand. But purchasing the property is just the beginning. Now it’s time to turn your investment into a long-term asset that generates steady cash flow.

Here’s a comprehensive step-by-step guide on what to do next.

What’s Next After Buying Your First Rental Property in St. Louis, MO

1. Secure Proper Insurance Coverage

As a landlord, standard homeowner’s insurance won’t cut it. You’ll need:

• Landlord insurance, which covers the building, liability, and loss of rental income in case the property becomes uninhabitable due to a covered event.

• Optional coverage like rent default insurance or umbrella liability insurance depending on your risk tolerance.

Tip: Shop around for a local insurance agent familiar with Missouri rental property requirements.

2. Understand Local Landlord-Tenant Laws

Missouri has specific regulations you’ll need to follow, including:

• Limits on security deposits (maximum of two months’ rent)

• Requirements for returning the deposit (within 30 days of tenant move-out)

• Obligations for habitability and repairs

• Notice periods for eviction, lease termination, or rent increases

Helpful Resource: Missouri Revised Statutes Chapter 535 (Landlord and Tenant Law)

Consider working with a local attorney or property management company to ensure compliance, especially if you’re new to rental investing.

3. Decide: Self-Manage or Hire a Property Manager

St. Louis offers a range of affordable property management companies. Hiring one can help you:

• Market the property and find tenants

• Handle maintenance and repairs

• Enforce lease agreements

• Collect rent and handle accounting

If you choose to self-manage, prepare to:

• Respond to emergency calls

• Conduct showings and tenant screenings

• Maintain detailed records of income and expenses

Tip: New landlords often start by self-managing and hire a property manager once they scale up.

4. Prepare the Property for Rent

First impressions matter. Make sure your unit is:

• Clean and move-in ready

• All appliances are in working order

• Paint is fresh and neutral

• Landscaping is trimmed (if applicable)

Invest in quality photos and staging, especially for online listings — this can shorten vacancy time and attract better tenants.

5. Set the Right Rental Price

Look at rental comps in your neighborhood. Some key St. Louis neighborhoods with strong rental markets include:

• South City: Affordable properties and rising tenant demand

• Central West End: Popular among medical students and young professionals

• Tower Grove: Known for its walkability and historic charm

• North County: Budget-friendly options, but do your due diligence on tenant quality and property condition

6. Screen Tenants Carefully

Tenant selection is crucial. Don’t rush this process. Screen for:

• Credit history

• Criminal background

• Income (aim for 3x rent)

• Rental history and references

Use a trusted service like TransUnion SmartMove or RentPrep to handle this efficiently.

Red Flag: Never skip the background check — one bad tenant can cost you months of rent and stress.

7. Create a Clear, Legally Sound Lease

Your lease should include:

• Rent amount and due date

• Security deposit terms

• Maintenance responsibilities

• Pet policy

• Late fees

• Rules on smoking, guests, and noise

Missouri doesn’t require leases to be notarized, but make sure everything is in writing and signed by both parties.

Bonus Tip: Consider adding clauses for things like yard maintenance or utilities if they’re shared.

8. Plan for Repairs and Maintenance

Even if your property is new or recently renovated, issues will arise. Create a vendor list with:

• A 24/7 plumber

• Electrician

• HVAC technician

• General handyman

Also, set aside 10–15% of your monthly rent for a maintenance reserve fund.

9. Track Finances from Day One

Stay organized with:

• Rent tracking spreadsheets

• Expense logs (repairs, insurance, utilities, taxes)

• A separate business bank account

You’ll also want to prepare for tax time. Some deductions include:

• Mortgage interest

• Depreciation

• Repairs and maintenance

• Property management fees

• Mileage or travel to/from the property

Tip: Consult with a St. Louis-based CPA who understands rental real estate.

10. Think Long-Term: What’s Your Next Move?

Once your first property is stabilized and generating positive cash flow, think about scaling your portfolio.

Options include:

• Buying another single-family home

• Converting to short-term or mid-term rentals (especially near hospitals or universities)

• 1031 Exchange to defer taxes while upgrading to a larger asset

Watch the Market: Neighborhoods like Dutchtown, Bevo Mill, and The Grove are seeing revitalization and could offer strong appreciation in the next 5–10 years.

Final Thoughts

Buying your first rental property in St. Louis is a big achievement — but the real work (and reward) comes after the purchase. With the right systems, support, and mindset, you can turn a single property into a stepping stone toward long-term financial freedom.

Whether you’re looking to self-manage or grow into a multi-property landlord, St. Louis offers both opportunity and community for real estate investors. And if you’re looking for local expertise to guide you through those next steps, the team at Hermann London is here to help. With deep roots in St. Louis and a commitment to your success, they’re a trusted partner in turning real estate goals into reality.