In Texas, most residential leases require the tenant to pay a security deposit. A security deposit is designed to protect the landlord against property damage caused by a tenant’s negligence or carelessness. In most cases, the security deposit is equivalent to one month’s rent.
According to the Texas security deposit laws, landlords must follow specific rules when handling a tenant’s security deposit. Proper procedures for managing security deposits are crucial. If they don’t, there are bound to be consequences. For help with managing your property in Lubbock, Texas contact us today and see how we can give you the peace of mind you deserve.
Here is a quick FAQ on the Texas security deposit law:
1. Do Texas security deposit laws put a cap on the amount a landlord can charge a tenant for the security deposit?
No, this law does not set a limit. Landlords have the right to charge whatever amount they see fit for the security deposit.
While this may be the case at a state level, city and county law may have a limit on the exact security deposit amount. Landlords may also negotiate the amount according to certain criteria, such as the tenant’s rental history, the potential for normal wear and tear, and the terms of the rental agreement, as outlined under the Texas Property Code. Additionally, if the tenant surrenders the property, the security deposit may be adjusted based on these factors.
2. Do landlords in Texas have to provide written notice after receipt of tenants’ security deposit?
No, they don’t. Landlords are not required by law to give Texas tenants a written receipt for the security deposit.
3. How should landlords store a tenant’s deposit in Texas?
Unlike other states, Texas security deposit law doesn’t dictate how landlords should store a tenant’s refundable security deposit.
4. What if the landlord sells the Texas property?
To protect the tenant, the previous owner must forward all security deposits to the new landlord when a property changes hands during the lease period.
Under Texas law, the previous landlord will still be held liable for the security deposits in Texas so long as the tenants haven’t received a Change of Management/Ownership notice from the new owner or provided a forwarding address. Under the Texas Property Code and other relevant rental law, once the notice is given, the new owner is solely responsible for the security deposit, even if there is unpaid rent.
The notice should state the new Texas landlord is now in possession of the security deposit and also state the exact amount of the security deposit received.
5. Do Texas landlords and tenants need to perform a walk-through inspection?
No, it isn’t required. A walk-through inspection is when both the tenant and the landlord go through the rental unit to inspect it. This is because tenants need to leave the rental in the same condition as when they moved in.
6. Can a landlord keep all or part of the security deposit?
Yes, they can. Like in other states, Texas landlord-tenant law specifies that a landlord has a right to keep all or part of the tenants’ security deposits depending on certain situations.
A landlord may keep all or some of the security deposit at the end of the tenancy if:
- The tenant breaches the written lease, and the landlord suffers financially as a result of the breach.
- The tenant fails to give a written notice of lease termination.
- The tenant breaks the lease agreement early. The landlord may subtract the cost of finding a replacement tenant from the security deposit.
- A tenant uses their security deposit as last month’s rent. Tenants may not only be liable for the landlord’s reasonable attorney’s fees but they may also need to pay the landlord three times the amount of rent.
- There’s damage to the landlord’s rental property. Damage is different from normal wear and tear of the dwelling.
| Examples of normal wear and tear | Examples of property damage |
| Tarnish on bathroom fixtures | Keys not returned at the end of the tenancy |
| Dirty grout | Missing outlet covers |
| A few small nail holes in the walls from hanging pictures | Multiple holes in the walls |
| Loose door or handles on kitchen or bathroom cabinets | Broken windows, doors, bathroom vanity, and so on. |
| A small amount of mildew forming in grout lines in the shower tiles | Extensive water damage to hardwood floors |
| A few small stains on the carpet | Huge stains on the carpet |
| Damaged or missing smoke detectors |
Understanding the difference between normal wear and tear and excessive property damage is vital to avoid legal issues in justice court.
7. What happens when a tenant signs a lease, pays the deposit but doesn’t move in?
In this case, the landlord has a right to mitigate. Texas law states that a landlord can charge reletting fees of up to 85% of one month’s rent. These fees are meant to cover costs. Or they can deduct their actual costs and any related fees to find new tenants when a lease isn’t fulfilled, provided the tenant has given a forwarding address for correspondence.
The landlord may also need to pay for any costs incurred during the process, and these fees are often covered by the forfeited deposit. If the tenant leaves the premises before the end of the lease, the landlord has a right to find new tenants to occupy the premises and avoid further financial loss. The tenant will be responsible for any amounts due until the premises are re-rented, including the obligation to pay rent during that period.
Are pet deposits treated the same as a security deposit?
Under Texas law, a Texas landlord can charge a separate pet deposit. This special deposit is specifically for damages caused by a pet. It’s important to note that a landlord cannot deduct from this pet deposit for non-pet-related damages. Similarly, a landlord cannot use the main security deposit to cover pet damages unless the pet deposit is exhausted or the lease explicitly allows it.
This separate deposit is often not a fee, but a refundable deposit meant to cover specific expenses. The rules for returning this deposit are similar to the primary security deposit. The landlord must account for any money they deduct from the deposit. Any non-refundable pet fee must be clearly stated in the lease and is a separate payment from the refundable security deposit.
9. When should a tenant expect their security deposit back?
Unless the security deposit was claimed to cover loss or damage, under Texas law, a landlord must refund the refundable security deposit at the end of the lease.
From the date the tenant moves out of the rental unit, the landlord has 30 days to refund the security deposit to the tenant. The only exception to this general rule is if the landlord doesn’t have the tenant’s forwarding address. In this case, the landlord must wait until the tenant provides the tenant’s forwarding address.
A Texas landlord can also demand an advance notice of the move as a condition for refunding the security deposit. That being said, a landlord can only do this if this requirement and any associated fees are highlighted in the lease or rental agreement.
If there is damage to the property, the landlord has the right to make deductions from the Texas security deposit, provided they include an itemized list of expenses. In this case, the damages must be over normal wear and tear. Cosmetic issues like faded paint or lightly scuffed floors are typically considered normal wear and tear.
Property damage that warrants security deposit deductions, which is distinct from normal wear and tear, includes repairs for broken appliances, missing fixtures, or significant damage to walls or floors. The landlord may also make deductions for cleaning costs if the unit was not left in an acceptable condition. Any associated cleaning fees may result in deductions.
If the tenant has not met the required maintenance or left unpaid rent, these amounts and any late fees could also be included in the deductions from the deposit.
To protect their right to these deductions, a landlord must provide an itemized list of deductions within the required time, they may be liable for penalties under Texas law. Property damage that warrants security deposit deductions includes:
- Huge stains on the carpet
- Multiple holes in the walls
- Broken windows and doors
On or before the 30-day date, a landlord must send the tenants an itemized list of such damages, their estimated cost of repair, and the balance of the tenant’s security deposit. If the landlord fails to do so, then they forfeit the right to make any deductions from the security deposit.
The landlord may also need to pay for the financial loss the tenant has suffered in his or her efforts to recover the deposit from the landlord.
However, the landlord doesn’t need to give the tenant the list of items to be deducted if:
- There’s no disagreement regarding the amount of deposit owed, and if
- The tenant owes rent when he or she moves out of the rental unit.
Wrongfully withholding a security deposit may attract penalties in Texas. If a landlord fails to return the deposit or provide an itemized list of deductions within the required time frame, these penalties usually include paying for the tenant’s attorney fees, plus paying the tenant three times the security deposit amount.
The Texas Property Code is very specific about the accounting for a security deposit. When a landlord makes deductions, they must provide the tenant with a detailed written notice that lists each individual deduction from the deposit. It is not enough to simply state a total amount withheld from the deposit. For each repair, the landlord must specify the charge.
If a tenant disputes these expenses, they might ask for a receipt for the repairs to verify the costs. Failure of the landlord to provide this detailed accounting can invalidate their claim to any portion of the security deposit. The tenant may have to pay for excessive damage, but the landlord must properly account for how the security deposit was used.
This overview of the Texas security deposit laws is only meant to be informational. For specific questions, please seek help from a qualified Texas attorney. You could also review section 92.101-109 of the Texas Property Code for the full scope of the Texas law.
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