Texas Security Deposit Law

Texas Security Deposit Law

Author: Kasee Godwin
Date: 01.10.2023

Texas Security Deposit Law: A Guide

Texas Security Deposit Law is an essential aspect of the landlord-tenant relationship in Texas, providing clear guidelines for both parties. Understanding these laws ensures a fair and transparent process for handling security deposits.

Maximum Security Deposit Amount Allowed

Texas has no statutory limit on the amount a landlord can charge for a security deposit. This gives landlords the flexibility to set deposit amounts based on their assessment of risk or property value​.

Timeframe for Refund

Landlords in Texas must return the security deposit to the tenant within 30 days after the tenant surrenders the premises. If there are deductions for damages or other lease violations, landlords must provide an itemized list of these deductions​​​​.

Disclosure of Security Deposit Location

Texas law mandates landlords to store tenants’ security deposits in a separate trust account in a Texas-based bank or financial institution. Landlords are required to inform tenants about where the deposit is being held​​.

Interest on Security Deposits

Unlike some states, Texas landlords are not required to pay interest on security deposits​​.

Documentation at Move-In and Move-Out

While Texas law does not explicitly require landlords to provide documentation of the property’s condition at move-in, it’s a best practice for both parties to document the state of the property. This can help resolve disputes about property conditions and deductions from the security deposit at move-out​​.

Non-Refundable Fees

Landlords in Texas can charge non-refundable fees in addition to the security deposit, but this must be agreed upon in writing by the tenant​​.

Deductions from Security Deposit

Landlords can withhold portions of the security deposit for various reasons, including non-payment of rent or utility bills, damage to the property beyond normal wear and tear, and cleaning costs. Tenants must understand these potential deductions and comply with their lease terms to avoid unnecessary deductions​​.

Change in Property Ownership

If a rental property changes ownership, the security deposit must be transferred to the new owner, who then becomes responsible for its return under the same conditions as the previous owner​​.

Tenant Rights and Recourse

Tenants have the right to receive their security deposit within the stipulated timeframe and should receive an itemized list of any deductions. If the landlord fails to comply, tenants may take legal action, potentially recovering up to three times the amount wrongfully withheld, plus additional fees​​.

These regulations aim to protect landlords and tenants, ensuring a fair and transparent handling of security deposits. Tenants should familiarize themselves with these laws, and landlords should ensure compliance to maintain positive relationships and avoid legal complications.

Disclaimer

Qira aims to keep this information as up-to-date as possible. The content provided here is informational and should be different from legal counsel. Please refer to the relevant government sources to check for any changes or updates to the law.

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Kasee Godwin

Position: Director of Marketing
Social Networks

Kasee is the Director of Marketing for Qira. She has nearly 15 years of experience in the real estate marketing industry, including 10 years on the client side. In her spare time, she enjoys reading science fiction, exploring new wineries, and fostering Golden Retrievers.

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