Overview
Texas security deposit laws help ensure that both landlords and tenants understand their rights and responsibilities. These rules outline how deposits must be collected, stored, and returned to avoid disputes.
Under Texas Property Code § 92.101 to § 92.109, landlords must comply with legal requirements for managing security deposits. Violations may result in financial penalties and the forfeiture of the deposit.
This guide covers:
How much landlords can charge
Where deposits must be stored
Rules for returning security deposits
Penalties for non-compliance
Related Statute: Tex. Prop. Code § 92.101–92.109
1. Security Deposit Limits & Storage Requirements
Maximum deposit: Texas law does not impose a limit on the amount landlords can charge for a security deposit.
Storage requirements: There is no requirement to hold deposits in a separate or interest-bearing account. However, landlords must safeguard tenant funds until they are returned.
Tenant notification: Landlords are not required to disclose where the deposit is held.
Law Reference: Tex. Prop. Code § 92.103
2. Security Deposit Returns & Allowable Deductions
Return deadline: Landlords must return the deposit within 30 days after the tenant vacates the unit.
Permissible deductions: Landlords may deduct for unpaid rent, damages beyond normal wear and tear, and other expenses specified in the lease.
What landlords cannot deduct: Normal wear and tear, such as faded paint or worn carpet, may not be deducted.
Itemized statement required: If any amount is withheld, landlords must provide a written itemized list of deductions with the remaining deposit.
Law Reference: Tex. Prop. Code § 92.104
3. Interest Payments & Documentation Requirements
Interest payments: Texas law does not require landlords to pay interest on security deposits.
Move-in condition report: Not required, but both landlords and tenants are encouraged to document the unit’s condition at move-in and move-out.
Tenant review period: Tenants should review the premises upon move-in and retain evidence of its condition.
Failure to provide documentation: If a landlord fails to return the deposit or provide an itemized list within 30 days, they forfeit the right to retain any portion.
Law Reference: Tex. Prop. Code § 92.109
4. Penalties for Mishandling Security Deposits
Texas law includes penalties for landlords who mishandle deposits.
Failure to return the deposit within 30 days may result in the landlord being liable for $100, plus three times the portion wrongfully withheld, and reasonable attorney fees.
Failure to provide an itemized statement or written explanation of deductions may lead to similar penalties.
Law Reference: Tex. Prop. Code § 92.109
Key Takeaways
There is no limit on the amount of a security deposit in Texas.
Landlords must return deposits within 30 days, and provide a written itemized statement if any deductions are made.
Interest is not required to be paid, and separate accounts are not mandatory.
Only specific deductions are allowed, and ordinary wear and tear cannot be charged.
Non-compliance may result in triple damages and legal fees.
By understanding and following Texas security deposit laws, landlords can maintain compliance, and tenants can protect their right to a fair and timely return of funds.
Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. Readers should not act or refrain from acting based on any information included in this post without seeking legal counsel or other professional guidance specific to their situation. The information is provided “as is” without any representations or warranties of any kind, express or implied, including but not limited to the accuracy, completeness, or reliability of the content. Laws and regulations may change and vary by jurisdiction.
