Texas Security Deposit Law

Maximum deposit

Texas sets no limit on how much a landlord may charge as a security deposit (Tex. Prop. Code ch. 92, subch. C). (Tex. Prop. Code §§ 92.101–92.113 (no amount cap))

Return deadline

Landlords must refund the deposit, with an itemized list of any deductions, on or before the 30th day after the tenant surrenders the premises, but need not do so until the tenant gives a written forwarding address (Tex. Prop. Code §§ 92.103(a), 92.107). (Tex. Prop. Code § 92.103(a), Tex. Prop. Code § 92.107, Tex. Prop. Code § 92.1041 (mailbox presumption))

Itemized statement of deductions

A landlord who keeps any part of the deposit must give the tenant the balance with a written description and itemized list of all deductions, unless the only deduction is undisputed unpaid rent (Tex. Prop. Code § 92.104(c)). (Tex. Prop. Code § 92.104)

Interest on the deposit

Texas law does not require landlords to pay interest on security deposits (Tex. Prop. Code ch. 92, subch. C). (Tex. Prop. Code §§ 92.101–92.113 (silent on interest))

Penalty for wrongful withholding

A landlord who in bad faith keeps a deposit owes $100 plus three times the wrongly withheld amount and the tenant's attorney's fees, and missing the 30-day deadline is presumed bad faith (Tex. Prop. Code § 92.109). (Tex. Prop. Code § 92.109)

Where the deposit is held

Texas does not dictate where a landlord keeps a security deposit; the law only requires accurate deposit records and gives the tenant's refund claim priority over the landlord's creditors, including a bankruptcy trustee (Tex. Prop. Code §§ 92.103(c), 92.106). (Tex. Prop. Code § 92.103(c), Tex. Prop. Code § 92.106)

Receipt or written notice of the deposit

Texas imposes no duty to hand the tenant a deposit receipt or tell them which bank holds it; the landlord must simply keep accurate records of every deposit (Tex. Prop. Code § 92.106). (Tex. Prop. Code § 92.106)

Move-in condition checklist

No Texas statute requires a move-in inspection or condition checklist, although the landlord still may not deduct for normal wear and tear (Tex. Prop. Code §§ 92.101–92.113). (Tex. Prop. Code §§ 92.101–92.113)

Pet deposits

Texas landlords cannot charge a deposit or extra fee for a service animal used by a person with a disability, though the tenant remains liable for damage the animal causes beyond reasonable wear and tear (Tex. Hum. Res. Code § 121.003(h)). (Tex. Hum. Res. Code § 121.003(h))

Ordinary pet deposits are unregulated: Texas has no cap on deposit size, so pet deposits are a matter of the lease; the service-animal rule covers 'all housing accommodations'.

Nonrefundable fees

Texas law neither bans nor caps nonrefundable move-in fees; it only treats money intended primarily to secure the tenant's performance as a refundable security deposit (Tex. Prop. Code § 92.102). (Tex. Prop. Code § 92.102)

Small-landlord exemptions

Texas's deposit rules cover every residential lease with no carve-out for small or owner-occupant landlords (Tex. Prop. Code § 92.101). (Tex. Prop. Code § 92.101)

§ 92.101: 'This subchapter applies to all residential leases.'

Deposit alternatives and installments

A Texas landlord may offer a recurring fee in lieu of a security deposit, but must also offer a regular deposit, explain both options in writing and cannot use the tenant's choice when screening the application (Tex. Prop. Code § 92.111). (Tex. Prop. Code § 92.111)

The fee agreement must be signed by both sides, the fee is payable with each rent payment, and the tenant may switch to a deposit at any time; if the fee buys insurance, the landlord must notify the tenant of damages within 30 days before claiming, and the insurer may pursue the tenant only for amounts it actually paid within one year.