MODERATE RISK

Texas

Security deposit laws

Texas security deposit laws are governed by Chapter 92 of the Texas Property Code. These laws provide clear guidelines on how landlords must handle security deposits, ensuring both landlords and tenants are aware of their rights and responsibilities under Texas law. Please note that rules and regulations may vary by municipality.

Collecting & Holding

Security Deposit Amount

In Texas, there is no statutory limit on the amount a landlord can require as a security deposit. It is typically based on the rental market and is often equivalent to one or two months' rent.

Options for Holding

Texas law does not require landlords to hold security deposits in a separate account or in a specific type of bank account.

Notification Requirements

Texas security deposit law does not require notification to tenants as to where their security deposit is held.

Payment of Interest Earned

In Texas, landlords are not obligated to pay interest on security deposits to tenants.

Returning

Timeline for Returning

Landlords must return the security deposit within 30 days after the tenant vacates the rental property and provides a forwarding address. If there are deductions, the landlord must also provide an itemized list of those deductions within the same 30-day period.

If the tenant does not provide a forwarding address, the landlord is not obligated to return the deposit until the address is provided.

Claims Process

If the landlord decides to withhold any portion of the security deposit, they are required to provide the tenant with an itemized list of deductions within 30 days. This list should detail the specific reasons for each deduction, such as costs for repairing damages or covering unpaid rent.

If a tenant believes their security deposit was wrongfully withheld, they can file a claim in small claims court. Tenants can seek the return of their deposit, plus any penalties and court costs.

Permissible Deductions

Landlords in Tennessee may use the security deposit for:

  • Unpaid Rent: Covering any rent that remains unpaid at the end of the lease term.
  • Repairing Damage: Repairing any damages to the property beyond normal wear and tear.
  • Cleaning Costs: Cleaning the unit if it is not returned in the same condition as when rented, excluding normal wear and tear.
  • Other Breaches of Lease: Addressing any other specific breaches of the lease agreement that result in financial loss to the landlord.

Penalties

If the landlord wrongfully withholds the deposit or fails to provide an itemized statement, the tenant may be entitled to recover three times the amount of the deposit plus court costs and attorney fees.

Special Circumstances

Military Service: Tenants who are members of the military and need to terminate their lease early due to deployment or relocation may be entitled to the return of their security deposit without penalty, provided they meet the requirements under the Servicemembers Civil Relief Act (SCRA).

DISCLAIMER: Security deposit laws may vary by county or municipality. The information provided by Build Whale, Inc. is for
general informational purposes only and should not be construed as legal advice. It is not a substitute for consultation with a
qualified attorney. While we strive to provide accurate and up-to-date information, Build Whale, Inc. makes no guarantees or
warranties regarding the accuracy, completeness, or reliability of the information presented.

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