Understanding Texas Security Deposits

Answers to your most common (and some not so common) questions

Rents in Texas have been skyrocketing. According to a Harvard University report, more than half of the state’s 4.2 million renters spend at least 30 percent of their income on rent and utilities. 

To make matters worse, renters are almost always required to put down a security deposit, one which—rightly or wrongly—they might never see again. 

Navigating the ins and outs of security deposits can be confusing. This comprehensive guide will answer all of your questions, ensuring you know your rights as a tenant in the Lone Star State.

What is a security deposit?

A security deposit is a sum of money that a tenant pays to a landlord before moving into a rental unit.

The security deposit serves as financial protection for the landlord in the event that the tenant fails to fulfill their obligations under the rental agreement. These obligations may include paying rent, covering the costs of repairs for damages caused to the property, and cleaning the unit when moving out.

Is there a limit to the amount a landlord can charge as a security deposit in Texas?

In Texas, landlords can charge tenants any amount they want; there is no law establishing a maximum security deposit. Nevertheless, the security deposit is typically equivalent to one or two months' rent.

Most landlords charge a higher security deposit for pets.

Does my landlord have to return my security deposit?

The security deposit is meant to be used to fix “substantial damages” to the rental unit, except when the lease specifies additional fees.

The term “substantial damages” refers to damages arising from accidents, negligence, or intentional harm to the property, such as shattered windows, walls with holes, or large stains on the carpet. It’s important to keep in mind that you’re liable for these damages, even if they were caused by a visitor.

Landlords are NOT permitted to deduct amounts for normal wear and tear. Although “normal wear and tear” is not defined under the law, it includes things like faded carpets, chipped paint, and dust accumulation.

How long does my landlord have to return my security deposit in Texas?

Under Texas law, within 30 days from the date the tenant surrenders possession of the premises, the landlord must:

• Return the security deposit, and
• Provide a written description and an itemized list of damages and charges.

If a landlord fails to return a security deposit within 30 days, they may be liable for:

• Three times the amount of the security deposit wrongfully withheld plus $100, and 
• The tenant’s reasonable attorneys’ fees in a lawsuit to recover the deposit.

If a landlord fails to provide a written description and an itemized list of damage and charges, the landlord may:

• Forfeit the right to withhold any position of the security deposit, 
• Forfeit the right to file suit against the tenant for damage to the rental unit, and
• Be liable for the tenant’s reasonable attorneys’ fees in a lawsuit to recover the deposit.

What can I do to increase my chances of getting my security deposit returned?

To improve your chances of getting your security deposit back, take the following steps:

1. Conduct a thorough walk-through inspection of the rental unit with your landlord before you move in. Document the condition of the property with photographs, videos, and a written checklist signed by the landlord.
2. Keep the rental property clean and well-maintained. Notify your landlord immediately of any issues.
3. Clean the rental property thoroughly before moving out. This includes cleaning the floors, walls, carpets, windows, light fixtures, and appliances. If you can afford it, have a professional cleaning performed.
4. Take all personal belongings and trash with you when you move out. Don’t leave furniture in the unit or outside the unit, even if you think the next tenant could use the furniture. 
5. Request a move-out inspection with your landlord, during which you can both review the property’s condition together. Document the final condition with photographs, videos, and a written checklist signed by the landlord.
6. Provide your landlord with a written statement containing your forwarding address.

Can I apply my security deposit to my last month’s rent?

Under Texas law, tenants are prohibited from withholding payment of any portion of the last month’s rent on the grounds that the security deposit should be applied to the rent. 

If the tenant wrongfully withholds a rent payment on these grounds, the tenant:

• Is presumed to have acted in bad faith, and 
• Will be liable to the landlord for three times the rent wrongfully withheld plus the landlord’s attorney’s fees in a suit to recover the rent. 

What if my landlord doesn’t return my security deposit?

If your landlord fails to return your security deposit within 30 days, you have three primary options:

1. Contact your landlord: Landlords are human. It’s possible your landlord simply made a mistake and forgot to return your deposit, in which case a polite text, phone call, or letter may be all it takes to get your security deposit back.
2. Contact the State Bar of Texas: If you need low-cost legal assistance, contact the State Bar of Texas and ask about free or reduced-cost legal assistance. 
3. File a lawsuit in small claims court: When less than $20,000 is involved, a tenant can sue a landlord in the Justice of the Peace Court in the precinct where the rental property is located. These suits are relatively inexpensive to file, informal, and typically don’t involve attorneys.

Have more questions about landlord-tenant laws in Texas? These resources may help: