Navigating Texas Property Code: Landlord Guide to Security Deposits

Welcome to TPS’s detailed guidance for Texas landlords on handling security deposits in accordance with the Texas Property Code.

This resource aims to clarify your duties and provide strategic advice to manage security deposits effectively, ensuring legal compliance and smooth tenant relations.

Key Aspects of Texas Security Deposit Law

Obligations After Tenancy Ends:

• 30-Day Refund Rule: Texas law requires landlords to return the security deposit or provide an itemized statement of deductions within 30 days of tenancy termination.
• Itemized Deductions: If there are charges against the deposit for repairs or unpaid fees, you must provide a detailed account of these deductions to the tenant.

Handling Missing Forwarding Addresses:

• Withholding Requirements: If the tenant fails to provide a forwarding address, your obligation to refund or itemize deductions is paused until an address is received.
• Proactive Measures: To safeguard against future disputes, send any refunds or notices to the tenant’s last known address (typically their rental property address). If the tenant has forwarded their mail, they will receive your correspondence.

Best Practices for Security Deposit Management

Documentation and Record Keeping:

• Maintain Records: Keep detailed records of all communications and transactions concerning the security deposit.
• Proof of Attempt: If you send the deposit refund or deductions notice to the last known address and it is returned, retain the returned mail as evidence to protect against claims of wrongful withholding.

Conclusion: Safeguarding Your Rights as a Landlord

Understanding and adhering to Texas’s security deposit laws not only protects you from potential legal issues but also promotes trust and professionalism in your landlord-tenant relationships. By following these guidelines, you can manage your properties more effectively and uphold the highest standards of rental practice.