General information, not legal advice. Landlord-tenant rules change, and cities and counties can add their own. Check the current statute and local ordinances, and talk to a licensed attorney before you act.
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The short version
- Texas does not cap the amount a landlord can collect as a security deposit.
- Landlords must refund the deposit and provide a written, itemized list of deductions within 30 days after the tenant surrenders the unit.
- Deductions for normal wear and tear are not allowed, and the tenant must provide a forwarding address to trigger the refund duty.
- A landlord who keeps a deposit in bad faith can owe a statutory penalty plus three times the amount wrongfully withheld and attorney fees.
Texas gives landlords freedom to set deposit amounts, but it is strict about how and when deposits come back. The rules are in Subchapter C of Texas Property Code chapter 92, and many of them cannot be waived in a lease. Missing the refund deadline or skipping the itemized list can turn a routine move-out into a costly dispute.
This guide covers deposit limits, deductions, deadlines and penalties for Texas residential rentals. It is general information, not legal advice. Confirm the details with the current statute and a Texas attorney before acting.
For a broader overview, see our security deposit guide and the definition of a security deposit.
Deposit limits and what counts
Texas does not set a maximum security deposit for residential rentals. Landlords commonly charge an amount tied to rent, credit results or the type of property, and many also collect a separate pet deposit.
Under the statute, a security deposit is any advance of money, other than an advance payment of rent, that secures performance of the lease. If you call a charge a fee rather than a deposit, the lease should say clearly whether it is refundable. Subsidized housing programs may limit deposits for participating units.
Allowed deductions
A landlord may deduct from the deposit for damages and charges for which the tenant is legally liable under the lease or because of a breach of the lease. Common examples include:
- Unpaid rent and lawful late fees
- Damage to the unit beyond normal wear and tear
- Unpaid utilities the tenant was responsible for under the lease
- Charges the lease specifies, such as for unreturned keys or removing abandoned property, where permitted
The landlord may not deduct for normal wear and tear, which the statute describes generally as deterioration from intended use, including breakage or malfunction due to age. Faded paint, minor scuffs and worn carpet from ordinary use are typical examples.
Refund deadline and itemization
The landlord must refund the deposit, minus lawful deductions, within 30 days after the tenant surrenders the premises. If any amount is withheld, the landlord must give the tenant a written description and itemized list of all deductions.
Key details:
- Forwarding address. The landlord is not obligated to send the refund or itemization until the tenant provides a written statement of a forwarding address.
- Narrow itemization exception. The statute excuses the itemized list only when the tenant owes rent at move-out and there is no dispute about the amount owed. Sending a list anyway is the safer practice.
- Advance notice of surrender. A lease can require the tenant to give advance notice of moving out as a condition of a refund only if the requirement is underlined or printed in conspicuous bold type.
Tip: Complete a written move-in condition report with dated photos, and repeat it at move-out. It makes deductions much easier to support.
A simple move-out workflow
A repeatable process keeps you inside the 30-day window:
- Confirm the surrender date and request a written forwarding address before the tenant leaves.
- Inspect the unit promptly, compare it with the move-in report and take dated photos.
- Get repair and cleaning estimates or invoices for each item you plan to deduct.
- Separate normal wear and tear from damage, and remove any charge you cannot support.
- Send the refund and itemized list by a trackable method, and save a copy in the tenant file.
Penalties for bad faith
Texas imposes significant penalties for withholding a deposit in bad faith. A landlord who acts in bad faith can be liable for a statutory amount of $100, three times the portion of the deposit wrongfully withheld and the tenant’s reasonable attorney fees.
A landlord who fails to return the deposit or provide the written description of deductions within 30 days is presumed to have acted in bad faith. A landlord who in bad faith fails to provide the itemized list can also forfeit the right to withhold any part of the deposit and may be liable for the tenant’s attorney fees.
The rules work in both directions. A tenant may not withhold the last month’s rent on the theory that the deposit covers it. A tenant who does so is presumed to have acted in bad faith and can be liable for three times the rent withheld plus the landlord’s attorney fees.
Records and property sales
Landlords must keep accurate records of all security deposits. When a property is sold, the new owner generally becomes liable for returning deposits from the date title transfers. The former owner can remain liable until the new owner gives tenants a signed statement acknowledging that the new owner has received and is responsible for the deposits. Address deposits in every purchase contract.
Texas does not require landlords to keep deposits in a separate account or pay interest. Many property managers still hold deposits in a dedicated trust account as a best practice, and TenantLoop accounting can track deposits by tenant, unit and owner.
Verify current law
Texas deposit rules are stable compared with some states, but the Legislature can amend chapter 92 in any session, and federal or program rules apply to subsidized housing. Before collecting or withholding a deposit, confirm the current statute text, review your lease and consult a Texas attorney.
Related reading: Texas landlord-tenant rights, California security deposit laws, Texas eviction process and our guide to bookkeeping for landlords.
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Where landlords trip up.
How much can a Texas landlord charge for a security deposit?
Texas has no statewide limit. The amount is set by the lease. Programs such as housing vouchers or other subsidies may have their own limits.
How long does a Texas landlord have to return a deposit?
Generally 30 days after the tenant surrenders the premises. The landlord is not required to send the refund or itemization until the tenant gives a written forwarding address.
Can a Texas tenant use the deposit as last month's rent?
No. Texas law prohibits a tenant from withholding the last month's rent on the grounds that the deposit covers it, and a tenant who does so in bad faith can owe the landlord a penalty.
What happens if a Texas landlord does not send an itemized list?
A landlord who fails to provide the refund or a written description of deductions within the deadline is presumed to have acted in bad faith, which can expose the landlord to penalties and loss of the right to withhold.