Landlord law
Texas security deposit return rules
Security deposit disputes are among the most common claims Texas landlords face, and the statute is written so that a landlord who misses the deadline starts at a disadvantage. The rules are in Subchapter C of Chapter 92 of the Texas Property Code. This guide explains the 30-day deadline, what can and cannot be deducted, and how the penalties work.
Not legal advice. This summarizes the residential deposit rules as they read on the review date below. Commercial leases follow a different subchapter. For a disputed deposit, talk to a Texas attorney.
The rules at a glance
| Rule | What it says | Property Code |
|---|---|---|
| Refund deadline | Refund the deposit on or before the 30th day after the tenant surrenders the premises | §92.103 |
| Itemized deductions | If you keep any part, give the balance and a written description and itemized list of all deductions | §92.104 |
| Wear and tear | No deduction for normal wear and tear | §92.104 |
| Forwarding address | No duty to refund or itemize until the tenant gives a written forwarding address; the tenant does not forfeit the deposit by not giving one | §92.107 |
| Mailing | A refund or accounting postmarked on or before the deadline is presumed on time | §92.1041 |
| Advance notice clause | A lease requirement to give notice before moving out, as a condition of the refund, works only if it is underlined or in conspicuous bold print | §92.103 |
| Last month's rent | The tenant may not withhold the last month's rent on the grounds that the deposit covers it | §92.108 |
| Sale of the property | The new owner becomes liable for deposits from the date title is acquired and must give tenants a signed statement of the amount | §92.105 |
Step by step when a tenant moves out
- Confirm the surrender date. The 30-day clock runs from the date the tenant surrenders the premises. Note how and when keys came back.
- Get the forwarding address in writing. Your move-out form or lease can ask for it. Until you have it, the duty to refund or itemize doesn't arise, but the tenant keeps the right to the deposit.
- Inspect and document. Walk the unit with the move-in condition report. Take dated photos and video of every room, including appliances and flooring.
- Separate damage from wear and tear. Only damage and charges the tenant is legally liable for under the lease can be deducted.
- Price the deductions. Use invoices, contractor quotes or a written price list you gave the tenant at move-in. Round numbers with no support are hard to defend.
- Send the refund and the itemized list together, on or before day 30, by a method you can prove. First-class mail postmarked by the deadline is presumed timely.
- Keep the file. Lease, condition reports, photos, invoices, the forwarding address and proof of mailing.
Wear and tear or damage?
The Code defines normal wear and tear as deterioration from the intended use of the dwelling, and excludes deterioration caused by negligence, carelessness, accident or abuse. Common examples:
| Usually wear and tear | Usually deductible damage |
|---|---|
| Faded paint, small nail holes, light scuffs | Large holes, unapproved paint colors, crayon or marker on walls |
| Carpet worn in walkways after years of use | Pet stains, burns, tears |
| Loose door handles, worn grout | Broken doors, cracked tiles, missing blinds |
| Minor sun damage to blinds | Trash left behind, unpaid rent or utilities, lost keys |
Age matters. A carpet near the end of its useful life has little remaining value, and charging a tenant the full cost of new carpet invites a dispute.
The penalties
Section 92.109 sets the consequences:
- Bad-faith retention: $100, plus three times the portion wrongfully withheld, plus the tenant's reasonable attorney's fees.
- Bad-faith failure to itemize: the landlord forfeits the right to keep any part of the deposit, or to sue the tenant for damage to the premises, and owes the tenant's reasonable attorney's fees.
- Presumption: a landlord who neither refunds nor itemizes by day 30 is presumed to have acted in bad faith.
- Burden of proof: in a tenant's suit, the landlord must prove the retention was reasonable.
The statute also works the other way. A tenant who withholds the last month's rent against the deposit is presumed to act in bad faith and can owe three times the rent withheld plus attorney's fees (§92.108).
Related rules worth knowing
- No deposit, but damage. If the lease required no deposit, the landlord must notify the tenant in writing of a claim for damages before reporting it to a credit bureau or debt collector, if the tenant gave a forwarding address (§92.110).
- Fee in lieu of a deposit. A landlord may offer a recurring fee instead of a deposit, but must also offer the deposit option and give written disclosures (§92.111).
- Tenant never moves in. If a satisfactory replacement tenant takes the unit by the start date, the landlord generally may not keep the deposit, subject to a lease cancellation fee or actual re-leasing costs (§92.1031).
- Buying a rental with tenants. Ask the seller for the deposit ledger and have the deposits credited to you at closing. After the sale, you are responsible for them.
Good habits
- Use a written lease that states the deposit amount, move-out procedure and any advance notice requirement in bold or underlined text.
- Complete a signed move-in condition report with photos.
- Calendar day 30 from surrender as soon as the tenant leaves.
- Keep deposits in the property's own account, especially if the property is held in an entity. See LLCs for rental property.
Common questions
How long does a Texas landlord have to return a security deposit?
On or before the 30th day after the tenant surrenders the premises (§92.103), once the tenant has given a written forwarding address (§92.107).
Does Texas cap how much deposit a landlord can charge?
The Property Code does not set a general maximum for residential deposits. Federal, local or program rules may apply to some housing, such as subsidized units.
Does a landlord have to pay interest on the deposit?
Subchapter C does not require it. A lease or program rule could.
Can I keep the deposit for unpaid rent?
Yes, if the tenant owes it under the lease. You don't need to itemize if the tenant owes rent on surrender and there is no dispute about the amount (§92.104), but itemizing anyway is the safer practice.
Related guides
- Texas landlord-tenant law basics — repairs, late fees, notices.
- The Texas eviction process and timeline
- HOA rules for landlords
Read the statute itself at Texas Property Code, Chapter 92.
Last reviewed 2026-09-17