Texas is a state on the rise, with a growing population and strong job prospects. If you’re investing in rental property in Texas, you should know the state’s rental rules. Note that this guide is no substitute for legal advice. If you want to learn more about Texas rental laws, explore the helpful links below or speak to a legal expert.
A guide to Texas rental laws and regulations
- Leases, rent, and fees
- Security deposits
- Notices and entry
- Utilities
- Pet laws
- Eviction
- Texas business licenses
- Disclosures
- Court info
- Resources
- FAQs
Leases, rent, and fees in Texas
Landlords in Texas must draw up rental agreements for all leases of 12 months or more. However, a rental agreement is also helpful for shorter leases. A rental agreement lets all parties know where they stand if disputes occur. You should give your renters a copy of their rental agreement three days after finalizing it.
Late fees
There is no legal requirement for late rental fees in Texas. However, you can charge renters who don’t pay their rent on time late fees as long as you note it in your rental agreement. According to §92.109 of the Texas Property Code, this fee should be a “reasonable estimate of uncertain damages to the landlord that is incapable of precise calculation and result from late payment of rent.” It should also reflect your damages.
A one-day grace period applies across the state. However, you can note a longer grace period in the rental agreement.
Adjusting rent
You cannot raise the rent within the lease period. You can increase rent for renters on month-to-month leases and renters without written rental agreements. However, these people must receive notice of the rent increase. You must give renters on month-to-month leases 30 days’ notice. Renters without a written rental agreement get a Texas rent increase notice equal to their rent interval period. For example, renters paying rent weekly get a week’s notice.
Repair fees
You are responsible for making repairs on your rental properties. However, renters do have the right to make repairs themselves if you can’t complete them in a reasonable amount of time. They can deduct their expenses from their next rent, so long as they don’t cost more than a month’s rent or $500. Your renters must also give notice before attempting any property repairs or withholding your rent.
Additional fees
As there is no statute governing it, you can also charge returned check fees of your choice if your renters’ checks bounce. Include details of these fees in your rental agreement. Many landlords charge their renters a fee that covers what their bank charges them.
Security deposits and deposit management in Texas
Security deposits are not a legal requirement in Texas. However, Subchapter C of the Texas Property Code details the rules surrounding security deposits in the state. Most Texas landlords collect a security deposit equivalent to one month’s rent. There is no minimum or maximum amount for a security deposit, though. Whatever amount you decide, give your renters a receipt noting their payment for their records.
Under §92.104 of the Texas Property Code, you can use security deposits to offset unpaid rent or property damage. You should expect normal wear and tear, and you can’t use the security deposit for these repairs.
Returning security deposits
According to §92.103 of the Texas Property Code, unless you use the security deposit for approved purposes, you must return the total amount within 30 days of a renter leaving your property. The postmark of any mailed checks should prove postage within the 30-day deadline.
If allowed in the lease agreement, renters can expedite the return of their security deposit with a Notice of Surrender.
Renters should supply their new addresses to minimize delays in receiving their security deposits back. If your renter provides their new address after the standard 30-day period, you should simply return the security deposit as soon as you practically can.
Holding security deposits
There is no legal requirement for landlords to keep their renters’ security deposits in separate bank accounts. Most landlords in Texas deposit the amount into their bank accounts.
Interest regulations
Any interest the security deposit incurs belongs to you, not your renter.
Retaining part of the deposit
If you do not return a renter’s full security deposit, you must send your renter written confirmation of repair costs and unpaid rent deducted. The renters must receive this list within 30 days of moving out.
A renter can sue you for withholding some or all of their security deposit without cause. They can also seek damages if you do not provide the itemized deductions list. If their case is successful, your renter could receive three times their deposit amount in damages.
Notices of entry regulations
You can only enter your rental property if you have a good reason for doing so. Performing repairs or maintenance tasks, leaving notices, responding to renter requests or neighbor complaints, and showing the property to potential new renters or buyers are all valid reasons for entry.
You must provide written notice of entry before entering your rental properties. The state does not provide a set notice period. Technically, you can hand your renters notice of entry, then enter straight away. However, most landlords in Texas provide at least 24 hours’ notice as a courtesy.
You don’t need any notice of entry when responding to emergencies. Emergencies involve matters where people or property are under threat. You won’t need proof of an emergency unless your renter believes you’re entering the property unlawfully.
Texas utility laws
It’s up to you whether you’ll pay for your renters’ utilities or not. Landlords in Texas either pay for water, electricity, or gas or make some or all of these utilities their renters’ responsibility.
You can interrupt a renter’s electricity supply if you’re paying for the service, but they aren’t paying rent. However, you must give notice before stopping the power supply. You also can’t interrupt the electricity during extreme weather or when your renters are ill.
Texas pet laws
There are no Texas rental laws regarding pets and rental properties, so you can decide whether to rent to pet owners or not. You can also determine what size and types of pets are permissible in your rental properties.
There is no statute concerning pet surcharges, so you are free to charge renters with pets an additional fee. Pet owners may incur a single pet deposit, ongoing pet rent, or both. These extra charges can offset the risk of pets putting extra wear and tear on your properties.
Service animals are usually permitted on rental properties under Texas Law and the Americans with Disabilities Act. People with disabilities should file a “no pets” waiver request before renting a property that doesn’t usually allow pets. You can only refuse the request if the service animal would cause you financial or administrative problems.
Eviction laws in Texas
Under §24.005 of the Texas Property Code, you can evict non-paying renters by giving them a three-day notice. In other words, a non-paying renter has three days after receiving an eviction notice to vacate the property or pay their rent.
There is no statute for evicting a renter who violates a lease. This means you can give these evicted renters fewer than three days to vacate the property.
You can terminate a lease agreement for any reason. You might do this if you want to sell the property or your renters often make late payments. Renters who’ve had their leases terminated get more time to vacate the property than evicted renters.
You must provide at least one month’s notice before terminating a lease. According to §91.001 of the Texas Property Code, this guideline stands for yearly and month-to-month leases. However, renters with month-to-month leases can make a different arrangement with you by mutual agreement. There is no statute determining when renters must move out after lease termination.
Texas business licenses
The state of Texas does not require landlords to hold a license. However, some local jurisdictions may insist landlords in their area get licensed.
You can apply for a rental license through your township’s website. After receiving an application, a township representative will schedule a property inspection. If your property meets the township’s codes, you’ll receive your rental license. Most rental licenses are valid for a year before they need renewing.
Required disclosures
Texas has several required disclosures a landlord must provide to renters.
Contact information
You should disclose your full name and address on the lease or another document. If a third party handles maintenance for you, list their contact details as well.
Repairs and maintenance
Renters have the option to make repairs if the landlord doesn’t make repairs that could impact the renter’s health or safety. In this circumstance, renters can make their repairs and deduct their expenses from the rent or terminate the lease. The lease should ideally explain the processes for both these options.
Domestic violence
A new lease agreement must also state tenants can break the lease early to escape domestic violence, sexual abuse, or sexual assault. If you want proof, you should note this condition in the lease agreement.
Lead paint
Under federal law, renters must know if they’re renting a home built before 1978 with lead paint. Texas landlord-tenant law requires landlords with properties with lead paint to give renters an EPA-approved information pamphlet and completed disclosure form.
If you’re paying for your renters’ water, gas, or electricity, disclose this arrangement in the lease. This makes the arrangement clear if the utility company withdraws supply for unpaid bills.
Parking and towing
Before your renters sign the rental agreement, you should also disclose any towing or parking rules for multi-unit dwellings. Underline, capitalize, or bold the relevant clauses for emphasis. Ask your renter for their signature to show they understand the rules.
Texas court information
Renters can take legal action against a landlord for wrongful eviction or lease termination in small claims court. They can also launch legal proceedings if they can’t use the property or services associated with it. They may also seek legal help if they face a rental increase because they’ve exercised their legal rights. All these circumstances constitute unlawful retaliation.
Renters can seek damages for unlawful retaliation, including the value of one month’s rent plus $500, attorney fees, and court costs. If renters need to relocate, they may also receive moving costs. Note that the small claims court only awards damages less than $10,000. Landlords must prove their actions were not retaliatory to avoid penalties.
You can take legal action in small claims court against any renters who don’t pay their rent or cause damage their security deposit can’t cover. If successful, you could receive a payout of up to $10,000.
Additional resources for Texas landlords
The following links provide additional helpful resources for landlords in Texas.
- U.S. Department of Housing and Urban Development
- Texas Tenant Advisor
- Texas Tenants Union
- Texas Attorney General Renter’s Rights
- Texas State Law Library Landlord/Tenant Law Guide
- Texas Courts Online
- Texas Real Estate Commission
- Texas Association of REALTORS
- Houston Apartment Association
- San Antonio Apartment Association
You should perform extensive research before you rent properties in Texas. Review this handy guide and take a look at your local jurisdiction’s rental laws to make sure you and your renters are protected.
FAQs about rental laws in Texas
Do landlords have to draw up a written lease in Texas?
Yes, for all rental agreements of 12 months or more.
Can landlords charge late fees in Texas?
Yes. There’s no legal requirement, so landlords can charge late fees if they are addressed in the written rental agreement.
Is a security deposit required in Texas?
No. A security deposit is not legally required in Texas. However, landlords can collect a security deposit equal to one month’s rent.
Can a landlord enter your rental unit without notice in Texas?
No. A landlord must provide written notice. Although there isn’t a set time for the notice, most landlords provide a minimum of 24 hours.
Does Texas have pet laws for renters?
No. Allowing pets and any fees or policies regarding pets is up to the landlord.
When you want to streamline property rentals, Zumper can help. Learn how you can publish property listings, screen potential renters, create leases and collect payments with Zumper.
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