Texas security deposit laws: What to know

What is a security deposit?

A residential security deposit is defined under Texas law as “any advance of money, other than a rental application deposit or an advance payment of rent, that is intended primarily to secure performance under a lease of a dwelling that has been entered into by a landlord and a tenant” (Tex. Prop. Code § 92.102).
 

Key laws in Texas

Important Texas security deposit laws include:

• Deposit limit: The Texas Property Code does not establish a general statewide maximum for residential security deposits. The amount is typically set by the lease, although other laws or housing program requirements may apply to a particular property (Tex. Prop. Code §§ 92.101–92.113).
   
• Return deadline: A landlord must generally refund the security deposit no later than the 30th day after the tenant surrenders the rental property, subject to the forwarding-address requirement (Tex. Prop. Code §§ 92.103, 92.107).
   
• Permitted deductions: Before returning the deposit, a landlord may deduct damages and charges for which the tenant is legally liable under the lease or because the tenant breached the lease (Tex. Prop. Code § 92.104(a)).
   
• Normal wear and tear: A landlord may not deduct from the security deposit for normal wear and tear. Texas law defines normal wear and tear as deterioration resulting from the intended use of a dwelling, but not deterioration resulting from negligence, carelessness, accident, or abuse by the tenant, a member of the tenant’s household, or a guest or invitee of the tenant (Tex. Prop. Code §§ 92.001(4), 92.104(b)).
   
• Itemized list: When deductions are made, the landlord must generally provide the tenant with a written description and itemized list of the deductions together with the remaining deposit. An itemized list may not be required if the tenant owes rent and there is no disagreement about the amount owed (Tex. Prop. Code § 92.104(c)).
   
• Forwarding address: A landlord is not required to return the deposit or provide the itemized deductions until the tenant supplies a written forwarding address. Failing to provide one does not cause the tenant to lose the right to the deposit or the itemized statement (Tex. Prop. Code § 92.107).
   
• Advance notice of move-out: A lease may require advance notice of surrender as a condition of receiving a security deposit refund, but that requirement must be underlined or printed in conspicuous bold type in the lease (Tex. Prop. Code § 92.103(b)).
   
• Bad-faith withholding: A landlord who retains a security deposit in bad faith may be liable for $100, three times the portion wrongfully withheld, and the tenant’s reasonable attorney’s fees. Bad faith may be presumed when the landlord fails to refund or account for the deposit within the statutory period (Tex. Prop. Code § 92.109).

Learn more in our guide to tenant rules and regulations in Texas.
 

What can a landlord deduct from a security deposit?

Texas security deposit laws permit deductions for amounts the tenant is legally responsible for under the lease. This may include things like unpaid rent, unpaid utilities owed to the landlord, missing property, or repairs for damage beyond normal wear and tear.

The amount deducted should be reasonable and tied to damages or charges for which the tenant is legally liable, rather than an unsupported automatic charge.
 

What counts as normal wear and tear?

Under Texas rental laws, normal wear and tear is the gradual decline that comes from ordinary use of a rental home. Examples may include minor carpet wear, lightly marked walls, faded paint, or aging fixtures. The property’s age, move-in condition, length of the tenancy, and supporting evidence can all matter.
 

Tips for owners

1. Complete move-in and move-out inspections

   A detailed condition record gives both parties a clearer starting point. Owners and tenants should document each room, note existing damage, and take dated photos or videos, even for short-term rentals.
   
   At move-out, compare the property with the original record rather than relying on memory. Inspection records can help distinguish new damage from normal wear and may reduce disagreements under Texas security deposit laws.
    

2. Keep clear records of every deduction

   Owners should retain invoices, receipts, photographs, inspection reports, estimates, rent ledgers, and correspondence supporting each deduction. A description such as “repairs” may not give the tenant enough information to understand the charge.
   
   A clear itemized statement should identify the condition, the work completed, and the amount withheld. Organized records also help if the deduction is later challenged.
    

3. Use a consistent move-out checklist

   A simple move-out checklist can help owners handle each tenancy the same way. Include the inspection date, key return, forwarding address, final rent balance, utility status, cleaning, and any visible damage. Using the same process each time can reduce missed steps and support a clearer security deposit accounting.
    

4. Work with a property manager

   A professional rental property manager in Texas can help owners organize inspections, track move-out dates, coordinate repairs, maintain records, and prepare deposit statements. They can also support consistent communication with tenants and follow an established process across multiple properties.
   
   Legal questions or disputed deductions should still be reviewed with qualified legal counsel.

About FirstService Residential

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Our Texas team offers tailored support that includes financial management, maintenance coordination, industry-leading technology, local expertise, and 24/7 customer care. We simplify property management so you can focus on what matters most.

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This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.