Texas Security Deposit Returns and Deductions

Texas Security Deposit Returns and Deductions

Last Updated: December 16, 2024 by Roberto Valenzuela

Quick Facts Answer
Acceptable Deductions Unpaid rent

Costs of damage

Costs due to a breach of lease

Other charges listed in lease

Return Deadline 30 days
Itemized Deductions Required (with exceptions)
Penalty for Late Return 3x Amount due + $100 + Attorneys’ fees

For laws on security deposit collections and holdings in Texas, click here.

note

Some cities and counties may have regulations which are different from those presented here. Always check local laws.

Security Deposit Deductions in Texas

Texas allows these deductions from a security deposit:

  • Unpaid rent
  • Costs of damage excluding normal wear and tear
  • Costs incurred by the landlord as a result of a breach of the lease
  • Other charges as outlined in the lease

Most states, including Texas, do not have a legal limit on how much a landlord can charge for damages except that the charges must be reasonable and reflect actual landlord expenses.

If a tenant breaches the lease by ending the lease term early, and they find a replacement tenant satisfactory to the landlord, the landlord can only make the following deductions as a result of the change in tenant:

  • A cancellation fee as described in the lease agreement
  • Actual expenses incurred by the landlord in securing a new tenant

However, the replacement tenant must move in on or before the last day of the original lease. At the end of the tenancy, the landlord may make the standard deductions, such as damage and unpaid rent.

If the cost of damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant.

What is Considered Normal Wear and Tear in Texas?

Unlike many states, Texas has a formal definition for “normal wear and tear.” This is what the law provides:

“Normal wear and tear” means deterioration that results from the intended use of a dwelling, including… breakage or malfunction due to age or deteriorated condition.

Examples include:

  • Gently worn carpets
  • Lightly scratched glass
  • Faded paint and flooring
  • Lightly dirtied grout
  • Loose door handles
  • Stained bath fixtures

As defined by Texas state law, “damage” is:

Deterioration that results from negligence, carelessness, accident, or abuse of the premises, equipment, or chattels by the tenant, by a member of the tenant’s household, or by a guest or invitee of the tenant.

Examples include:

  • Heavily stained, burned, or torn carpets
  • Broken tiles or windows
  • Holes in the wall
  • Missing fixtures

Can the Landlord Charge for Replacing the Carpet in Texas?

Landlords can charge for replacing the carpet if it is damaged beyond normal wear and tear.

example

A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.

Can the Landlord Charge for Nail Holes in Texas?

Texas landlords can charge a tenant for nail holes if they damage the walls in a way that doesn’t demonstrate an ordinary and reasonable level of care.

Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.

However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage, and thus chargeable to the tenant.

Can the Landlord Charge a Cleaning Fee in Texas?

In Texas, landlords are allowed to charge a cleaning fee if mentioned in the lease or if the tenant causes damage that requires cleaning.

Can the Landlord Charge for Painting in Texas?

Landlords in Texas can charge for painting, if:

  • The tenant damages the paint in a direct way that doesn’t reflect normal wear and tear
  • The tenant repaints against the terms of the lease

Normal wear includes:

  • Minor scrapes from daily use
  • Fading due to sunlight
  • Minor cracks in the original paint

Landlords can charge for repainting if the damage is not the result of normal use. This includes stains, large or deep scratches, and water damage.

Security Deposit Returns in Texas

Landlords must return a security deposit by mail with a written notice to the tenant’s forwarding address no later than 30 days after the tenant vacates the rental unit.

However, the landlord is not obligated to return the security deposit until the tenant provides a forwarding address in writing.

How Long Do Landlords Have to Return Security Deposits in Texas?

Texas landlords have 30 days after the tenant vacates the rental unit to return any unused portion of the security deposit by mail, except the landlord is not obligated to return the security deposit until the tenant provides a forwarding address.

The tenant’s failure to provide a forwarding address does not mean that they forfeit their security deposit.

The security deposit is considered returned to the tenant on the day it is postmarked.

A landlord may require the tenant to provide advance notice to vacate the rental unit as a condition for returning the security deposit, but only if the condition is included in the lease agreement. The condition must be underlined or printed in conspicuous bold print on the lease.

Do Landlords Owe Interest on Security Deposits in Texas?

Landlords in Texas do not owe interest on security deposits, unlike in some states, such as New Jersey.

How Do Landlords Give Notice in Texas?

Written notice must be mailed to the tenant’s forwarding address and must include the amount of the security deposit due, if any, to the tenant, plus a written list of deductions. However, a written list of deductions is not required if the tenant owes rent and there is no controversy over the amount owed.

A template of a security deposit return letter is available to download on our website.

Can a Security Deposit Be Used for Last Month’s Rent in Texas?

A security deposit cannot be used for last month’s rent in Texas. A tenant who refuses to make the final rent payment and demands the use of the security deposit for rent may be held liable for three times the rent withheld plus reasonable attorney’s fees.

Security Deposit Disputes in Texas

If a tenant provides a forwarding address and the landlord does not return the security deposit within the 30-day period, the tenant can file a claim in court for up to three times the amount wrongfully withheld plus $100 and reasonable attorneys’ fees.

Tenants can also take legal action against a landlord for:

  • Failure to provide written notice when required to do so
  • Unreasonable deductions such as for normal wear and tear

How Can Tenants File a Dispute for a Security Deposit in Texas?

If a landlord fails to return the security deposit, the tenant can file a dispute in Small Claims Court, called Justice Court in Texas, if the amount of damages is less than $20,000. If the amount is greater, the tenant must file in the local County Court or District Court, depending on where the case is filed.

A small claims case for a residential lease agreement must be filed within 4 years and an attorney is not required but allowed. Cases are filed in the Justice Court where the defendant lives or the rental property is located. Filing fees are typically $54 but may vary depending on your local Justice Court.

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