As a landlord renting out a property in Texas, understanding the security deposit laws is critical to your success. It’s important to familiarize yourself with things like how much you can charge, how you must store it, when to return it, and in what situations you can withhold part or all of it, among other things.
We’ll walk landlords through all the important basics they need to know regarding a tenant’s security deposit in Texas.
Why Landlords Collect Security Deposits
Landlords collect a tenant’s security deposit to cushion themselves against certain potential financial damages that may arise during a tenancy. Examples of possible scenarios include the following:
- The tenant moving out without clearing their utility bills. Most utilities are usually in the tenant’s name. If they move out without paying them, you can withhold part or all of their deposit.
- The tenant leaving the property in a state of uncleanliness. Landlords usually require tenants to leave their premises in the move-in state, less normal wear and tear. If a tenant doesn’t, a landlord could make appropriate deductions from their deposit.
- The tenant breaching the lease agreement by not paying rent. Should a tenant do this, you’d be entitled to part or all of their deposit.
- The tenant abandoning their premises before the end of their lease term. The tenant will be required to pay rent for the entire duration of the tenancy. If a tenant moves out mid-term and fails to honor their rent obligations, you may be able to withhold their deposit.
- The tenant causing damage exceeding normal wear and tear.
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