Texas Security Deposit Rules: Property Code 92
Expert guide to security deposits in Texas, including the 30-day return timeline and mandatory itemization rules under Chapter 92.
Legal Disclaimer
This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
Legal Framework for Texas Security Deposits
In Texas, security deposits are governed by Chapter 92 of the Texas Property Code, with foundational legal authority tracing back to the Texas Constitution, effective since 1845. Texas is known for its "strict timeline" rules; failure to follow the 30-day return window can result in a landlord being found to have acted in "bad faith," leading to significant statutory penalties.
1. The 30-Day Return Rule (Sec. 92.103)
The landlord must refund the security deposit to the tenant on or before the 30th day after the date the tenant surrenders the premises.
- The Condition: This obligation only triggers if the tenant has provided a written forwarding address. However, the tenant’s failure to provide an address does not forfeit their right to the refund; it merely pauses the 30-day clock until the address is provided.
2. Mandatory Itemization of Deductions (Sec. 92.104)
Before returning the balance, the landlord may deduct for damages and charges for which the tenant is legally liable.
- The Rule: The landlord must provide a written description and itemized list of all deductions.
- The Exception: You do not need to provide an itemized list if:
- The tenant owes rent when they surrender the premises.
- There is no controversy regarding the amount of rent owed.
3. Normal Wear and Tear (Sec. 92.001)
Texas law explicitly prohibits deducting for "normal wear and tear." This is defined as deterioration that results from the intended use of a dwelling, including breakage or malfunction due to age or deteriorated condition.
- Example: Carpet cleaning for normal use cannot be deducted. However, cleaning deep stains or repairing holes in the wall is a valid deduction.
Mandatory Steps for Texas Landlords
Risk Mitigation: The "Bad Faith" Trap
Under Sec. 92.109, if a landlord retains a deposit in "bad faith," the tenant can sue for:
- Three times the portion of the deposit wrongfully withheld.
- An additional $100 statutory penalty.
- Reasonable attorney's fees and court costs. A landlord is presumed to have acted in bad faith if they fail to return the deposit or provide an itemization within the 30-day window.
How Landager Helps
Landager protects Texas landlords by automating the 30-day countdown the moment a "Lease Termination" event is logged. Our system generates a compliant Security Deposit Settlement Statement template, ensuring you itemize every deduction correctly and meet the strict Texas Property Code deadline. We also store your proof of mailing (or electronic delivery) to rebut any "bad faith" presumptions.
Back to Texas Overview.
Sources & Official References
Frequently Asked Questions
▶Is there a security deposit limit in Texas?
No. Texas does not impose a statutory limit on security deposit amounts — landlords can charge whatever the market allows, though most charge one to two months' rent. Deposits must be returned within 30 days of the tenant surrendering the premises, with an itemized statement of any deductions. Since September 2021, landlords may also offer a monthly fee alternative in lieu of a traditional deposit.
▶What are the Texas landlord-tenant laws every property owner should know?
Texas rental law is governed by Property Code Chapter 92 for residential and Chapter 93 for commercial properties. Texas is one of the most landlord-friendly states — there's no rent control, no statutory cap on security deposits, and a streamlined 3-day notice eviction process. However, landlords still face strict obligations around habitability, security devices, and tenant disclosures under the Property Code.
Read the complete guide▶What is the Texas eviction process and how long does it take?
Texas eviction begins with a written Notice to Vacate — the default period is 3 days, though the lease may specify a different timeframe. After the notice expires, landlords file a forcible detainer suit in Justice Court. Under SB 38 (effective January 2026), electronic notice delivery is now permitted if agreed upon in the lease, constables must attempt service within 5 business days, and tenants have a 21-day appeal limit. The full process typically takes 3-6 weeks.
Read the complete guide▶Does Texas have rent control or caps on rent increases?
No. Texas state law prohibits local governments from enacting rent control ordinances. Landlords can raise rent by any amount at the end of a lease term. During a fixed-term lease, rent cannot be increased unless the lease explicitly allows it. For month-to-month tenancies, 30 days' written notice is generally required before an increase takes effect.
Read the complete guide▶What is the grace period for late rent in Texas?
Texas mandates a 2-day grace period under Property Code §92.019 — landlords cannot charge late fees until rent has been unpaid for 2 full days after the due date. Late fees must be reasonable and stated in a written lease. For properties with 4 or fewer units, the cap is 12% of monthly rent; for larger properties, it's 10%. Late fees may include an initial charge plus a daily fee, but the total is treated as a single late fee.
Read the complete guide▶What disclosures must Texas landlords provide to tenants?
Texas landlords must disclose lead-based paint hazards (pre-1978 buildings), flood risk including 100-year floodplain status and whether the property has flooded in the past 5 years (since 2022), the identity and address of the landlord or agent, parking and towing policies for multi-unit complexes, tenant repair remedies in bold or underlined text, and early termination rights for family violence or military deployment.
Read the complete guide▶What are the Texas lease requirements for rental properties?
Texas recognizes both written and oral leases, though oral leases are only enforceable for terms of one year or less. Written leases must include late fee policies, tenant repair remedies (in bold or underlined text), security deposit terms, and landlord/agent contact information. Landlords must provide tenants with a signed copy within 3 business days of execution.
Read the complete guide▶What are Texas landlord maintenance obligations and habitability standards?
Under Property Code §92.052, Texas landlords must repair conditions that materially affect the physical health or safety of an ordinary tenant, including plumbing, electrical systems, heating and cooling, roof leaks, security devices (deadbolts, window latches), pest infestations, and mold. Tenants can use the 'repair and deduct' remedy after giving written notice and waiting 7 days, with deductions capped at one month's rent or $500, whichever is greater.
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