3 Things Texas Landlords Need To Know About Security Deposits

3 Things Texas Landlords Need To Know About Security Deposits

Texas landlords already know that "Texas cities are in great demand for renting." But unfortunately, while this might seem like a recession-proof investment, your tenants still have to pay. 

That's where security deposits enter this real estate deal. Texas landlords deserve a payment guarantee. So, take the initial investment in reading this article about the power of Texas security deposits. 

Texas landlords will become experts in the security deposit process at this guide's end. And thanks to recent Texas laws, Texas landlords have flexibility in using security deposits. With our expert Texas property management services, your security deposits become a guaranteed investment.  

What Are Security Deposits?

Texas security deposits, like regular security deposits, give Texas landlords money in advance. Before moving into an apartment or building, tenants pay the total monthly rental amount. This is a token of good faith that a tenant plans to move into the rental property.

Security deposits provide financial security for Texas landlords. Sometimes a tenant can't or won't pay rent, but a security deposit helps cover the loss. Security deposits also help cover damages to the rental property. 

Naturally, we can help Texas landlords screen suitable tenants. But before signing off on a tenant agreement, Texas landlords should consider these main points:

  1. Deposit deductions
  2. Illegally holding deposits
  3. Deposits for pets 

Recent Texas laws permit Texas landlords to receive a monthly fee with the rent instead of security deposits. However, Texas landlords using this option have to give their tenants written notice.This written notice should express these points:

  1. Agreeing to a monthly fee
  2. The tenant can opt-out
  3. The amount of the fee

Texas landlords must stipulate that amount in writing even if the tenant pays the security deposit. Also, the tenant can opt-out of the monthly fee.

Instead, they must pay a security deposit. Of course, our property managers in Texas can collect your rent and fees. 

1) Deposit Deductions

Texas law permits landlords to deduct fees and expenses from security deposits. Texas landlords can consider these conditions.

  1. Back rent
  2. Delinquent utility bills
  3. Physical changes to the property
  4. Property damages
  5. Cleaning fees

Also, tenants can't use the security deposit for last month's rental payment. Texas landlords can receive three times the last month's rental fee plus court fees.  

2) Illegally Holding Deposits

Texas landlords must return a tenant's security deposit if a tenant legally vacates the rental property. First, however, the former tenant must provide Texas landlords with a legal address. At that point, Texas landlords have 30 days to return the security deposit to the tenant. 

If landlords legally deduct fees from security deposits, they only have to return the final amount. Failure to return a security deposit can result in penalties for Texas landlords.  

Texas landlords must give their tenants a written list of security deposit deductions. Failure to do so might forfeit justified deductions from the security deposit. 

3) Deposits for Pets

Texas landlords have the legal right for their tenants to pay an extra deposit for their pets. However, service animals are usually exempt from security deposit fees. The tenant must compensate the landlord if a service animal damages the property. 

More on Security Deposits

We look forward to providing exemplary Texas property management for Texas landlords. Our expertise also extends to rental analysis. 

Texas landlords are welcome to search for rentals on the property search page. If you need help with leasing agreements, say no more. Our friendly and licensed realtor team stands ready to assist you. 

Of course, Texas landlords can contact us anytime about security deposits. Or you can view our blog for expert tips on property management in Texas.