Texas security deposit and move-in inspection rules

How much can the deposit be?

No state statute. Texas Property Code Chapter 92 sets no maximum amount for a residential security deposit.

Move-in inspection and photos

No state statute. Chapter 92 has no move-in inspection, inventory or condition-checklist requirement for security deposits.

Inspection before move-out

No state statute. Chapter 92 has no pre-move-out inspection requirement.

When the deposit must be returned

The landlord must refund the deposit, or send a written description and itemized list of deductions, within 30 days after the tenant surrenders the premises. The clock does not start until the tenant gives a written forwarding address (§ 92.107).

“Except as provided by Section 92.107, the landlord shall refund a security deposit to the tenant on or before the 30th day after the date the tenant surrenders the premises.”

What the itemized statement must include

If the landlord keeps any part of the deposit, it must send the balance with a written description and itemized list of all deductions. The statute does not specify the list's format beyond that. No list is needed if the tenant owes rent and the amount is not disputed (§ 92.104(c)(1)-(2)).

“If the landlord retains all or part of a security deposit under this section, the landlord shall give to the tenant the balance of the security deposit, if any, together with a written description and itemized list of all deductions.”

What can and cannot be deducted

The landlord may deduct damages and charges the tenant is legally liable for under the lease or for breaching it, but cannot deduct for normal wear and tear.

“Before returning a security deposit, the landlord may deduct from the deposit damages and charges for which the tenant is legally liable under the lease or as a result of breaching the lease. (b) The landlord may not retain any portion of a security deposit to cover normal wear and tear.”

How the deposit is returned

The landlord does not have to return the deposit until the tenant gives a written forwarding address, but the tenant does not lose the deposit by failing to give one (§ 92.107(b)). Mail postmarked by the deadline counts as on time (§ 92.1041). Since Sept. 1, 2025, notices may go by e-mail if the parties have already used e-mail (§ 92.113).

“The landlord is not obligated to return a tenant's security deposit or give the tenant a written description of damages and charges until the tenant gives the landlord a written statement of the tenant's forwarding address for the purpose of refunding the security deposit.”

Interest on the deposit

No state statute. Chapter 92 does not require landlords to pay interest on deposits or to hold them in a separate account. It only requires accurate records (§ 92.106).

Penalties for keeping a deposit wrongly

A landlord who keeps a deposit in bad faith owes $100, plus three times the amount wrongfully withheld, plus reasonable attorney's fees. Missing the 30-day deadline creates a presumption of bad faith (§ 92.109(d)). A landlord who in bad faith fails to give the itemized list loses the right to keep any of the deposit or to sue for damage (§ 92.109(b)). The landlord must prove any deduction was reasonable (§ 92.109(c)).

“A landlord who in bad faith retains a security deposit in violation of this subchapter is liable for an amount equal to the sum of $100, three times the portion of the deposit wrongfully withheld, and the tenant's reasonable attorney's fees in a suit to recover the deposit.”

Using the deposit as last month's rent

A tenant may not use the deposit as last month's rent. A tenant who does so in bad faith owes three times the rent withheld plus attorney's fees, and is presumed to have acted in bad faith (§ 92.108(b)).

“The tenant may not withhold payment of any portion of the last month's rent on grounds that the security deposit is security for unpaid rent.”

Move-out notice clauses in the lease

Extra topic. A lease can make the refund depend on the tenant giving advance notice of move-out, but only if that clause is underlined or in conspicuous bold print.

“A requirement that a tenant give advance notice of surrender as a condition for refunding the security deposit is effective only if the requirement is underlined or is printed in conspicuous bold print in the lease.”

If the property is sold

When the property is sold or otherwise changes owner, the new owner becomes liable for the deposit and must give the tenant a signed statement with the exact amount (§ 92.105(b)). This does not apply to a mortgage lender that takes title by foreclosure (§ 92.105(c)).

“If the owner's interest in the premises is terminated by sale, assignment, death, appointment of a receiver, bankruptcy, or otherwise, the new owner is liable for the return of security deposits according to this subchapter from the date title to the premises is acquired.”