Texas Security Deposit Rules 2026: Limits, Deadlines & Deductions

TL;DR: Texas law (Property Code Chapter 92) sets no maximum on how much you can charge for a security deposit, but you have 30 days after the tenant moves out and gives a forwarding address to either return the deposit or send an itemized list of deductions. Withhold money in bad faith and a tenant can recover $100, three times the wrongfully withheld amount, and attorney's fees.

_Last reviewed: August 2026 · 7 min read_

You collected a deposit, the tenant moved out, and now you're staring at scuffed baseboards wondering how much you can legally keep. Texas doesn't cap the deposit amount the way some states do, but the return deadline and paperwork rules are strict, and getting them wrong is expensive.

Okoniq Property Hub logs deposit amounts, move-out dates, and itemized deductions in one place so you're never guessing when the 30-day clock started.

How much can a Texas landlord charge for a security deposit?

There's no state-imposed maximum. Texas Property Code Chapter 92 leaves the deposit amount entirely up to the lease agreement between landlord and tenant. Most owner-operators in Texas charge one month's rent, though it's common to ask for one and a half or two months on units above $2,000 a month or for tenants with thinner credit files.

Whatever number you settle on, spell it out clearly in the lease. This is one of the details worth locking down alongside the other terms covered in 7 lease clauses every independent landlord should understand, since a vague deposit clause is one of the easier things for a tenant's attorney to challenge later.

How many days do you have to return a security deposit in Texas?

You have 30 days from the date the tenant moves out and provides a forwarding address in writing. If the tenant never gives you a forwarding address, the clock technically doesn't start, but courts have found landlords still need to make a reasonable effort to deliver the refund or itemized list to a known address.

Within that 30-day window you must either send the full deposit back or, if you're keeping any portion of it, send a written itemized list of the specific damages and charges. Texas Property Code Section 92.104 requires this itemization "in reasonable detail" — a one-line note that says "damages: $400" won't hold up if challenged. Keep dated photos and receipts to back up every line.

What can you legally deduct from a Texas security deposit?

You can deduct for damage beyond normal wear and tear, unpaid rent, and unpaid utility bills the tenant was responsible for under the lease. You cannot deduct for ordinary aging of carpet, faded paint, or minor nail holes — Texas courts treat those as normal wear and tear, not tenant damage.

The line between "damage" and "wear and tear" is where most disputes happen. A carpet stained by a spilled drink is damage; a carpet worn thin after five years of foot traffic is not. If a repair falls into a gray area, it helps to document the property condition at move-in and compare it against the emergency vs non-emergency repairs framework to decide whether the issue was tenant-caused or just age.

| Deductible | Not Deductible | |---|---| | Broken window from tenant negligence | Faded paint from sunlight over years | | Pet urine stains in carpet padding | Small nail holes from picture frames | | Unpaid last month's rent | Worn carpet from normal foot traffic | | Unpaid water bill owed under lease | Minor scuffs on walls |

What happens if a landlord violates Texas security deposit law?

You can be held liable for bad faith retention, which under Section 92.109 means owing the tenant $100, three times the amount wrongfully withheld, and the tenant's reasonable attorney's fees. Bad faith isn't automatic just because a deduction gets disputed — the tenant has to show you acted in bad faith, meaning you kept money without any real basis or ignored the itemization requirement entirely.

Missing the 30-day deadline without sending any itemized list is treated as a strong sign of bad faith in Texas courts, even if your deductions were otherwise justified. That's the costly mistake: not the amount you deducted, but the paperwork you skipped. If a deposit dispute escalates into a broader tenant conflict, it's worth reviewing how to write an eviction notice so you're not compounding one procedural error with another.

Do you need to pay interest on a Texas security deposit?

No. Texas is one of the states that does not require landlords to pay interest on security deposits, regardless of how long the tenant lived there or how the deposit was held. Some states like Illinois and Pennsylvania do require interest after a certain holding period, so if you own property across state lines, don't assume Texas rules travel with you. For the states that do require it, see do you owe interest on a tenant's security deposit for a state-by-state breakdown.

Texas also doesn't require you to hold the deposit in a separate escrow account, unlike some jurisdictions. You can commingle it with operating funds, though many owner-operators keep it separate anyway just to avoid confusion when it's time to reconcile at move-out. Tracking that balance inside property management software built for independent landlords removes the guesswork of remembering which portion of your bank balance is actually the tenant's money.

FAQ

Can a landlord require a separate pet deposit in Texas?

Yes. Texas allows a separate, non-refundable pet fee or an additional refundable pet deposit on top of the standard security deposit, as long as it's disclosed in the lease.

Is a move-out walkthrough inspection required in Texas?

No, Texas law doesn't require a formal walkthrough, but it's strongly recommended. A joint inspection with photos and a signed checklist is your best evidence if a deduction gets disputed later.

Can a tenant use the security deposit as last month's rent in Texas?

Only if the lease explicitly allows it. Without that clause, a tenant who stops paying the final month's rent and assumes the deposit covers it is still in breach of the lease.

What if the tenant never gives a forwarding address?

You're not required to track them down, but keep proof you attempted delivery to the last known address. Courts generally protect landlords who made a good-faith effort even when the tenant disappears.

Can I charge a non-refundable deposit in Texas?

Texas law treats most deposits labeled "non-refundable" the same as regular deposits for legal purposes, meaning the itemization and refund rules still apply unless the fee is clearly structured as a separate, disclosed service fee, like a pet fee or application fee.

This is educational information, not legal advice. Consult a Texas landlord-tenant attorney or review Texas Property Code Chapter 92 directly before withholding any portion of a security deposit.