Texas Security Deposit Law: Limits, Deadlines, and Penalties
What Texas landlords can charge, when deposits must be returned, and what it costs to get it wrong. Last reviewed 2026-08-12.
How much can a landlord charge in Texas?
Texas law places no cap on residential security deposits. Landlords may charge any amount the market will bear, though one month's rent is typical. Since 2021, landlords may also offer an optional fee in lieu of a security deposit under Tex. Prop. Code § 92.111.
Texas sets no limit on pet deposits; landlords may charge refundable or clearly labeled nonrefundable pet fees, but deposits or fees may not be charged for assistance animals under fair housing law.
When must the deposit be returned?
The landlord must refund the deposit on or before the 30th day after the tenant surrenders the premises. The landlord is not obligated to refund the deposit or provide an itemized deduction list until the tenant gives a forwarding address in writing, but the tenant never forfeits the deposit by failing to provide one — the clock is simply paused.
If any portion is withheld, the landlord must give a written description and itemized list of all deductions. No itemization is required if the tenant owes rent when surrendering the premises and there is no controversy over the amount of rent owed.
What happens if a landlord misses the deadline?
A landlord who retains the deposit in bad faith owes the tenant $100 plus three times the portion wrongfully withheld plus reasonable attorney fees. Failing to return the deposit or provide itemization within 30 days creates a legal presumption of bad faith, and the landlord bears the burden of proving any retention was reasonable.
Interest and holding requirements
Texas does not require landlords to pay interest on security deposits. Any interest earned belongs to the landlord unless the lease says otherwise.
No statutory requirement. Texas does not require the deposit to be held in a separate, escrow, or interest-bearing account.
What Texas landlords get wrong
The 30-day presumption of bad faith is the trap that catches small Texas landlords: miss the deadline and the burden shifts to you to prove you acted reasonably, with $100 + treble damages on the line. Get the tenant's forwarding address in writing at move-out, and document unit condition with dated photos, since you must prove any retention was reasonable. A bad-faith failure to itemize also forfeits your right to withhold anything or sue the tenant for damages to the unit. Since September 2021 you may offer an optional monthly fee in lieu of a deposit, but you must also offer a traditional deposit option and cannot use the tenant's choice against their application.
The law itself
Frequently asked questions
How long does a landlord have to return a security deposit in Texas?
30 days after you surrender the premises. If you have not given your landlord a forwarding address in writing, the landlord's obligation to refund or itemize is paused until you do — but you never lose your right to the deposit. Once the 30 days pass without a refund or itemized statement, the law presumes the landlord acted in bad faith.
What can a landlord deduct from a security deposit in Texas?
Damages and charges the tenant is legally liable for under the lease or from breaching the lease — for example, unpaid rent, damage beyond normal wear and tear, or unpaid lease fees. Normal wear and tear can never be deducted. Every deduction must appear on a written itemized list unless the only issue is unpaid rent and there is no dispute over the amount.
What is the penalty if a Texas landlord wrongfully keeps a deposit?
A landlord who retains a deposit in bad faith owes $100 plus three times the amount wrongfully withheld plus the tenant's reasonable attorney fees. On a $1,500 deposit that could exceed $4,700. In any lawsuit, the landlord carries the burden of proving the retention was reasonable, and missing the 30-day deadline creates a presumption of bad faith.
Is there a limit on security deposits in Texas?
No. Texas has no statutory cap on residential security deposits, so a landlord can legally require one, two, or more months' rent. Market competition, not law, keeps amounts near one month's rent for most rentals. Landlords may alternatively offer an optional monthly fee in lieu of a deposit, but must still offer a traditional deposit choice.
Keep reading
- Texas late rent fee law
- Texas eviction process
- California security deposit law
- Florida security deposit law
- Georgia security deposit law
- New York security deposit law
- Ohio security deposit law
- Texas Tenant Landlord Laws: the full guide
- Late fees for rent: what you can legally charge
- Free prorated rent calculator
Deposit deadlines are easy to miss — until they cost you triple.
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Start Free TrialThis page is general information, not legal advice. Statutes change — verify against the official text linked above or consult a local attorney before acting.