What You Need to Know About Security Deposits in Texas

Posted on November 27, 2025

Reading time: approximately 5 minutes

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As a landlord or tenant in Texas, understanding the rules and regulations around security deposits is crucial for a smooth rental experience. The security deposit is meant to protect both parties—landlords and tenants—against financial losses. While it serves as a safeguard for landlords in case tenants cause property damage, fail to pay rent, or violate lease terms, it also ensures tenants can leave the property without additional unexpected financial burdens. In this blog, we’ll break down everything you need to know about security deposits in Texas: from the amount you can charge to the deductions you can make, to the procedures for returning it.

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What Is a Security Deposit?

A security deposit is a sum of money paid by a tenant to a landlord before moving into a rental property. The deposit serves as a financial guarantee for landlords in case of unpaid rent, damage to the property, or cleaning costs after the tenant vacates. Typically, the security deposit is refundable—provided the tenant has fulfilled all lease obligations, including paying rent on time and maintaining the property in good condition.

Why Security Deposits Are Important:

• Protecting the Landlord: The deposit helps cover unpaid rent, damage beyond normal wear and tear, and necessary cleaning.
• Tenant Responsibility: It encourages tenants to maintain the property and adhere to lease terms, as they know they may lose part or all of their deposit if they don’t.

In Texas, security deposits are usually paid at the time the lease agreement is signed, before the tenant moves in. This ensures the landlord has some protection in case the tenant defaults on their lease obligations.

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How Much Can a Landlord Charge for a Security Deposit?

Texas law does not set a maximum limit on how much a landlord can charge for a security deposit. The amount charged is typically negotiated between the landlord and tenant and is usually based on the amount of rent the property commands. On average, landlords in Texas charge the equivalent of one month's rent for a security deposit.

Factors Affecting the Amount:

• Rent Amount: If the rental property commands a higher rent, the security deposit may be proportionally higher.
• Property Condition: A newer or more valuable property might come with a higher deposit to protect against potential damages.
• Tenant's Rental History: Tenants with no prior rental history or a poor credit record may be asked to pay a larger deposit as a safeguard.
• Negotiations: Some landlords may be open to negotiating the amount based on the tenant’s circumstances, including credit score, employment, and rental history.

While landlords are not restricted by law on the deposit amount, it is important to keep the charge reasonable. Overcharging tenants could lead to disputes or loss of potential renters.

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When Should the Security Deposit Be Collected?

The security deposit is generally due at the time the lease agreement is signed, prior to the tenant moving in. This payment should be made separate from the first month’s rent, ensuring clarity and transparency in the transaction.

Key Timing Considerations:

• Upfront Payment: Landlords should collect the deposit before the tenant moves into the rental property, ensuring that the landlord is financially protected before assuming any risk.
• Written Confirmation: Always provide a written receipt of the security deposit, specifying the amount, date, and any other relevant details. This helps avoid any confusion down the line regarding the deposit’s payment.

Clear communication about the timing and amount of the security deposit is crucial for both parties. A tenant should know exactly when and how much they are required to pay.

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Texas Law on Returning Security Deposits

Texas law requires landlords to return a tenant’s security deposit within 30 days of the tenant moving out, provided there are no deductions for damages or unpaid rent. If the landlord intends to make any deductions from the deposit, they must provide an itemized list of those deductions to the tenant.

Return of the Deposit:

• Full Return: If there are no issues with the property and no unpaid rent, the landlord must return the full deposit within 30 days.
• Deductions: If any portion of the deposit is withheld (for repairs, unpaid rent, etc.), the landlord must provide an itemized list of charges, detailing the repairs or expenses incurred.
• Tenant's Right to Dispute: If the tenant feels that the deductions are unfair or excessive, they have the right to dispute them through formal channels such as small claims court.

Failure to return the deposit within 30 days, or failure to provide a clear itemized list of deductions, could result in legal consequences, including the tenant being awarded damages in addition to the deposit.

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What Can Be Deducted From a Security Deposit?

While the security deposit is intended to be refundable, landlords may make legitimate deductions based on tenant behavior or property condition. However, Texas law stipulates that these deductions must be reasonable and justified.

Acceptable Deductions:

• Unpaid Rent: If the tenant leaves without paying rent, the landlord can deduct the outstanding rent balance from the deposit.
• Property Damage: Deductions can be made for damage beyond normal wear and tear, such as broken windows, holes in the walls, or stains on carpets.
• Cleaning Costs: If the tenant leaves the property in an unclean condition, the landlord can deduct the costs of cleaning.
• Other Costs: If the tenant leaves items behind that require removal, or if they have caused damage to appliances or fixtures, the cost of repairs or removal can be deducted.

What Cannot Be Deducted:

• Normal Wear and Tear: Minor scuffs on walls, faded carpet, or a small amount of dust are generally considered part of normal wear and tear and cannot be deducted.
• General Cleaning: Landlords cannot charge for basic cleaning that is part of regular upkeep.

It’s crucial for landlords to be transparent about these deductions and to provide a detailed and clear itemization to avoid disputes with the tenant.

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Security Deposit Disputes and How to Handle Them

Disputes over security deposits are not uncommon, especially when there is disagreement about damage costs or the condition of the property when the tenant moves out. It is important for both parties to know how to handle such disputes professionally and in line with the law.

Steps for Resolving Security Deposit Disputes:

• Review the Lease Agreement: Always refer to the lease agreement to clarify terms about property condition, damage responsibility, and maintenance obligations.
• Request an Itemized List: If you are a tenant disputing deductions, ask for a detailed breakdown of any charges made against your security deposit. As a landlord, ensure you provide this list within the 30-day period.
• Mediation: If a dispute cannot be resolved directly, both parties can turn to a third-party mediator to facilitate a resolution.
• Legal Action: In some cases, tenants may pursue legal action to recover a portion of the security deposit or damages in small claims court. Landlords should be prepared to prove the validity of any deductions to avoid penalties.

To avoid disputes, both parties should maintain open communication, document everything in writing, and follow legal procedures carefully.

Understanding the rules surrounding security deposits in Texas is essential for both landlords and tenants. By adhering to Texas law, both parties can avoid costly mistakes and ensure a smooth rental experience. Whether you are a first-time landlord or an experienced investor, being knowledgeable about the proper handling of security deposits can save you time, money, and potential legal trouble.

If you need expert help navigating security deposits, property management, or any other rental-related issue, Ally Realty & Management is here to support you. We offer professional property management services in Fort Worth and surrounding areas, ensuring your properties are well-managed and in full compliance with Texas laws.

Get in touch with us today to learn more or to get expert assistance. Contact us by phone at (817) 923-0433 or via email at [email protected]. We’re here to help make property management easier and more efficient for you.