How Security Deposits Work in Texas

This article walks through what Texas Property Code Chapter 92, Subchapter C actually says about security deposits — what your landlord can charge, what they can deduct, when they have to return what's left, and what to do if they don't. It's written for Texas tenants, but the principles apply to any rental in the state.

Quick disclaimer: this is a plain-English summary, not legal advice. If you're in an active dispute with several thousand dollars on the line, talk to a tenant-rights attorney or your local Lone Star Legal Aid office before you do anything binding.

What a Security Deposit Actually Is

A security deposit is money you pay to your landlord at move-in to cover the cost of fixing anything you damage, cleaning anything you leave dirty beyond reasonable use, or covering unpaid rent if you skip out. It is not a non-refundable fee. It is your money, held in trust, refundable when you move out — assuming you leave the place in reasonable shape and pay your final rent.

Texas law on security deposits is in Chapter 92, Subchapter C of the Texas Property Code. The whole subchapter is short — about 10 sections — and surprisingly readable. If you ever need to win an argument, knowing the section numbers helps.

How Much Can a Texas Landlord Charge?

Here's the surprising part: Texas law does not cap the amount of a security deposit. Unlike some states where deposits are capped at one or two months' rent by statute, Texas leaves the amount entirely up to the landlord and the lease.

In practice, most Texas residential landlords charge a deposit equal to one month's rent. Some charge less, some charge more for tenants with imperfect credit or rental history, and some offer the option of a "deposit alternative" (a small monthly fee instead of a lump-sum deposit). What matters is that the amount is in the lease and you agree to it before you sign.

One thing landlords cannot do: call it a "non-refundable security deposit." Under §92.102, any payment to a landlord that is held to cover damages or unpaid rent is a security deposit by definition — and security deposits are refundable by law. Some landlords charge separate non-refundable fees (like a pet fee or an admin fee) on top of the deposit. Those are legal as long as they're identified separately in the lease and not mislabeled.

The 30-Day Return Rule

This is the rule everyone should know. Under §92.103, after you move out, your landlord has 30 days to either:

• Return your full deposit, or
• Return any portion of the deposit not used, along with a written, itemized list of any deductions.

The 30-day clock starts when you surrender the unit — meaning you've moved out and either returned the keys or otherwise made it clear you're done with the property. It does not start when your lease officially ends if you stayed past the lease end, and it does not start when the landlord finishes inspecting or repairing.

There's one critical wrinkle: you have to give the landlord a forwarding address in writing (§92.107). If you don't, the landlord still has to keep the records, but they're not required to mail you the refund or the itemized list. So the very last thing you should do at move-out is give your landlord a written forwarding address — text, email, or paper letter — and keep proof you sent it.

What Landlords Can Deduct

Under §92.104, a landlord may deduct from your security deposit for damages and charges for which the tenant is legally liable under the lease or damages caused by negligence, carelessness, accident, or abuse. In plain language, that means:

• Unpaid rent. If you owe rent at move-out, the landlord can apply your deposit to it.
• Late fees and other charges in your lease. If your lease specifies a late fee or pet fee or NSF charge that you incurred and didn't pay, the deposit covers it.
• Damage beyond normal wear and tear. Holes in walls, broken appliances, stained carpet beyond what cleaning can fix, missing fixtures, etc.
• Cleaning costs if you left the unit in a condition significantly worse than at move-in.
• Cost of replacing items like missing keys, lost garage remotes, damaged blinds, etc.

What Landlords Cannot Deduct

Texas Property Code §92.104(b) is explicit: "The landlord may not retain any portion of a security deposit to cover normal wear and tear." That single sentence is the most contested issue in Texas security deposit disputes — because the line between "damage" and "normal wear and tear" is genuinely fuzzy, and landlords sometimes try to charge tenants for the latter.

Texas law defines normal wear and tear in §92.001 as "deterioration that results from the intended use of a dwelling, including breakage or malfunction due to age or deteriorated condition." The deterioration cannot result from negligence, carelessness, accident, or abuse. So:

• Faded paint? Wear and tear. Not deductible.
• Small nail holes from hanging pictures? Wear and tear in most cases.
• Big holes from unhung shelves or thrown objects? Damage. Deductible.
• Worn carpet in high-traffic areas after three years? Wear and tear.
• Pet stains, burns, or rips in the carpet? Damage.
• Slightly dirty appliances? Wear and tear if you used them normally.
• Grease-caked oven, mold in the fridge, sticky cabinets? Damage / cleaning.
• Loose or worn-out cabinet hinges after years of normal use? Wear and tear.
• A broken door frame because you kicked it? Damage.

The longer you lived in the unit, the more "wear and tear" the courts will accept. A tenant who lived somewhere five years is not responsible for paint that needs to be redone — that's the natural lifespan of paint. A tenant who lived somewhere six months and left scuffs everywhere is in a different position.

The Itemized List: Your Most Important Document

If your landlord deducts anything from your security deposit, they must provide a written, itemized list of all deductions along with whatever portion of the deposit they're returning (§92.104(c)). This isn't optional. It's not a courtesy. It's a legal requirement.

The itemized list should specify what the deduction was for and how much was deducted. A line that just says "$450 — cleaning and damages" is not a proper itemization. You should be able to read it and understand exactly what you're being charged for. If the landlord doesn't provide an itemized list, they forfeit their right to keep any of the deposit — and they may be liable for damages on top of that (more on that below).

One important nuance: under §92.104(d), if the only deduction is for unpaid rent and there is no controversy concerning the amount, the landlord doesn't have to provide an itemized list. But if there's any other deduction at all — even one — the itemized list is required.

What If the Landlord Acts in Bad Faith?

This is where Texas law has actual teeth. Under §92.109, if a landlord acts in bad faith — by failing to return the deposit, failing to provide an itemized list when required, or wrongfully withholding money — the tenant can sue and recover:

• $100 as a statutory penalty,
• Three times the portion of the deposit wrongfully withheld, and
• Reasonable attorney's fees in a lawsuit to recover the deposit.

"Bad faith" isn't the same as "made a mistake." A landlord who genuinely believed their deductions were legitimate but turned out to be wrong is not necessarily acting in bad faith. But §92.109(d) creates a presumption of bad faith if the landlord fails to return the deposit or provide the itemized list within 30 days. That's a meaningful legal advantage for the tenant.

What this looks like in practice: if your landlord keeps your $1,500 deposit, never sends an itemized list, and ignores your follow-ups, you can file in small claims (justice court) for up to $4,600 ($100 + $1,500 × 3) plus attorney's fees if you bring counsel. That's the kind of math that motivates landlords to do the right thing.

How to Dispute Deductions

If you receive an itemized list and disagree with one or more of the deductions, here's the playbook:

Step 1: Read the lease. Pull up the lease you signed and look for any clauses about move-out condition, cleaning standards, and what counts as a deductible expense. You may discover the landlord is correct under your specific lease terms — or you may discover they're charging for something the lease doesn't cover.

Step 2: Gather your evidence. The most powerful evidence in a security deposit dispute is photos and video. If you took a move-in walkthrough video showing the original condition of the unit (and you should have), pull it up. Compare it to the move-out condition. Take new photos of anything you can still access. Save any text messages or emails with the landlord about the unit's condition.

Step 3: Write a formal dispute letter. Mail or email a letter to the landlord that:

• References your lease and move-out date
• Lists each disputed deduction with the amount
• Explains why you believe it's not a valid deduction (wear and tear, pre-existing condition, etc.)
• Includes your evidence (photos, move-in walkthrough notes, etc.)
• Requests the disputed amount be returned within 14 days
• Notes your awareness of §92.109 remedies if the dispute isn't resolved

Send it certified mail with return receipt, or email with a read receipt. Keep a copy.

Step 4: If they don't respond or refuse, go to small claims court. Texas justice courts handle disputes up to $20,000, and you don't need a lawyer to file. Filing fees run $50–$100. You'll fill out a petition, pay the fee, and the court will set a hearing. Bring all your evidence — photos, lease, move-in walkthrough, dispute letter, certified mail receipt, the itemized list. Most security deposit cases that get filed are decided on the strength of documentation. If you have it, you usually win.

How to Protect Yourself Before You Move Out

The single best thing you can do to protect your deposit is something most renters never bother with: document the condition of the unit at both move-in and move-out. Specifically:

• At move-in: Walk through every room with your phone and take a slow video. Open closets, drawers, cabinets, and the oven. Pan over the carpet, the walls, the ceiling, the bathrooms, the appliances. Narrate any existing scratches, stains, or damage. Save the file with the date in the filename and email it to yourself so it's timestamped.
• Use the move-in inventory form your lease provides (if it provides one — most do). Fill it out completely. Note every existing scuff and stain, no matter how minor. Sign it, give a copy to the landlord, keep a copy for yourself.
• Communicate maintenance issues in writing during your tenancy through your tenant portal or by email. This creates a record that shows what was already broken or needed repair, separate from anything you caused.
• Clean thoroughly before you move out. Vacuum, mop, wipe down counters, clean the inside of the oven and fridge, take out the trash, return the unit looking the way you'd want to find it as a new tenant.
• Take a move-out walkthrough video the same way you did at move-in. Same rooms, same angles, same level of detail. This is your evidence if the landlord later claims damage you didn't cause.
• Provide a forwarding address in writing the day you turn in keys. Without it, you may forfeit your right to receive the refund and itemized list automatically.
• Keep the lease, the move-in form, your walkthrough videos, and any maintenance correspondence for at least four years after move-out. The Texas statute of limitations on these claims is generally four years, so you want everything available.

EWG Properties' Approach

At EWG, we follow Texas Property Code Chapter 92 as the floor, not the ceiling. That means itemized deductions for any charges, written documentation of move-in and move-out condition, transparent communication about anything we identify as damage versus wear and tear, and prompt return of any unused portion of the deposit within the 30-day window.

If you're an EWG tenant approaching move-out, our Move-Out Checklist walks you through everything that helps protect your deposit, and our property managers are happy to do a pre-move-out walkthrough so there are no surprises. Just ask.