Texas Landlord Tenant Issues


I. Liabitility of Landlord.

  1. Landlord Liability to Tenant for keeping Security Deposit

a. Texas Property Code § 92.103 requires a landlord to refund a security deposit to a tenant by the 30th day after tenant surrenders the premises.

b. A landlord who keeps a security deposit in bad faith in violation of subchapter C (chp. 92, subchapter C governs security deposits) is liable to the tenant for $100, three times (that’s correct, 3x) the potion of the deposit wrongfully withheld, and the tenant’s reasonable attorney’s fees in a suit to recover the deposit. TEX. PROP. CODE ANN. § 92.109(a).

c. A landlord who in bad faith does not provide a written description and itemized list of damages and charges in violation of chapter 92, subchapter C has the       following consequences:

i. The landlord may forfeit the right to withhold any portion of the security deposit or to bring suit against the tenant for damages to the premises; and

ii. Is liable for the tenant’s reasonable attorney’s fees in a suit to recover the deposit.

  • 1. A landlord keeping a portion of deposit when tenants performed all conditions of lease, met all requirements for refund of deposit, and made effort to clean, repair, and restore property to same or better condition was bad faith. See Schneider v. Whatley, 535 S.W.3d 236, 241-42 (Tex. App. – El Paso 2017, no pet.).
  • 2. A landlord not providing sufficient evidence of damages to premises as basis for withholding deposit is bad faith. See Miro v. Garner, 52 S.W.3d 407, 411 (Tex. App. – Corpus Christi 2001, pet. denied).
  • 3. There are also cases not finding bad faith like when a landlord provided written description and offering photographs as proof of what needed to be repaired. See Pulley v. Milberger, 198 S.W.3d 418, 430-31 (Tex. App. – Dallas 2006, pet. denied).

d. In a lawsuit brought by a tenant under chapter 92, subchapter C, the landlord has the burden of proving that the retention of any portion of the security deposit was reasonable. TEX. PROP. CODE ANN. § 92.109(c).

e. A landlord who fails either to return a security deposit or to provide a written description and itemization of deductions on or before the 30th day after the day the tenant moves out (surrenders possession) is presumed to have acted in bad faith.

i. Move Out Tip - make sure to always communicate with landlords in writing so that there is not any confusion. This helps good landlords and good tenants stay out of court. Written communication is often easiest with email because you, the tenant, will always be able to keep a copy of that writing without any special effort.


II. Liabitility of Landlord.

  1. Demand Letter

a. Generally – A demand letter is not necessarily required to go to the landlord, but it is helpful in preventing an unnecessary lawsuit. The Crawshaw Law Firm has sent demand letters only to receive responses indicating the landlord had done everything necessary to provide an accounting and comply with the Texas Property Code by returning the security deposit. A landlord response like most often results in the situation being resolved with no lawsuits being filed.

b. Who sends a demand letter – In the past the Crawshaw Law Firm has sent demand letters for security deposit returns. However, more recently, and to better effect, clients have sent their own simple demand letters for the security deposit to be returned. This helps streamline the process because if the potential client does not receive a response from the landlord then the Crawshaw Law Firm can readily open a file and proceed with litigation if it is appropriate.

  2. In What Court is a Security Deposit Lawsuit Filed?

a. Many times security deposit lawsuits may be filed in Justice of the Peace courts. Depending on the nature of the case and the facts surrounding a tenant’s move out, a lawsuit may be filed in a County Court at Law.

i. County Courts at Law – County Courts at Law are sometimes, not always, better venues because formal discovery may be conducted without court permission (like in Justice of the Peace courts).

ii. If a landlord charges a tenant with cost of repair or replacement that is not proper then, besides the basic cause of action for failure to return security deposit, a petition for declaratory judgment may also be included in the lawsuit.

  • 1. A Petition for Declaratory Judgment action is filed pursuant to Texas Civil Practice and Remedies Code chapter 37.
  • 2. The purpose a declaratory judgment action is to ask the court to decide rights and remedies of the parties to a contract or other written instrument.
  • 3. This means that a tenant filing a declaratory judgment action seeking a declaration that the tenant does not owe certain charges is simply asking the court to issue a judgment (a decision) only on that issue.
  • 4. After a declaratory judgment action is decided the portion of the lawsuit regarding the security deposit may still be litigated.

iii. It may be beneficial to file a lawsuit for both return of security deposit and declaratory judgment because a party that wins in a declaratory judgment action may be entitled to attorney fees from the opposing party even if the security deposit was not withheld in bad faith.


Security Deposit Refunds

  1. Security Deposit Refunds – Generally

a. Texas Property Code § 92.103 requires a landlord to refund a security deposit to a tenant by the 30th day after tenant surrenders the premises.

b. The requirement that a tenant give advance notice of surrender as a condition of refunding the security deposit must be either:

i. Underlined in the lease; OR

ii.  Printed in conspicuous bold print in the lease.

c.  A tenant’s claim to the security deposit takes priority over any claims a landlords creditors may have. This means that a bank loaning money to a landlord does not have first right to a tenant’s security deposit.


  2. What does a tenant need to do ensure security deposit is properly refunded?

a.  Forwarding address – Give the landlord your (you, the tenant) a written statement of your forwarding address for the purpose of refunding the security deposit.

b.  How to give forwarding address – read the lease!!! – Give the forwarding address just like the lease says provide it. Then, after you have complied with the lease, provide the forwarding address in a different manner to confirm the landlord received it.

i. Move out tip 1 – Let’s say you provided forwarding address through an online landlord/tenant portal you may not have access to after you move out. Send a follow up email to the property manager – or even better – send a follow up letter via certified mail return receipt requested (you know, go to the Post Office) to the landlord stating that: “Hey Mr. Landlord, my name is JULIE TENANT, I provided my forwarding address just like the lease said to through the landlord/tenant portal (or whatever), but I am following up with this letter so there is not any confusion of where you can mail my security deposit check. Respectfully, Julie Tenant – former tenant of PROPERTY. Please call or email at the following 888-888-8888; jtenant@email.com.



ii.  Move out tip 2 – take pictures of where you, the tenant, lived after all your belonging are moved out, but before you turn in your keys. This will help document the condition of the property where you lived if landlord claims some of the security deposit is not to be refunded because repairs are necessary.

c.  Landlord Keeping the Security Deposit

i.  A landlord may deduct from your security deposit damages and charges for which you a responsible under the lease. Tex. Prop. Code Ann. § 92.104(a). READ THE LEASE!

ii.  A landlord may not retain any portion of a security deposit to cover normal wear and tear. Tex. Prop. Code Ann. § 92.104(b).

iii.  A landlord is not required to give you, the tenant, a description and itemized list of deductions if:

  • 1. You owe rent when you move out and there is no controversy concerning the amount of rent owed. Tex. Prop. Code Ann. § 92.104(c)(1) – (2).

iv. Provide the FORWARDING ADDRESS – 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. Tex. Prop. Code Ann. § 92.107(a).

  • 1. However, just because you have not provided your forwarding address does not mean you are screwed. A tenant does not forfeit the right to a refund or the right to receive a description a description of damages and charges merely for failing to give a forwarding address to the landlord. SO DO IT – GIVE THE FORWARDING ADDRESS AS SOON AS YOU REALIZE THERE IS AN ISSUE!!!
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