Texas Security Deposit Law: What Landlords Can (and Can't) Deduct in 2026

That last sentence is why deposit disputes are the most expensive small mistake a Texas landlord can make: a $2,000 deposit mishandled becomes a $6,100+ liability before your own legal costs. Here is the full playbook — the same one we run on move-outs across Houston, Dallas–Fort Worth, Austin, and San Antonio.

The 30-day clock — and what actually starts it

The clock starts when the tenant surrenders the premises, not when the lease ends on paper. Two wrinkles landlords miss:

• Forwarding address (§92.107): you are not obligated to refund or send the itemized list until the tenant gives you a written forwarding address — but the tenant does not forfeit the deposit by forgetting to provide one. Once the address arrives, your obligation is live. A missing address is not permission to keep the money.
• Advance-notice conditions (§92.103(b)): a lease clause requiring move-out notice before the deposit is refundable only works if it is underlined or in conspicuous bold print. Buried in standard text, it is unenforceable.

What you can deduct

Under §92.104, you may deduct damages and charges the tenant is legally liable for, or that the lease specifically allows. In practice:

• Unpaid rent and lease fees
• Damage beyond normal wear and tear — broken fixtures, pet damage, holes beyond nail size, burns and stains from misuse
• Unreturned keys, remotes, or devices where the lease prices them
• Cleaning, only to the extent the lease requires it and the condition exceeds normal use

If you deduct anything, you must give the tenant a written description and itemized list of every deduction. The only exception: the tenant owes rent at surrender and there is no dispute about the amount.

What you can't deduct — “normal wear and tear”

Texas defines it in the statute (§92.001(4)): deterioration that results from intended use of the home — including breakage or malfunction due to age or deteriorated condition — but not deterioration from negligence, carelessness, accident, or abuse by the tenant, their household, or guests.

• Wear and tear (not deductible): faded paint, minor scuffs, carpet worn flat in traffic paths, loose grout, sun-faded blinds.
• Damage (deductible, with evidence): pet urine in subfloor, crayon on walls, broken blinds, cigarette burns, unreported leaks that became rot.

The bad-faith trap (§92.109)

Bad-faith retention costs $100 + three times the wrongfully withheld amount + the tenant's attorney's fees. Bad-faith failure to send the itemized list forfeits your right to withhold anything at all — and in a deposit suit, the burden of proving the withholding was reasonable sits on the landlord, not the tenant. Texas courts can presume bad faith when a landlord blows the 30-day deadline. The deadline is not a suggestion.

The documentation that wins disputes

Every deposit dispute is won or lost on evidence created before it starts:

• A dated move-in condition report signed by the tenant
• Timestamped move-in and move-out photo sets, shot room-by-room from the same angles
• Receipts or contractor invoices for every repair you deduct
• The itemized list sent by trackable mail within 30 days

Deposit handling is one of those tasks where the cost of an error dwarfs the cost of doing it right. Flat Fee Landlord runs this exact protocol on every move-out — inspections, statutory timelines, itemization, and refunds — for owners across Houston, Dallas–Fort Worth, Austin, and San Antonio, for a flat monthly fee that does not rise with your rent. If you would rather never think about §92.109 again, get an instant quote.

Frequently asked questions

How long does a landlord have to return a security deposit in Texas?

30 days from the date the tenant surrenders the premises (§92.103). You may wait for the tenant's written forwarding address, but they don't forfeit the deposit by failing to send one.

Can I deduct for repainting or carpet cleaning?

Only when the condition exceeds normal wear and tear or the lease specifically requires it. Traffic-path carpet wear and faded paint are on the owner; pet stains and damage from misuse are on the tenant.

Is there a cap on security deposits in Texas?

No statutory cap — one month's rent is the common market norm.

Sources & last reviewed

Texas Property Code, Chapter 92: §92.001(4) (normal wear and tear), §92.103 (obligation to refund), §92.104 (retention and accounting), §92.107 (forwarding address), §92.109 (landlord liability) — statutes.capitol.texas.gov. Flat Fee Landlord proof points per company records. This article is general information, not legal advice — consult a Texas attorney for your specific situation. Last reviewed: June 2026.