Texas Security Deposit Laws (2026 Guide)

Texas Security Deposit Law Explained (§§92.101–92.109)

The Forwarding Address Rule (§92.107)

In Texas, simply moving out on time is not enough. Under Texas Property Code §92.107, a landlord is not obligated to return your deposit or provide an itemized list of deductions until you give them a written statement of your forwarding address.

Why it matters: Texas law generally requires landlords to return a security deposit within 30 days after the tenant surrenders the premises. However, under Texas Property Code §92.107, a landlord is not obligated to return the deposit or provide an accounting until the tenant supplies a written forwarding address.

Best practices: Always provide your forwarding address in writing—ideally sent via certified mail or hand-delivered with a receipt—so you have written proof that the landlord received it. Importantly, even if you forget to provide an address immediately when you move out, you do not permanently lose your right to a refund. Once a forwarding address is eventually provided, the landlord's obligation to account for or return the deposit becomes active.

Source: Texas Property Code §92.107

Bad-Faith Retention & Statutory Damages (§92.109)

What happens if your landlord simply ignores the 30-day deadline or keeps your money dishonestly? Texas law offers powerful penalties for landlords who act in "bad faith."

Presumption of Bad Faith: If a landlord fails to return the deposit or provide the required itemized list of deductions within 30 days of you moving out and providing an address, the law automatically presumes the landlord acted in bad faith. The burden of proof shifts entirely onto the landlord to prove otherwise.

Damages Available: A landlord found to have unlawfully kept a deposit in bad faith is liable for:

• A statutory penalty of $100
• Three times the portion of the deposit wrongfully withheld
• Reasonable attorney's fees in a lawsuit

Source: Texas Property Code §92.109

Records, Documentation, & Proof (§92.104 & §92.106)

Texas law requires landlords to be meticulous. Under §92.106, landlords must maintain accurate records of all security deposits.

If a landlord deducts money from your deposit, they must provide a written, itemized description of the damages or charges. If you take the landlord to court, §92.109(c) makes it explicitly clear: the landlord bears the burden of proving that the retention of any portion of the security deposit was reasonable. Documentation is critical, and landlords who deduct for vague or undocumented reasons frequently lose in front of a judge.

Source: Texas Property Code §92.106 & §92.109(c)

Replacement Tenant Protection (§92.1031)

If a tenant does not occupy the dwelling but a satisfactory replacement tenant takes possession before the lease begins, Texas law generally prevents the landlord from automatically retaining the entire security deposit.

A landlord may retain only:

• A lease cancellation fee agreed to in the lease; or
• Actual replacement-related expenses reasonably incurred in securing the replacement tenant.

This rule helps protect tenants from losing an entire deposit when a replacement tenant fills the unit before the lease commencement date.

Source: Texas Property Code §92.1031

Other Important Texas Protections

• Change of Ownership: If the property is sold, the new owner assumes responsibility for the security deposit and must provide you with a written acknowledgment of the exact amount (§92.105).
• Tenant Claim Priority: A tenant's claim to a security deposit takes priority over the claims of any creditor of the landlord, including a trustee in bankruptcy (§92.103(c)).