Do you own and rent properties in Texas?
If so, you’re subject to a group of laws passed by Texas legislature: landlord-tenant laws. These laws regulate the relationship between you and your tenants in addition to the landlord tenant rights and responsibilities in the state.
If you’re a Texas landlord and aren’t familiar with these laws, reviewing them should be your top priority. Violations can be costly in more ways than one: For example, breaking any Texas landlord-tenant law might mean expensive fees, time in court, complaints from tenants, or all three.
For this reason, even if you typically let a lawyer handle the legal aspects of your properties, you should still be familiar with landlord-tenant laws in your state.
This article reviews some of the most important landlord-tenant laws to know in the state of Texas.
2-Day Grace Period
One of the key landlord-tenant laws to know in Texas is the grace period. The rent grace period Texas enforces is two days: Renters in Texas have 48 hours to pay rent before it is considered legally late.
What does this mean for landlords? Landlord in Texas cannot enforce any late fees (or send an eviction notice, for that matter) before two days after the official rent due date have passed. Once those two days have passed, you can then apply any late fees.
Late Fees
Speaking of late fees, these, too, are regulated in Texas.
Rent late fees Texas landlords must abide by are determined by state laws. In Texas, late fees must be “reasonable.” Texas law also outlines what counts as a reasonable late fee: For properties with four or fewer units this means 12% of monthly rent. If you own more than four units, late fees must not exceed 10% of the monthly rent.
Security Deposit Return Period
Security deposit law in Texas is relatively lax in comparison to many other states. Unlike many neighboring states, Texas does not regulate security deposit amounts. This means you may charge any reasonable amount for a security deposit. The key word “reasonable” is included here because unreasonably high security deposits usually won’t hold up in court if a tenant were to contest it legally. Typically, a security deposit equal to one to two months’ rent is considered reasonable.
However, Texas law does designate how long landlords have to return a security deposit after a tenant moves out: 30 days. Texas landlords must also disclose an itemized list of damages and written description of any deductions from the security deposit. This list should be returned to the tenant with the remainder of the security deposit within the 30.
Eviction Notice
It’s also important to understand the eviction process as a landlord in Texas. Evictions vary quite considerably by state, so knowing the specific procedures involved in removing a tenant is critical to ensuring the process goes smoothly and without any unnecessary hiccups.
When a tenant in Texas violates their lease agreement, landlords must first send a written 3-day notice to quit. After this notice period expires, and if the tenant has not moved out of their unit, you may then file an eviction lawsuit, or forcible detainer suit.
Landlords must also follow all procedures outlined in law for terminating a tenancy.
Evictions in any state are a difficult and expensive process. It’s important to remember the consequences of an eviction in Texas before pursuing one. Landlord insurance in Texas may cover some of the financial costs of an eviction, but be sure to look into the details of your specific policy to be certain.
Conclusion
Texas’s state laws probably aren’t the light reading you were likely looking for this spring. But having knowledge of the key landlord tenant laws in Texas is the only way to avoid legal action and protect your properties. If you want your rental business to remain sustainable in the long term, understanding landlord-tenant laws is the first place to start.
