Renting Out Your Property in Texas: A Landlord's Guide
Renting out property in Texas requires understanding specific state laws that govern landlord-tenant relationships, including security deposit limits, notice requirements, and property maintenance obligations. Texas landlords benefit from relatively landlord-friendly laws but must still comply with fair housing regulations, disclosure requirements, and proper eviction procedures to avoid legal complications.
Texas property owners should be aware that while the state offers fewer tenant protections than many others, failing to follow proper procedures for lease agreements, maintenance, and evictions can result in significant legal and financial consequences. Always ensure your rental practices comply with both Texas Property Code Chapter 92 and applicable federal housing laws.
Key Considerations
Scenarios
Decisions
Scenarios
Decisions
Scenarios
Decisions
Relevant Documents
Landlord's Rules and Regulations
A supplementary document to the lease that outlines specific rules for the property, such as quiet hours, guest policies, and maintenance responsibilities.
Move-In/Move-Out Inspection Checklist
A document that records the condition of the rental property before the tenant moves in and after they move out, which helps determine if any damage occurred during the tenancy.
Notice of Entry Form
A document used by landlords to notify tenants of their intent to enter the rental property, typically required by state law with specific advance notice periods.
Rental Application Form
A form used to collect information about potential tenants, including employment history, income, references, and authorization for background and credit checks.
Residential Lease Agreement
A legally binding contract between a landlord and tenant that outlines the terms and conditions of the rental arrangement, including rent amount, security deposit, lease duration, and other important provisions.
Security Deposit Receipt
A document acknowledging the landlord's receipt of the security deposit, including the amount, date received, and where the deposit will be held.
Relevant Laws
Texas Property Code Chapter 92 - Residential Tenancies
This is the primary law governing landlord-tenant relationships in Texas. It covers essential aspects of renting residential property including security deposits, repairs, lease agreements, and eviction procedures. As a landlord in Texas, you must comply with these regulations which establish your rights and responsibilities.
Security Deposit Requirements (Texas Property Code § 92.101-92.109)
Texas law does not limit how much you can charge for a security deposit, but requires you to return it within 30 days after the tenant moves out. You must provide an itemized list of deductions if you withhold any portion of the deposit. Failure to comply can result in penalties including being liable for three times the wrongfully withheld amount plus attorney's fees.
Repair and Habitability Requirements (Texas Property Code § 92.051-92.061)
As a Texas landlord, you must keep the rental property habitable and promptly make repairs that affect health and safety. Tenants must provide written notice of needed repairs, and you generally have 7 days to respond. For certain conditions that threaten health or safety, the response time may be shorter. Failure to make timely repairs can result in penalties.
Fair Housing Act (Federal Law)
This federal law prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, or disability. As a Texas landlord, you must comply with these anti-discrimination provisions when advertising your property, selecting tenants, and throughout the landlord-tenant relationship.
Texas Fair Housing Act (Texas Property Code Chapter 301)
Texas state law also prohibits housing discrimination and works in conjunction with federal fair housing laws. The Texas Fair Housing Act is enforced by the Texas Workforce Commission and provides similar protections against discrimination in housing.
Eviction Procedures (Texas Property Code Chapter 24)
Texas has specific legal procedures for evicting tenants that must be strictly followed. You must provide proper notice (typically 3 days unless the lease specifies otherwise), file an eviction suit in justice court, and obtain a judgment before removing a tenant. Self-help evictions (changing locks, removing belongings, etc.) are illegal and can result in liability.
Smoke Alarm and Carbon Monoxide Detector Requirements (Texas Property Code § 92.251-92.2611)
Texas law requires landlords to install smoke alarms in specific locations in rental properties. For properties built after 1993 or with certain fuel-burning appliances or attached garages, carbon monoxide alarms may also be required. These safety devices must be in good working order at the beginning of a tenancy.
Lead-Based Paint Disclosure (Federal Law)
For properties built before 1978, federal law requires landlords to disclose known information about lead-based paint hazards before leases take effect. You must provide tenants with an EPA-approved information pamphlet and include specific disclosure language in leases.
Regional Variances
Major Metropolitan Areas
Austin has additional tenant protections including a required 'Notice of Tenant Rights' with eviction notices. The city also has specific ordinances requiring landlords to provide functioning AC and has stricter repair timelines than state law. Additionally, Austin enforces source-of-income protection for housing vouchers in most cases, which is not required statewide.
Dallas requires landlords to register rental properties with the city and pay annual fees. The city has a 'Right to Lease' ordinance prohibiting discrimination based on source of income for housing vouchers, criminal history (with limitations), and requires minimum lease terms in certain situations. Dallas also has enhanced code enforcement for rental properties.
Houston has fewer local rental regulations than other major Texas cities, generally following state law. However, Houston does have specific flood disclosure requirements due to hurricane and flooding risks. The city also has a Fair Housing Ordinance that prohibits discrimination based on categories not covered by state law, including sexual orientation and gender identity.
San Antonio requires rental property registration for properties with multiple code violations. The city has enacted a 'Risk Mitigation Policy' that provides relocation assistance for displaced tenants in certain circumstances. San Antonio also has enhanced protections against discrimination based on source of income for veterans.
Border Regions
El Paso has unique rental regulations due to its border location, including additional documentation requirements for international tenants. The city has enacted ordinances requiring landlords to provide information about tenant rights in both English and Spanish. El Paso also has specific water conservation requirements for rental properties.
Laredo has special rental housing codes related to international commerce and cross-border employment. Landlords must provide specific disclosures regarding international tenant rights. The city also has enhanced health and safety requirements for rental properties due to its location and climate.
Coastal Areas
Galveston has special requirements for rental properties related to hurricane and flood risks. Landlords must provide specific disclosures about flood zones, evacuation routes, and insurance requirements. Short-term vacation rentals in Galveston are subject to additional registration, taxation, and operational requirements not found in other parts of Texas.
Corpus Christi has additional requirements for rental properties in flood-prone areas, including specific disclosure requirements. The city has enacted ordinances requiring landlords to maintain properties to withstand coastal weather conditions. Short-term rentals in certain zones require special permits and are subject to hotel occupancy taxes.
College Towns
College Station has specific ordinances addressing student housing, including occupancy limits (no more than 4 unrelated persons per household in most zones). The city has noise ordinances that are strictly enforced in areas with high student populations. Landlords must register rental properties and comply with additional inspection requirements.
Denton has enacted ordinances specifically addressing student housing near the University of North Texas and Texas Woman's University. The city limits occupancy to 3 unrelated individuals in single-family zoned areas. Denton also has enhanced code enforcement for rental properties in neighborhoods with high student populations.
Suggested Compliance Checklist
Research Texas Landlord-Tenant Laws
1 days after startingFamiliarize yourself with Texas Property Code Chapter 92, which governs residential tenancies. Key areas to understand include security deposit limits, repair obligations, entry notice requirements, and eviction procedures. The Texas Apartment Association and Texas Real Estate Commission websites offer helpful resources for landlords.
Obtain Required Business Licenses
7 days after startingCheck with your local city and county governments to determine if you need a business license, rental permit, or certificate of occupancy to legally rent your property. Requirements vary by municipality in Texas.
Register with Texas Comptroller
14 days after startingIf you'll be collecting sales tax on short-term rentals (less than 30 days), register with the Texas Comptroller of Public Accounts. Long-term residential rentals typically don't require sales tax collection in Texas.
Prepare Residential Lease Agreement
21 days after startingDraft a comprehensive lease agreement that complies with Texas law. Include terms regarding rent amount, due date, late fees (Texas caps late fees at 12% of monthly rent), security deposit, maintenance responsibilities, and other key provisions. Consider using the Texas Apartment Association's model lease as a starting point.
Create Rental Application Form
21 days after startingDevelop an application form to screen potential tenants. Include sections for personal information, rental history, employment details, income verification, and authorization for background and credit checks. Ensure compliance with Fair Housing laws by avoiding questions about protected characteristics.
Prepare Lead-Based Paint Disclosure Form
21 days after startingFor properties built before 1978, federal law requires landlords to disclose known information about lead-based paint hazards. Provide tenants with an EPA-approved lead hazard information pamphlet and keep signed disclosure forms for at least three years.
Create Move-In/Move-Out Inspection Checklist
21 days after startingDevelop a detailed property condition form to document the state of the rental unit before move-in and after move-out. This helps prevent disputes over security deposit deductions. Include photographs dated with timestamps as additional documentation.
Draft Security Deposit Receipt
21 days after startingCreate a receipt for security deposits that includes the amount received, date of receipt, and a statement explaining the conditions under which the deposit may be withheld. Texas law doesn't specify a maximum security deposit amount, but landlords must return deposits within 30 days after a tenant moves out.
Establish Landlord's Rules and Regulations
21 days after startingCreate a document outlining house rules regarding noise, guests, parking, trash disposal, pet policies, and other matters. Ensure these rules don't contradict terms in the lease agreement or violate tenant rights under Texas law.
Prepare Notice of Entry Form
21 days after startingWhile Texas doesn't specify how much notice landlords must give before entering a rental unit, it's good practice to provide at least 24 hours' notice. Create a form to document when and why you need to enter the property for inspections, repairs, or showings.
Set Up Property Insurance
28 days after startingObtain landlord insurance (also called rental property insurance) to protect your investment. This typically covers the building, liability protection, and lost rental income. Require tenants to obtain renter's insurance in your lease agreement.
Establish Rent Collection System
28 days after startingSet up a system for collecting rent payments, whether through direct deposit, online payment platforms, or physical checks. Document your rent collection procedures in the lease agreement.
Create Maintenance Request Process
28 days after startingEstablish a clear procedure for tenants to report maintenance issues. Texas law requires landlords to make repairs that materially affect health and safety within a reasonable time after receiving notice. For certain conditions, written notice and a 7-day repair period apply before tenants can exercise remedies.
Ensure Property Meets Safety Requirements
35 days after startingVerify that your rental property meets all Texas safety requirements, including functioning smoke detectors (required in all bedrooms), secure door and window locks, and proper security devices. Texas Property Code Section 92.153-92.164 specifies required security devices.
Register with Local Rental Registry (If Applicable)
35 days after startingSome Texas cities require landlords to register their rental properties. Check with your local municipality to determine if registration is required and complete the process if necessary.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Research Texas Landlord-Tenant Laws | Familiarize yourself with Texas Property Code Chapter 92, which governs residential tenancies. Key areas to understand include security deposit limits, repair obligations, entry notice requirements, and eviction procedures. The Texas Apartment Association and Texas Real Estate Commission websites offer helpful resources for landlords. | - | 1 |
| Obtain Required Business Licenses | Check with your local city and county governments to determine if you need a business license, rental permit, or certificate of occupancy to legally rent your property. Requirements vary by municipality in Texas. | - | 7 |
| Register with Texas Comptroller | If you'll be collecting sales tax on short-term rentals (less than 30 days), register with the Texas Comptroller of Public Accounts. Long-term residential rentals typically don't require sales tax collection in Texas. | - | 14 |
| Prepare Residential Lease Agreement | Draft a comprehensive lease agreement that complies with Texas law. Include terms regarding rent amount, due date, late fees (Texas caps late fees at 12% of monthly rent), security deposit, maintenance responsibilities, and other key provisions. Consider using the Texas Apartment Association's model lease as a starting point. | Residential Lease Agreement | 21 |
| Create Rental Application Form | Develop an application form to screen potential tenants. Include sections for personal information, rental history, employment details, income verification, and authorization for background and credit checks. Ensure compliance with Fair Housing laws by avoiding questions about protected characteristics. | Rental Application Form | 21 |
| Prepare Lead-Based Paint Disclosure Form | For properties built before 1978, federal law requires landlords to disclose known information about lead-based paint hazards. Provide tenants with an EPA-approved lead hazard information pamphlet and keep signed disclosure forms for at least three years. | Lead-Based Paint Disclosure Form | 21 |
| Create Move-In/Move-Out Inspection Checklist | Develop a detailed property condition form to document the state of the rental unit before move-in and after move-out. This helps prevent disputes over security deposit deductions. Include photographs dated with timestamps as additional documentation. | Move-In/Move-Out Inspection Checklist | 21 |
| Draft Security Deposit Receipt | Create a receipt for security deposits that includes the amount received, date of receipt, and a statement explaining the conditions under which the deposit may be withheld. Texas law doesn't specify a maximum security deposit amount, but landlords must return deposits within 30 days after a tenant moves out. | Security Deposit Receipt | 21 |
| Establish Landlord's Rules and Regulations | Create a document outlining house rules regarding noise, guests, parking, trash disposal, pet policies, and other matters. Ensure these rules don't contradict terms in the lease agreement or violate tenant rights under Texas law. | Landlord's Rules and Regulations | 21 |
| Prepare Notice of Entry Form | While Texas doesn't specify how much notice landlords must give before entering a rental unit, it's good practice to provide at least 24 hours' notice. Create a form to document when and why you need to enter the property for inspections, repairs, or showings. | Notice of Entry Form | 21 |
| Set Up Property Insurance | Obtain landlord insurance (also called rental property insurance) to protect your investment. This typically covers the building, liability protection, and lost rental income. Require tenants to obtain renter's insurance in your lease agreement. | - | 28 |
| Establish Rent Collection System | Set up a system for collecting rent payments, whether through direct deposit, online payment platforms, or physical checks. Document your rent collection procedures in the lease agreement. | - | 28 |
| Create Maintenance Request Process | Establish a clear procedure for tenants to report maintenance issues. Texas law requires landlords to make repairs that materially affect health and safety within a reasonable time after receiving notice. For certain conditions, written notice and a 7-day repair period apply before tenants can exercise remedies. | - | 28 |
| Ensure Property Meets Safety Requirements | Verify that your rental property meets all Texas safety requirements, including functioning smoke detectors (required in all bedrooms), secure door and window locks, and proper security devices. Texas Property Code Section 92.153-92.164 specifies required security devices. | - | 35 |
| Register with Local Rental Registry (If Applicable) | Some Texas cities require landlords to register their rental properties. Check with your local municipality to determine if registration is required and complete the process if necessary. | - | 35 |
Frequently Asked Questions
In Texas, a valid lease agreement should be in writing if it's for longer than one year (though written leases are recommended for all terms). It must include the names of all parties, property description, rental amount, payment terms, lease duration, and signatures of all parties. Texas doesn't require notarization for residential leases, but having clear terms regarding security deposits, maintenance responsibilities, and entry rights is strongly recommended.
Texas law doesn't set a maximum limit on security deposits, allowing landlords to charge any reasonable amount. However, market standards typically range from one to two months' rent. You must return the security deposit within 30 days after the tenant moves out, less any deductions for damages beyond normal wear and tear. If you make deductions, you must provide an itemized list explaining each charge.
Texas landlords must maintain habitable living conditions, including structural elements, plumbing, heating, and air conditioning systems. You must repair conditions that materially affect health and safety or the use of the property. Tenants must provide written notice of needed repairs, and you generally have 7 days to make repairs (or a reasonable time depending on circumstances). Failure to make timely repairs can result in tenants' rights to terminate the lease, repair and deduct, or sue for damages.
Texas doesn't have a specific state law requiring advance notice before entering a rental property. However, the lease should specify entry terms, and courts generally recognize a tenant's right to quiet enjoyment. Best practice is to provide at least 24 hours' notice before entering for non-emergency reasons. For emergencies threatening property or safety, immediate entry is permitted. Always include entry provisions in your lease agreement to avoid disputes.
For month-to-month tenancies in Texas, landlords must provide at least 30 days' written notice before implementing a rent increase. For fixed-term leases, rent cannot be increased during the lease term unless the lease specifically allows for it. Once a fixed-term lease expires, you can increase the rent for a renewal with proper notice. There are no rent control laws in Texas, so there's no legal limit on how much you can increase the rent.
To evict a tenant in Texas, you must: (1) Provide proper written notice (typically 3 days for non-payment of rent, but check your lease); (2) File an eviction lawsuit (forcible entry and detainer) if the tenant doesn't comply; (3) Attend the court hearing; (4) If you win, wait for the constable to execute a writ of possession (usually 5 days after judgment). Self-help evictions (changing locks, removing belongings, shutting off utilities) are illegal in Texas and can result in liability for damages.
In Texas, landlords must disclose: (1) Information about ownership and management of the property; (2) Known lead-based paint hazards for properties built before 1978 (federal requirement); (3) Flooding history if the property has flooded in the past five years; (4) Any conditions materially affecting health and safety; (5) If utilities are submetered or allocated; and (6) The existence of any outstanding HOA violations. Failure to make required disclosures can result in penalties and potential liability.
Yes, Texas landlords can generally refuse to rent to tenants with pets or impose restrictions on the types, sizes, or number of pets allowed. However, service animals and emotional support animals for persons with disabilities are not considered pets under fair housing laws, and you must make reasonable accommodations for them, regardless of your pet policy. You can charge additional pet deposits (but not for service/support animals), though the total security deposit must still be reasonable.
In Texas, if a tenant abandons property after moving out, you must make reasonable efforts to notify the former tenant about the property and give them a reasonable time to reclaim it (typically 10-30 days). If the property remains unclaimed after this period, you may dispose of it. For valuable items, consider documenting everything with photos and sending a certified letter to the tenant's last known address. If the property is of significant value, consult with an attorney before disposal to avoid potential liability.