Texas landlords sometimes receive fines from cities, counties, housing authorities, or other governmental entities because of conditions at rental property. When that happens, a natural question arises: Can the landlord simply pass the fine along to the tenant?

Not necessarily.

Texas Property Code § 92.018 contains a straightforward but important limitation on when a residential landlord may charge a tenant for a governmental fine. The statute can matter when a landlord and tenant disagree about who was actually responsible for the condition that resulted in the citation.

What Does Texas Property Code § 92.018 Say?

Texas Property Code § 92.018(b) provides:

“A landlord or a landlord's manager or agent may not charge or seek reimbursement from the landlord's tenant for the amount of a fine imposed on the landlord by a governmental entity unless the tenant or another occupant of the tenant's dwelling actually caused the damage or other condition on which the fine is based.”

That language creates an important rule: the fact that a governmental fine relates to a tenant's rental property does not automatically make the tenant responsible for paying it.

The tenant or another occupant of the dwelling must have actually caused the damage or condition underlying the fine. (Texas Statutes)

What Counts as a “Governmental Entity”?

Section 92.018 defines a governmental entity broadly as “the state, an agency of the state, or a political subdivision of the state.”

A political subdivision can include local governmental bodies such as a city or county. Thus, the statute can become relevant when a landlord receives a governmental fine arising from the condition or use of residential rental property.

The important question is not merely who received the fine. The statute specifically contemplates a fine imposed on the landlord. The important question for reimbursement is who actually caused the underlying condition. (Texas Statutes)

A Landlord Cannot Automatically Pass Every Fine to the Tenant

Suppose a city inspects a rental property and fines the landlord because of a condition involving the property.

The landlord cannot necessarily respond by adding the amount of the fine to the tenant's ledger.

Section 92.018 requires a causal connection between the tenant—or another occupant of the tenant's dwelling—and the damage or condition that resulted in the fine.

For example, imagine that a city fines a landlord because of a condition caused by the deterioration of the property itself. If neither the tenant nor another occupant actually caused that condition, § 92.018 may prevent the landlord from simply demanding reimbursement for the fine.

On the other hand, suppose an occupant intentionally damages property, and that damage causes a governmental entity to fine the landlord. The statutory exception may apply because an occupant actually caused the condition on which the fine was based.

The distinction is highly factual.

What If the Lease Says the Tenant Must Pay All Fines?

A lease provision should not be viewed in isolation from Texas statutory law.

Texas Property Code Chapter 92 contains numerous statutory rules governing residential landlord-tenant relationships. Section 92.018 specifically says that a landlord or the landlord's manager or agent “may not charge or seek reimbursement” for the governmental fine unless the tenant or another occupant actually caused the underlying condition. (Texas Statutes)

Accordingly, a broadly worded lease provision purporting to make the tenant responsible for every governmental fine does not necessarily answer the statutory question.

Landlords and tenants should determine why the fine was imposed and what conduct or property condition caused it.

The Word “Actually” Matters

One of the most interesting words in § 92.018 is “actually.”

The statute does not say that reimbursement is permitted merely because the tenant occupied the property when the violation occurred. It says the tenant or another occupant must have “actually caused” the damage or other condition.

That can create a genuine factual dispute.

Consider a damaged exterior stairway. If the deterioration resulted from age, weather, or inadequate maintenance, the tenant's mere use of the stairway would not necessarily mean that the tenant caused the condition.

But if a tenant or occupant physically damaged the stairway through misuse, the analysis could be very different.

Evidence therefore matters.

What Evidence Could Matter in a Dispute Over a Governmental Fine?

When a landlord seeks reimbursement from a tenant, useful evidence may include the governmental citation itself, inspection reports, photographs, correspondence with the governmental agency, maintenance records, repair requests, move-in condition documentation, witness testimony, and communications between the landlord and tenant.

The timing of the problem can also matter.

If photographs show that a condition existed before the tenant moved into the property, it may be difficult to contend that the tenant actually caused it. Conversely, evidence that the condition arose after particular conduct by the tenant or another occupant may support reimbursement.

The precise facts will determine the result.

Section 92.018 Does Not Mean Tenants Can Never Be Charged

Section 92.018 is not a blanket immunity for tenants.

Its rule is narrower: a landlord generally cannot make a tenant reimburse a governmental fine imposed on the landlord unless the tenant or another occupant actually caused the damage or condition underlying that fine.

A tenant who causes the underlying problem therefore may fall squarely within the statutory exception.

This makes § 92.018 different from a rule simply declaring that governmental fines are always a landlord's responsibility. Texas law instead focuses on actual responsibility for the underlying condition. (Texas Statutes)

Why Texas Landlords Should Document the Cause of a Violation

For landlords, documentation can be particularly important.

If a landlord believes that a tenant caused a condition resulting in a governmental fine, simply producing the fine may not establish the tenant's responsibility. The fine establishes that the government penalized the landlord; § 92.018 makes the cause of the underlying condition important to whether reimbursement can be sought from the tenant.

Photographs, written notices, repair invoices, inspection reports, and contemporaneous communications can help establish what occurred.

Landlords should also avoid automatically treating every governmental assessment connected with a rental unit as a tenant charge without first determining whether § 92.018 applies.

Why Texas Tenants Should Ask What Caused the Fine

A tenant who receives a demand for reimbursement should likewise determine:

• What governmental entity imposed the fine?
• What specific violation or condition resulted in the fine?
• Was the fine actually imposed on the landlord?
• Did the tenant or another occupant actually cause the condition?
• What evidence establishes the cause?

A tenant's responsibility cannot necessarily be determined simply by looking at the address appearing on a citation.

Landlord-Tenant Disputes Often Turn on Small Statutory Details

Texas landlord-tenant law contains many highly specific statutory rules. Section 92.018 is a good example.

A landlord may genuinely have been fined because of a condition at a tenant's dwelling, yet that does not automatically establish that the tenant must reimburse the landlord. Conversely, a tenant cannot necessarily avoid responsibility when the evidence shows that the tenant or another occupant actually caused the condition.

The statutory language makes causation the central issue.

For landlords, tenants, and property managers, understanding that distinction before demanding or refusing payment can prevent a relatively small governmental fine from becoming a much larger landlord-tenant dispute.

Talk to a Texas Landlord-Tenant Attorney

Disputes concerning rental charges, lease obligations, property conditions, evictions, and other landlord-tenant issues can depend on both the language of the lease and the Texas Property Code.

David C. Barsalou, Attorney at Law, PLLC represents clients in landlord-tenant and real-estate matters in Texas. If you have a dispute involving a residential lease, governmental fine, eviction, or other rental-property issue, an attorney can review the relevant documents and determine what Texas law may require.

This article is for general informational purposes only and does not constitute legal advice. Every landlord-tenant dispute depends on its particular facts and applicable law.

At David C. Barsalou, Attorney at Law, PLLC, we help clients navigate business, family, tax, estate planning, and real estate matters ranging from document drafting to litigation with clarity and confidence. If you’d like guidance on your situation, schedule a consultation today. Call us at (713) 397-4678, email barsalou.law@gmail.com, or reach us through our Contact Page. We’re here to help you take the next step.