When a residential lease ends, one of the most common disputes between landlords and tenants involves the security deposit. Many tenants believe they are automatically entitled to a full refund, while many landlords assume they can keep part or all of the deposit for repairs. Texas law provides detailed rules governing both situations.

Understanding these rules can help tenants recover money they are owed and help landlords avoid costly penalties.

What Is a Security Deposit?

The Texas Property Code defines a security deposit as:

"any advance of money, other than a rental application deposit or an advance payment of rent, that is intended primarily to secure performance under a lease of a dwelling." Tex. Prop. Code § 92.102.

In other words, the security deposit serves as protection for the landlord if the tenant fails to comply with the lease, damages the property, or leaves unpaid obligations behind.

When Must a Landlord Return a Security Deposit?

Texas Property Code § 92.103(a) provides:

"Except as provided by Section 92.107, the landlord shall refund a security deposit to the tenant on or before the 30th day after the date the tenant surrenders the premises."

The thirty-day deadline is important. Once the tenant has surrendered possession of the property, the clock begins to run.

Many disputes arise because tenants believe the deadline starts when they move out, while landlords sometimes believe it starts when they inspect the property. The statute focuses on surrender of the premises.

Can a Landlord Keep Part of the Deposit?

Yes.

Texas Property Code § 92.104(a) provides:

"Before returning a security deposit, a landlord may deduct from the deposit damages and charges for which the tenant is legally liable under the lease or as a result of breaching the lease."

Common deductions may include:

• Unpaid rent;
• Unpaid utility charges if authorized by the lease;
• Excessive property damage;
• Cleaning expenses beyond ordinary wear and tear;
• Costs associated with lease violations.

However, landlords cannot simply make deductions because they are unhappy with the property's condition.

Ordinary Wear and Tear Is Different

One of the most litigated concepts in Texas landlord-tenant law is "normal wear and tear."

Texas Property Code § 92.001(4) defines normal wear and tear as:

"deterioration that results from the intended use of a dwelling, including, for a tenant's use, breakage or malfunction due to age or deteriorated condition, but the term does not include deterioration that results from negligence, carelessness, accident, or abuse of the premises."

Examples of ordinary wear and tear may include:

• Minor carpet wear from normal use;
• Small nail holes from hanging pictures;
• Faded paint;
• Aging appliances.

By contrast, large holes in walls, broken fixtures, pet damage, or intentional destruction may justify deductions.

Must the Landlord Provide an Itemized List?

Usually yes.

Texas Property Code § 92.104(c) states:

"If the landlord retains all or part of a security deposit, the landlord shall give to the tenant a written description and itemized list of all deductions."

This requirement often becomes the centerpiece of a lawsuit. A landlord who simply keeps the money without explaining why may create significant legal exposure.

Does the Tenant Have Any Obligations?

Yes.

Under Texas Property Code § 92.107(a), a landlord is not required to provide an itemized accounting or refund until the tenant gives the landlord a written forwarding address.

Many tenants do not realize this requirement exists.

A tenant who moves out without providing a forwarding address may unintentionally delay the return of the deposit.

What Happens If a Landlord Acts in Bad Faith?

Texas law imposes potentially severe consequences.

Texas Property Code § 92.109(a) provides:

"A landlord who in bad faith retains a security deposit in violation of this chapter is liable for an amount equal to the sum of $100, three times the portion of the deposit wrongfully withheld, and the tenant's reasonable attorney's fees in a suit to recover the deposit."

This statute can transform a relatively small security deposit dispute into a much larger legal problem.

For example, wrongfully withholding a $1,000 deposit may expose a landlord to several thousand dollars in liability once statutory damages and attorney's fees are added.

Practical Advice for Landlords

Landlords should:

• Conduct move-in and move-out inspections;
• Take photographs before and after tenancy;
• Maintain repair invoices and receipts;
• Keep detailed records of deductions;
• Send itemized accounting within the statutory deadline;
• Avoid withholding deposits unless supported by documentation.

Practical Advice for Tenants

Tenants should:

• Provide a forwarding address in writing;
• Photograph the property before moving out;
• Keep copies of the lease and communications;
• Request documentation supporting deductions;
• Act promptly if the deposit is not returned.

Final Thoughts

Security deposit disputes are among the most common landlord-tenant conflicts in Texas. Fortunately, Texas Property Code Chapter 92 provides a detailed framework governing when deposits must be returned, what deductions are permitted, and what remedies are available when the law is violated.

Whether you are a landlord seeking to protect your property or a tenant seeking the return of your deposit, understanding these statutory requirements can prevent unnecessary litigation and help preserve your legal rights.

Disclaimer: This article is for educational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship. If you have questions regarding a specific landlord-tenant dispute, consult a qualified Texas attorney.

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.