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Landlord-Tenant Law

Texas security deposit law: the 30-day refund, the forwarding address and bad faith

Texas sets no cap on deposits but gives landlords 30 days after move-out to refund or itemise, once the tenant gives a forwarding address. Bad faith costs $100 plus three times the amount withheld.

PTThe Property Tool Team·Oct 19, 2026·7 min read

Texas regulates deposits in Property Code chapter 92, subchapter C. It sets no limit on the amount, but it is strict about the refund: 30 days after the tenant leaves, an itemised list for deductions, and a penalty for bad faith that starts at three times the amount withheld. This guide is general information, not legal advice; check the current statute text before relying on it in a dispute.

Texas security deposit rules (Property Code ch. 92, subch. C)
RuleWhat it requires
CapNone
Refund deadlineOn or before the 30th day after the tenant surrenders the premises (§ 92.103)
Forwarding addressNo duty to refund or itemise until the tenant gives a written forwarding address (§ 92.107)
Itemised listWritten description of damages and charges, except for unpaid rent with no dispute (§ 92.104)
Bad faith$100 + three times the amount wrongly withheld + attorney’s fees (§ 92.109); late refund presumed bad faith

No cap, but the lease matters

Texas does not cap security deposits. The lease can require the tenant to give advance written notice of surrender as a condition of the refund, but only if the requirement is underlined or in conspicuous bold print in the lease. A landlord cannot keep the deposit simply because the tenant did not give notice unless the lease contains that clause.

The 30-day refund

The landlord must refund the deposit, or the balance after lawful deductions, on or before the 30th day after the tenant surrenders the premises. Surrender usually means the tenant has moved out and returned the keys, or the lease has ended and everyone has left.

The forwarding address

The landlord is not obliged to refund or send the list of deductions until the tenant gives a written statement of a forwarding address. A tenant who does not give one does not lose the deposit; the clock waits for the address. Ask for the forwarding address in writing at move-out and note the date you receive it.

What can be deducted, and the itemised list

Deductions can cover unpaid rent and charges under the lease, and damage beyond normal wear and tear. Normal wear and tear is deterioration from intended use, and it cannot be deducted. Unless the only deduction is undisputed unpaid rent, the landlord must give the tenant a written description and itemised list of all deductions. Attach invoices or photos where you have them.

Bad faith and the presumption

A landlord who in bad faith keeps a deposit owes the tenant $100, three times the portion wrongly withheld and the tenant’s reasonable attorney’s fees. A landlord who in bad faith fails to provide the itemised list forfeits the right to withhold any of the deposit and to sue the tenant for damage to the premises. If the landlord does not refund or itemise within 30 days, the landlord is presumed to have acted in bad faith, and the landlord carries the burden of proving that any deduction was reasonable.

A checklist

Document the unit’s condition at move-in with dated photos. At move-out, inspect, ask for the forwarding address in writing and record the date of surrender. Within 30 days, send the refund and the itemised list by a method that leaves a record. Keep invoices for every deduction. The move-in and move-out checklist helps with both inspections. For other Texas rules, see Texas rent increase laws and Texas rent receipt law; for other states, security deposit return deadlines by state.

This article is general information, not legal advice. Rental rules change and vary by jurisdiction; check the current law or consult a local lawyer before acting on it.

Common questions

How long does a Texas landlord have to return a security deposit?+

On or before the 30th day after the tenant surrenders the premises, once the tenant has given a written forwarding address.

Is there a limit on security deposits in Texas?+

No. Texas law does not cap the amount.

What if the tenant does not give a forwarding address?+

The landlord does not have to refund or itemise until the tenant does, but the tenant does not lose the right to the refund.

What is the penalty for wrongly keeping a deposit in Texas?+

For bad faith, $100 plus three times the amount wrongly withheld and the tenant’s attorney’s fees. Missing the 30-day deadline creates a presumption of bad faith.

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