Texas Security Deposit Rules: The 30-Day Return Deadline

Updated 2026-07-01 · Reflects SB 38 (eff. Jan 1, 2026)

A Texas landlord must refund the tenant's security deposit within 30 days after the tenant surrenders the premises and provides a forwarding address (Tex. Prop. Code §92.103). If you withhold any of it, you must give a written, itemized list of deductions — and bad-faith retention makes you liable for $100 plus three times the amount wrongfully withheld, plus the tenant's attorney's fees (§92.109).

What you can deduct

Damages and charges the tenant is legally liable for under the lease — physical damage beyond normal wear and tear, unpaid rent, unpaid late fees properly charged. You cannot deduct for normal wear and tear (§92.104). If the tenant owes rent and there's no dispute about it, itemization of that rent isn't required, but itemizing everything is the safe practice.

The forwarding-address wrinkle

The 30-day clock runs from surrender and the tenant giving a forwarding address in writing. You don't owe the refund until you have the address — but you also can't treat a missing address as a waiver: the tenant doesn't forfeit the deposit by forgetting it (§92.107).

Why bad faith is expensive

A landlord who keeps a deposit in bad faith owes $100 + 3× the wrongfully withheld amount + attorney's fees, and retaining without an itemized list creates a legal presumption of bad faith. On a $2,000 deposit, that's a $6,100+ mistake. Send the itemization on time, every time.

Generate a Texas lease

SB 38-current lease with every required disclosure built in.

Frequently asked questions

Is there a cap on security deposits in Texas?

No statutory cap — Texas leaves the amount to the lease. One to two months' rent is customary.

Can the lease require 60 days instead of 30?

No. The 30-day deadline in §92.103 can't be waived or extended by lease terms.

Can the tenant use the deposit as last month's rent?

Not unilaterally — §92.108 makes a tenant who withholds last month's rent on the deposit liable for 3x the rent withheld.

Primary sources: Tex. Prop. Code ch. 92, subch. C

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Legal information, not legal advice. LandLawKit is not a law firm. For advice about your specific situation, consult a Texas attorney.