Texas places no statutory limit on how much a landlord can charge for a security deposit. However, the landlord must refund the deposit within 30 days after the tenant surrenders the premises. A landlord who keeps a deposit in bad faith faces $100 plus three times the wrongfully withheld amount, plus the tenant's attorney's fees.
Texas Property Code Subchapter C imposes no cap on the deposit amount, but it strictly governs the refund. A landlord "shall refund a security deposit to the tenant on or before the 30th day after the date the tenant surrenders the premises" (Tex. Prop. Code § 92.103). The tenant must first give a written forwarding address, though failing to do so does not forfeit the refund right (§ 92.107). A landlord may deduct damages and unpaid amounts for which the tenant is legally liable but may not retain anything for normal wear and tear, and must provide a written itemized list of deductions (§ 92.104) — unless the tenant owes rent at surrender and there is no controversy over the rent owed.
Under Tex. Prop. Code § 92.109, a landlord who in bad faith retains a deposit is liable for $100 plus three times the portion wrongfully withheld plus the tenant's reasonable attorney's fees. Bad faith is presumed if the landlord fails to refund or provide a written itemization within 30 days.
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