Texas Statewide Rule
Texas Bans HOA Tenant Screening, Not Rental Caps
Key Facts
- Governing statute
- Tex. Prop. Code § 209.016
- Tenant board-approval requirement
- Prohibited, § 209.016(b)(1)
- Credit or consumer report demand
- Prohibited, § 209.016(b)(2)(A)
- Outright leasing bans/caps
- Still allowed, § 209.016(d)
- Info HOA may collect
- Contact info and lease dates only, § 209.016(e)
- Declaration amendment threshold
- 67% of owner votes, § 209.0041(h)
- Owner enforcement venue
- Justice court, § 209.017
Summary
Texas Property Code Section 209.016 sets no cap on how much of a subdivision an association can rent out, no minimum lease term, and no grandfather clause: a declaration can still ban leasing outright. What the statute forbids is tenant screening. An association cannot require a rental applicant to be approved by the board, and cannot demand a credit report, consumer report, or copy of the lease itself.
(b) A property owners' association may not adopt or enforce a provision in a dedicatory instrument that: (1) requires a lease or rental applicant or a tenant to be submitted to and approved for tenancy by the property owners' association; or (2) requires the following information to be submitted to a property owners' association regarding a lease or rental applicant or current tenant: (A) a consumer or credit report; or (B) a lease or rental application submitted by the applicant, tenant, or that person's agent to the property owner or property owner's agent when applying for tenancy. ... (d) Nothing in this section shall be construed to prohibit the adoption or enforcement of a provision in a dedicatory instrument establishing a restriction relating to occupancy or leasing. (e) A property owners' association may request the following information to be submitted to the association regarding a lease or rental applicant: (1) contact information, including the name, mailing address, phone number, and e-mail address of each person who will reside at a property in the subdivision under a lease; and (2) the commencement date and term of the lease.
Full Breakdown
Chapter 209 of the Property Code, the Texas Residential Property Owners Protection Act, draws a hard line between what an HOA may condition leasing on and what it can screen for. 016(b) bars a mandatory-membership association from adopting or enforcing any dedicatory-instrument provision that requires a lease applicant or current tenant to be submitted to and approved for tenancy by the board, or that requires a consumer or credit report, or the lease or rental application itself, to be handed over. B. 1588 (87th Legislature), which also added the current text as Section 20 of that act.
016 stops an association from adopting or enforcing a restriction on occupancy or leasing itself, including an outright cap on the number of rented units or a ban on new rentals. Texas has no statewide right-to-rent statute and no minimum lease term. Subsection (e) lists the narrow band of information an association may still request: each resident's name, mailing address, phone number, and e-mail address, plus the lease's start date and term, nothing more. 0041(h-2)). The rule traces to House Bill 2489 of the 84th Legislature, effective June 19, 2015, before the 2021 rewrite narrowed it to its current screening-only scope.
Violations & Penalties
An association still enforcing a tenant-approval or credit-report demand is violating Section 209.016(b), and an owner need not sue in district court to fight it: Section 209.017, added by the same 2021 act, gives justice courts jurisdiction over an owner's suit against the association for a chapter violation. If the board tries to fine or suspend common-area access over a refusal to hand over a barred document, Section 209.006 still applies: certified-mail notice, a cure period, and a right to a hearing within 30 days before the fine sticks.
Frequently Asked Questions
Can my Texas HOA still ban renting my house entirely?
Can the HOA require my tenant to be approved before moving in?
What information can the association legally ask for about my tenant?
Can the HOA fine me for not submitting a credit report on my tenant?
How do I challenge an HOA that demands tenant screening anyway?
Sources
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