Texas Sets No Deposit Cap but Enforces a 30-Day Refund Rule

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.