Austin Rules for Withholding a Tenant's Security Deposit
Security deposit disputes are among the most common landlord-tenant conflicts, and Texas Property Code Chapter 92 sets clear rules that Austin landlords need to follow to withhold any portion legally.
What Can Legally Be Deducted
A landlord can deduct for unpaid rent and damage beyond normal wear and tear — things like large holes in walls, stained carpet from pet damage, or broken fixtures. Normal wear and tear, such as minor scuffs or faded paint from ordinary living, generally cannot be deducted from the deposit.
The 30-Day Return Requirement
Texas law requires a landlord to return the deposit, or an itemized list of deductions along with any remaining balance, within 30 days after the tenant moves out and provides a forwarding address. Missing this deadline can expose a landlord to statutory penalties beyond just the deposit amount.
Providing an Itemized List
If any amount is withheld, the landlord must provide a written, itemized description of the deductions. A vague deduction like 'damages' without specifics doesn't meet this requirement and invites a dispute.
Documentation Protects Both Sides
Move-in and move-out photos or a written condition report create a clear record of the property's condition at each point, which is the single best way for a landlord to justify a deduction if the tenant disputes it.
Consequences of Improper Withholding
If a landlord withholds a deposit in bad faith or fails to provide the required itemization, Texas law allows the tenant to recover damages, including the landlord's own attorney's fees in some cases — making careful compliance well worth the effort.
Frequently Asked Questions
Texas Property Code Chapter 92 requires the deposit, or an itemized list of deductions with any remaining balance, to be returned within 30 days after the tenant moves out and provides a forwarding address.
No. Normal wear and tear, such as minor scuffs or faded paint from ordinary living, cannot legally be deducted. Deductions are limited to unpaid rent and damage beyond normal wear and tear.
