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Texas Residential Lease Agreement

Introduction

A Texas lease agreement is a contract that grants a tenant the right to occupy a residential or commercial property in exchange for the payment of rent. Every type of lease agreement includes the terms and conditions of leasing property, such as the monthly cost, additional fees, rules and guidelines, and state-required disclosures.


Required Disclosures (7)

Texas law mandates seven key disclosures in rental agreements:

100-Year Flood Plain Notice

The landlord must provide notice to the tenant stating whether or not the property is located in a 100-year flood plain. [1]

Lead-Based Paint Disclosure

If a rental property was constructed before 1978, the landlord must complete this disclosure and have the tenant sign it. This is a federal requirement that applies to all states. [2]

Ownership and Management Information

The landlord must provide the name and address of the owner and, if applicable, the management company of the property. [3]

Right to Interrupt Utilities

If landlords want to reserve the right to shut off electricity for nonpayment by a tenant, they must disclose this right in the lease agreement and provide a notice before interruption occurs. [4]

Special Conditions to Cancel Agreement

Lease agreements must disclose a tenant's right to terminate the lease under special circumstances using the following statement or similar language: "Tenants may have special statutory rights to terminate the lease early in certain situations involving family violence or a military deployment or transfer." [5]

Texas Parking Rules Addendum

For landlords of a multi-unit complex, tenants must be given a written disclosure before a lease is signed that familiarizes them with the parking and towing policies. [6]

Tenant's Remedies

A lease must inform a tenant of the available remedies under law pertaining to repairs of the premises. [7]


Security Deposits

Maximum AmountThere are no Texas statutes that impose a maximum security deposit limit. Landlords may charge any amount they deem appropriate.

Collecting InterestState statutes do not mention the collection of interest on security deposits. Therefore, landlords are not required to pay interest on security deposits held.

Note: Return TimelineSecurity deposits must be returned 30 days after the tenant gives up possession of the property to the landlord. [8]Important Note: A landlord does not have to return a security deposit until the tenant provides a forwarding address. Failing to provide an address, however, does not obstruct the tenant's right to their deposit. [9]

Note: Itemized List RequiredYes. If the landlord uses some or all of the security deposit to fix damages other than normal wear and tear, they must provide the tenant with a list of all deductions. [10]Exception: If the tenant still owes rent, the landlord is not obligated to send an itemized list.

Separate Bank AccountNo. State law does not specify whether security deposits must be kept in a separate bank account, only that landlords must maintain accurate records. [11]


Landlord's Right to Enter

General AccessTexas property code doesn't specifically mention the need to notify tenants before a landlord enters the premises. Therefore, entry notice requirements should be specified in the lease agreement.

Immediate AccessNot mentioned in state statutes. However, The Tenants Rights Handbook (page 6) states that it is acceptable for a landlord to enter a tenant's rental unit only in emergency situations and for routine inspections/repairs. In the latter case, notice is still recommended.


Rent Payment Terms

Grace PeriodThere is a two-day grace period before a landlord can collect a late fee from a tenant. Furthermore, the fee must be reasonable and written in the lease agreement. [12]

Note: Maximum Late FeeA late fee is considered reasonable if it is:• 12% of the rent amount when the rental property has four units or less• 10% of the rent amount when the building has more than four units[13]Exception: Landlords may charge more than the mentioned percentages but only for expenses or costs associated with collecting the late rent payment. [14]

Bad Check (NSF) FeeFees charged to tenants for bounced checks are not covered by state law. These fees should be specified in the lease agreement.

Withholding RentA tenant cannot legally withhold rent payments. If they do, the landlord can recover damages equal to one month's rent plus $500 after proper notice has been delivered. [15]


Breaking a Lease

Non-Payment of RentIf a tenant fails to pay rent, the landlord must give them three days' notice to pay or vacate the premises before starting an eviction suit. [16]

Non-Compliance with Lease TermsIf a tenant breaches their lease agreement, the landlord must deliver a 3-day notice to comply or quit before they can file for eviction.

Landlord Repair ObligationsBesides normal wear and tear caused by the tenant, the landlord should be notified by the tenant of any necessary repairs that affect their health or safety. [17]

LockoutsLandlords cannot lock a tenant out of their rental property without proper judicial process or for legitimate reasons listed under state law. [18]

Leaving Before the End DateA landlord's remedies for a tenant abandoning rental property before the lease has terminated are not mentioned in state statutes. These provisions should be clearly outlined in the lease agreement.


Lease Termination

Month-to-Month TenancyIn order to end a month-to-month tenancy, either party must deliver a 1-month notice to quit to the other. [19]

Unclaimed PropertyIf a tenant leaves their property in the rental unit, the landlord may remove it. No storage or timeframe for recovery is mentioned in state statutes. [20]



Disclaimer

This document provides general information about Texas residential lease agreements based on publicly available statutes. It is not legal advice and should not be used as a substitute for consultation with a qualified attorney. Laws may change, and their application can vary based on specific circumstances. For legal advice regarding your specific situation, please consult with a licensed attorney in Texas.

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