Texas Security Deposit Return Deadline: The 30-Day Rule

Security deposit rules are one of the areas covered in Texas tenant rights on deposits, repairs, and leases. This article focuses on the timing question most tenants search for: how long a landlord has to return the deposit after move-out, what may be taken out of it, and what happens when a landlord holds it past the deadline. The rules come from Subchapter C of Chapter 92 of the Texas Property Code and apply to all residential leases.

The 30-day return deadline

The deadline is the central rule. Under Tex. Prop. Code § 92.103, a landlord must refund a security deposit on or before the 30th day after the date the tenant surrenders the premises. The clock runs from surrender, not from the last day of the lease term and not from the date the tenant hands over keys if possession was given up earlier.

Surrender means the tenant has given up possession and no longer has the right to occupy the unit. When a tenant moves out before the lease ends, the 30-day count still starts at surrender. Section 92.103 allows one narrow condition on this: a lease can require the tenant to give advance notice of surrender as a condition of the refund, but that requirement is enforceable only if it is underlined or printed in conspicuous bold print in the lease.

One condition sits ahead of the deadline: the landlord’s duty to refund is not triggered until the tenant provides a written forwarding address, covered in a section below.

Is there a maximum security deposit in Texas?

Texas does not set a statutory maximum on the amount of a residential security deposit. Chapter 92 of the Property Code defines what a security deposit is and governs how it must be handled and returned, but it does not cap the dollar amount a landlord can require. A deposit equal to one month’s rent is common, and some landlords charge more, particularly for tenants with pets or limited rental history. The amount is a matter of contract between the landlord and tenant.

Under Tex. Prop. Code § 92.102, a security deposit is any advance of money, other than a rental application deposit or advance rent, that is intended primarily to secure performance under the lease. That definition matters because it determines which money is subject to the return rules. A charge labeled as a non-refundable fee, if it functions to secure performance, can still meet the statutory definition of a deposit regardless of the label used in the lease.

Because no cap exists, the enforceable protections for tenants are procedural rather than about amount: the deposit must come back within the deadline, deductions must be itemized, and a landlord who withholds without justification faces defined penalties.

What a landlord can and cannot deduct

A landlord does not have to return the full deposit in every case. Under Tex. Prop. Code § 92.104, a landlord may deduct from the deposit damages and charges for which the tenant is legally liable under the lease or as a result of breaching the lease. Unpaid rent, unpaid utilities the tenant agreed to cover, and the cost of repairing damage the tenant caused are common examples.

Section 92.104 draws one clear line: a landlord may not retain any portion of a deposit to cover normal wear and tear. Normal wear and tear is the deterioration that results from the ordinary use of the property, not from negligence, carelessness, accident, or abuse. Faded paint and worn carpet from ordinary use fall on the tenant’s side of the line; a large stain, a hole in the wall, or a broken fixture generally does not.

When a landlord keeps all or part of a deposit, Section 92.104 requires the landlord to give the tenant the remaining balance together with a written description and itemized list of all deductions. The statute contains one exception to the itemization duty: no itemized list is required if the tenant owes rent when possession is surrendered and there is no dispute about the amount of rent owed.

The forwarding address requirement

A tenant’s right to the refund is not lost by moving out, but the landlord’s clock has a starting condition. Under Tex. Prop. Code § 92.107, a landlord is not obligated to return the deposit or provide the written description of deductions until the tenant gives the landlord a written statement of a forwarding address for the purpose of refunding the deposit.

Section 92.107 also protects tenants from losing the deposit over this step. A tenant who fails to give a forwarding address does not forfeit the right to a refund or to a description of damages and charges; the landlord’s obligation is simply suspended until the address is provided. A tenant who provides the address in writing and keeps a copy establishes the date the landlord’s duty began, which is the date that starts the 30-day count running toward the bad-faith presumption.

Penalties when a landlord keeps a deposit in bad faith

The Property Code attaches specific consequences to a landlord who wrongfully holds a deposit. Under Tex. Prop. Code § 92.109, a landlord who in bad faith retains a security deposit in violation of the subchapter is liable for an amount equal to the sum of $100, three times the portion of the deposit wrongfully withheld, and the tenant’s reasonable attorney’s fees in a suit to recover the deposit.

A separate consequence applies to itemization. Section 92.109(b) provides that a landlord who in bad faith fails to provide the written description and itemized list of deductions forfeits the right to withhold any portion of the deposit or to sue the tenant for damage to the premises, and is liable for the tenant’s reasonable attorney’s fees.

Bad faith is not the same as an honest dispute over a deduction. A landlord who returns most of a deposit with a good-faith itemized accounting, but is wrong about one item, is in a different position from a landlord who returns nothing and provides no accounting. The 30-day presumption in Section 92.109(d) makes the second situation the higher-risk one for the landlord.

How a tenant recovers a withheld deposit

When a deposit is not returned and the deadline has passed, the dispute is typically handled through a written demand followed, if needed, by a small claims suit in a Texas justice court. A tenant’s written demand identifies the deposit amount, the surrender date, the forwarding address already provided, and the fact that the 30-day deadline under Section 92.103 has passed.

If the demand does not resolve the matter, the claim can be filed in the justice court for the precinct where the property is located or where the landlord resides. Justice courts handle civil claims up to a statutory limit, and deposit disputes ordinarily fall well within it; the Texas Judicial Branch publishes self-help resources for people representing themselves in court. The tenant’s evidence usually includes the lease, proof of the deposit paid, the written forwarding address, move-out photos, and any itemization the landlord did or did not provide.

The penalties in Section 92.109 are recovered in that same suit. Because the statute shifts the burden of justifying deductions to the landlord and adds attorney’s fees for bad-faith retention, the itemization and the timing of the landlord’s response are often the facts that decide the case. Related tenant-side procedures, including the condition-of-premises rules under the Texas warranty of habitability and the steps in a Texas eviction process timeline, can overlap with a deposit dispute when a move-out follows a repair conflict or a contested eviction. Tenants responding to an improper removal may also look at the rules on wrongful eviction in Texas.