Finding quality tenants, who will abide by the terms outlined in the lease agreement, is just one responsibility of a landlord. They are also tasked with other important components of property management, such as inspections, rent increases, security deposits, and maintenance.
And though there are federal laws in place to help manage the landlord/tenant relationship, it’s still helpful for landlords to have knowledge of applicable laws in their state as they can serve as a guide and protection. With that said, if you're a Texas landlord, here are your state's landlord rights.
Texas Rent Laws
Rent collection is one of the most important aspects of a landlord’s business, so it makes sense that Texas has specific rights pertaining to it. Here’s what you should know about Texas rent laws.
Late Fees
Landlords in Texas have the right to charge tenants late fees if their rent isn’t paid by its due date. However, the collection and cost of late fees must be detailed in your current lease agreement. If it isn’t, you cannot demand that a tenant pay a late fee. If you have listed a provision on late fees in your current agreement, you can’t levy a fee until 2 full days after the rent’s due date has passed.
Texas law decrees that any late fees must be reasonable, meaning 10% of the rent if your property has 5 or more units and 12% of the rent if your property has less than 5 units. You are also free to charge an initial late fee and recurring daily late fees for every day the rent is late.
Cash Rental Payments
If your lease agreement does not have a provision for non-acceptance of cash payments, then you are legally obligated to accept cash payments from your tenants. Landlords are also required to give tenants a dated written receipt that documents that they’ve paid.
Required Notice of Rent Increase
The state of Texas doesn’t have a written law requiring notice of rent increase. However, the industry standard is to provide at least one month's notice. If your lease agreement has a separate provision with a different notice period listed, you can legally abide by it.
Additionally, you can’t increase the rent until the current lease period has ended, unless either your lease term is month-to-month or it is stated otherwise in the lease agreement.
Termination for Non-Payment of Rent
Landlords in Texas are required to give tenants a 3-day notice (at minimum) to move out due to non-payment of rent. However, if your lease term states otherwise, you may legally abide by it.
If you are forced to evict a tenant there are specific laws that must be followed making it even more important to understand your rights during the process.
Texas Eviction Laws
Evictinga tenant should be a last resort as the process can be lengthy and result in months of lost income in addition to associated court fees and any repairs that need to be made to the property. If you must move forward with an eviction, follow these steps mandated by Texas law.
Step 1: Notice to Vacate
A notice to vacate (or notice to quit) must be administered by a Texas landlord as the first step of the eviction process. The notice must be in writing and delivered directly to the tenant, usually via certified mail. You must give the tenant at least 3 days to vacate the property unless otherwise stated in your current lease agreement.
Though you are not required to list a reason for eviction, it serves as good documentation if you do, especially in cases when the cause is a breach of the lease agreement.
Step 2: Eviction Citation and Service by the Constable
Texas landlords are required to file an eviction suit with the Justice of the Peace in their county to move forward with an eviction if the tenant doesn’t move out within the given time listed on the notice to vacate.
A constable will deliver the eviction citation to the tenant which requires them to make an appearance in court. The law dictates that tenants cannot be evicted or removed from the property until the court case is settled.
Step 3: Going to Trial
This is the final step of the eviction process. A judge will make a final decision regarding the eviction after both the landlord and tenant present their cases in court. If the judge rules in favor of the eviction, the tenant has 5 days to appeal or move out.
If the tenant does neither, the landlord can return to the Justice of the Peace to pay for a right of possession, in which the constable will remove the tenant from the property.
Unfortunately, the appeals process can make the whole ordeal a lot longer, meaning that you could lose out on a lot of income. This is when rent guarantee insurance comes in handy.
Companies, like Steady, cover the rent you lose when a tenant defaults on rent. While having rent default insurance doesn’t make evicting a tenant easier, it can ensure that you don’t have to worry about losing months of income during the process.
Texas Security Deposit Laws
Regardless of how and when a tenant moves out, landlords must deal with their security deposit and determine whether it will be fully refunded.
Texas law doesn’t have a limit on how much a security deposit can be, but it must be returned within 30 days of the lease termination. That means that Texas landlords have 30 days to determine whether any significant damage has been done to their property. If severe damage has occurred, a landlord can legally withhold all or some of a tenant’s security deposit to cover the cost of repairs or deep-cleaning.
When retaining any of the security deposit funds, however, a landlord must provide tenants with an itemized written document that lists all of the damage and repair costs. These laws are written at the state level. However, your city, county, or village laws may differ.
Landlord Access to Rental Property in Texas
Luckily, lease agreements can be written to give landlords the right to access their rental properties when needed, giving you the ability to periodically check on the state of your unit.
While there are no Texas state laws that require landlords to give notice before accessing a rental property, it’s important to make note that a lack of privacy is one of the most common landlord complaints made by tenants. With that said, most lease agreements have a provision for landlord access for reasons that include:
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Removing Pets Restricted by the Lease
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Make Repairs (Emergency or Otherwise)
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Posting Notices
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Pest Infestation
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Any Other Time Indicated in the Lease Agreement
If your current lease agreement states that a specific amount of notice must be given, then you have to comply with it, except in cases of emergency such as a gas leak, flood, fire, or natural disaster. In these situations, a landlord may enter the rental property without notice.
Prepare for the Unexpected
Whether it’s an emergency situation or the ability to charge a late fee, the state of Texas has landlord rights that help to protect both your business and tenants. Unfortunately, laws can’t protect your income when a tenant defaults on their rent payment. That’s why it’s up to landlords to protect themselves by having a proactive backup plan.
A rent default insurance policy through Steady can make all the difference when it comes to protecting your interests as a landlord. With deductible-free coverage and customizable policies, you can choose the best protection for your income. Steady will step in to pay when your tenants can’t, so you don’t have to worry about losing your revenue.