State law guide · Checked November 14, 2026

Texas landlord rules: late fees, deposits and rent increases

Texas sets clear rules for late fees and deposit returns, and leaves deposit size and rent increases to the lease. Here is what the Texas Property Code says, with the section for each rule.

Late fees in Texas

Limit

No fixed cap, but the fee must be reasonable. A fee counts as reasonable at up to 12% of the rent for the period in a building with four or fewer units, or up to 10% in a building with more than four. A higher fee is allowed if it isn't more than the landlord's uncertain damages from the late payment. An initial fee plus daily fees count together as one late fee. Tex. Prop. Code § 92.019(a-1), (b)

Grace period

Two full days. A late fee can be charged once any part of the rent has been unpaid two full days after the date it was due. Tex. Prop. Code § 92.019(a)(3)

Other conditions

Notice of the fee must be in a written lease. A landlord who breaks these rules owes the tenant $100, three times the late fee collected, and attorney's fees. Tex. Prop. Code § 92.019(a), (c)

Security deposits in Texas

Maximum deposit

The statute sets no limit. Tex. Prop. Code ch. 92, subch. C

Return deadline

30 days after the tenant surrenders the premises. Tex. Prop. Code § 92.103(a)

Itemized deductions

Required, within the same 30 days. If you keep any of the deposit, send the balance with a written description and itemized list of all deductions. The list isn't required when the tenant owes rent at move-out and the amount isn't in dispute. Tex. Prop. Code §§ 92.104(c), 92.109(d)

Interest

The statute doesn't require it. Tex. Prop. Code ch. 92, subch. C

How it's held

No special account or bond in the statute. The landlord has to keep accurate records of all security deposits. Tex. Prop. Code § 92.106

Penalty

$100 plus three times the amount wrongly kept, plus attorney's fees, for keeping a deposit in bad faith. Missing the 30-day deadline is presumed to be bad faith. A landlord who in bad faith doesn't send the itemized list loses the right to keep any of the deposit. Tex. Prop. Code § 92.109

Rent increases in Texas

Notice to raise rent

No statute sets a notice period for a rent increase. The closest rule covers ending a month-to-month tenancy: one month's notice, unless a signed lease sets a different period. Check your lease for its own notice term. Tex. Prop. Code § 91.001

Statewide cap

None in the statute. Tex. Prop. Code chs. 91, 92

City rent control

Allowed in one narrow case. A city may adopt rent control if it finds a housing emergency caused by a disaster and the governor approves the ordinance. Tex. Loc. Gov't Code § 214.902

This page covers Texas state law for ordinary residential rentals. Cities and counties can add their own rules, and subsidized housing and mobile home lots follow different ones.

Questions landlords ask

Free templates you can use in Texas

These are plain templates that aren’t tied to one state. Fill in the numbers your statute and lease call for.

• Rent increase letter kit: increase notice, renewal offer, pricing worksheet and delivery log.
• Late rent notice kit: friendly reminder, past-due notice, payment plan and delivery log.
• Security deposit return kit: itemized return letter, wear-and-tear guide and move-out checklist.
• Move-in kit: inspection checklist and deposit receipt, signed by the tenant.
• Rent ledger: running tenant balances and printable statements.

This guide is general information, not legal advice. It summarizes state statutes as read on November 14, 2026; laws change and courts interpret them. Check the current statute (Texas Property Code, chapter 92) or talk to a local attorney before you act.