Security deposits are one of the most argued-over topics in landlord-tenant law. Landlords think they followed the rules. Tenants think they got ripped off. And sometimes both are right about different things. If you own rental property in Texas, you need to know exactly what the law requires of you, because getting this wrong has real consequences. Here is a plain-language breakdown of how Texas security deposits work and where landlords most commonly run into trouble.

There is no legal cap on what you can charge

Texas does not set a maximum dollar amount for security deposits. You can charge one month's rent, two months, or whatever the market will bear. Most landlords in Lubbock and the surrounding West Texas markets land somewhere in the one-to-two month range, depending on the property type and the applicant profile.

What the law does set is strict rules on how you handle that money once you have it, and most of the problems happen on the back end, not the front end.

You have 30 days to return it or account for it

This is the rule that trips people up most often. Under the Texas Property Code, you have 30 days after a tenant vacates to either return the full deposit or mail them an itemized written statement of the deductions along with any remaining balance. That 30-day clock starts when the tenant moves out, not when you finish the turn.

If the tenant gives you a forwarding address in writing, that address is where your statement and check need to go. If they did not give you a forwarding address, the law gives you a bit more flexibility, but you still need to document your efforts. Talk to a Texas attorney about how that works in your specific situation, because the details matter.

What you can legally deduct

Texas law allows you to deduct from the deposit for unpaid rent, damages to the property beyond normal wear and tear, and other charges spelled out in the lease. That last category is where your lease language earns its keep. If you have a pet fee, a cleaning fee, or a lease-break penalty that is clearly written into the agreement, you have a basis to deduct it. If it is not in the lease, deducting it is a problem.

The big categories landlords legitimately deduct for:

• Unpaid rent or month-to-month charges owed at move-out
• Holes in walls beyond normal picture-hanging damage
• Broken fixtures or appliances caused by misuse
• Carpet damage, stains, or burns (beyond normal aging and foot traffic)
• Excessive filth that requires professional cleaning beyond standard turnover
• Missing or broken blinds, curtains, or fixtures
• Any charges the lease specifically authorizes

What normal wear and tear actually means

This is the gray zone where most disputes live. Normal wear and tear is the gradual deterioration that happens to a property through ordinary, reasonable use. You cannot charge a tenant for it, even if it costs you money to fix.

A practical way to think about it: if it would happen to anyone who lived normally in that unit for the same amount of time, it is probably wear and tear. Scuffs on baseboards from furniture, minor paint fading, small nail holes from hanging pictures, carpet wear in high-traffic paths, those are wear and tear. A cigarette burn in the carpet, a door kicked off its hinges, a fist hole in the drywall, those are damage.

The longer a tenant lives in a unit, the more wear and tear you are expected to absorb. A tenant who lived there for five years should not be charged for repainting the entire unit. A tenant who lived there for six months and left the walls looking like they hosted a demolition derby is a different story.

The itemized list is not optional

If you are keeping any portion of the deposit, you must provide an itemized written statement. Not a verbal explanation. Not a text message. A written, itemized list of every deduction with dollar amounts. This is what protects you if the tenant disputes anything.

If you fail to send this statement within the 30-day window, Texas law can hold you liable for the full deposit amount even if the deductions would have been legitimate. The penalty for bad-faith withholding is significant and can include more than just returning the deposit. A Texas attorney can tell you exactly what that exposure looks like, because I am not going to state the penalty figures here as legal advice.

What I will say is that the itemized list is cheap insurance. It takes an hour. Do it every time.

The move-out walkthrough is your best evidence

You cannot defend a deduction you cannot prove. The single best thing you can do to protect yourself is a thorough move-in inspection with photos and a signed condition report, followed by a thorough move-out inspection with photos the day the tenant leaves.

Compare the move-in and move-out photos side by side before you write your itemized statement. That comparison is your evidence. If a tenant disputes a deduction in small claims court, those timestamped photos are what wins the case. If you do not have them, you are going on memory against a tenant who also has a very different memory.

At Minnix we document every unit at move-in and move-out as standard practice. It is not extra work. It is the minimum you need to do this correctly.

When it gets complicated, get an attorney involved

Security deposit disputes are one of the most common reasons landlords end up in small claims court. Most of them are avoidable with clear documentation, a solid lease, and following the 30-day rule without exception. But if you have a disputed deduction, a tenant threatening legal action, or a situation involving month-to-month holdover charges or lease-break fees, talk to a Texas attorney before you send that statement. The cost of a 30-minute consultation is far less than losing a deposit dispute.

If you want a second set of eyes on how your management process handles deposits and move-out documentation, reach out for a rental analysis. It is one of the first things we look at when an owner comes to us with recurring disputes.