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Texas · Security Deposits · Move-Out Charges

Texas Security Deposit When You Still Owe Fees or Utilities: Does the 30-Day Rule Still Apply?

Texas landlords may deduct charges a tenant is legally liable for, but owing fees or utilities does not automatically erase the 30-day security-deposit accounting rules. See how rent, non-rent charges, forwarding addresses and itemization fit together in 2026.

Last reviewed September 21, 20268 min read
How this guide was researchedMax Rental Tools prioritizes statutes, courts, attorney general offices, housing departments, rent boards and other primary government sources. Public community questions may help identify what renters and landlords are asking, but they are discovery signals only and do not establish the legal answer.Read the editorial & verification policy →
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The short answer

Texas Property Code section 92.103 generally requires a landlord to refund a residential security deposit on or before the 30th day after the tenant surrenders the premises, subject to the forwarding-address rule in section 92.107. A landlord may deduct damages and charges for which the tenant is legally liable under the lease or because of a lease breach.

That means an unpaid utility charge, service charge or other fee can matter if the tenant is actually responsible for it, but an outstanding non-rent balance does not automatically make the security-deposit accounting requirement disappear. Section 92.104 generally requires a written description and itemized list when the landlord retains all or part of the deposit, and its stated exception is tied to undisputed rent owed at surrender.

Texas separates the right to deduct from the duty to account

Section 92.104(a) allows a landlord to deduct damages and charges for which the tenant is legally liable under the lease or as a result of breaching the lease. The first question is therefore whether the particular utility, fee or other balance is a valid tenant obligation under the rental agreement and applicable law.

The second question is different: if the landlord retains all or part of the security deposit, section 92.104(c) generally requires the remaining balance, if any, together with a written description and itemized list of all deductions. A valid charge does not by itself eliminate the accounting step.

The itemization exception is written around rent, not every kind of balance

Section 92.104(c) says the landlord is not required to provide the written description and itemized list only when two conditions are satisfied: the tenant owes rent when possession is surrendered, and there is no controversy concerning the amount of rent owed.

If the only outstanding amounts are described as utilities, service fees, administrative charges or another non-rent balance, do not automatically assume that exception applies. Review the lease and the legal character of the charge. A lease label such as 'additional rent' can create a classification question, but the safest approach is to preserve the actual ledger and obtain a written accounting rather than treating every fee as rent by default.

A forwarding address still matters

Section 92.107 says a landlord is not obligated to return the deposit or provide the written description of damages and charges until the tenant gives the landlord a written statement of the tenant's forwarding address for the purpose of refunding the security deposit. The tenant does not forfeit the deposit merely by failing to provide the address; the duty is delayed until the written forwarding address is supplied.

Keep proof of exactly when and how the forwarding address was delivered. If it was sent more than once, save each email, portal submission, letter or acknowledgment because the date the statutory duty was triggered can become important in a deadline dispute.

The ordinary deadline is 30 days after surrender

Section 92.103 generally sets the refund deadline at on or before the 30th day after surrender, subject to section 92.107. The Texas Attorney General likewise tells tenants that, after a written forwarding address is provided, the landlord must return the deposit less lawful deductions within 30 days and provide an itemized list when part or all of the deposit is withheld.

Do not measure the deadline only from the date a tenant physically carried out the last box if surrender is disputed. Preserve the lease-end date, key-return record, move-out confirmation, possession handoff and forwarding-address notice so the timeline can be reconstructed accurately.

Owing money does not mean the landlord can keep an unexplained lump sum

A tenant may still owe a valid final utility bill, cleaning charge, repair cost or other lease-authorized amount after move-out. Section 92.104 permits lawful deductions, but the landlord should be able to identify what was deducted and why unless the narrow undisputed-rent exception applies.

Compare the final ledger with the lease. Separate base rent from utilities, damages, fees and other charges. If a deduction is disputed, ask for the contractual basis, the amount, the date incurred and supporting records rather than assuming the entire deposit can simply be absorbed into an unexplained balance.

Texas has bad-faith remedies, but they are not automatic

Section 92.109 addresses bad-faith withholding and bad-faith failure to provide a required written description and itemized list. It also places the burden on the landlord, in a tenant action under the security-deposit subchapter, to prove that retention of any portion of the deposit was reasonable. The statute creates a presumption of bad faith when the landlord fails to return the deposit or provide the required written description and itemization by the applicable 30-day deadline.

Those remedies should not be described as an automatic recovery every time a landlord is late. The forwarding-address requirement, surrender date, whether rent was actually owed and undisputed, the legal validity of the charges, the accounting record and the evidence bearing on bad faith all matter. A court may need to resolve contested facts.

What to preserve before disputing the accounting

Keep the lease and addenda, move-out notice, key-return or surrender record, written forwarding address, security-deposit receipt, final rent ledger, utility statements, fee notices, move-out photos, emails or portal messages, any itemized statement, refund record and proof of any amounts paid after move-out.

If the landlord says a particular fee or utility balance justifies keeping the deposit, ask for a written statement showing the charge separately from rent. That distinction can matter because section 92.104's no-itemization exception is expressly written around rent owed at surrender.

Use Max Rental Tools to organize the move-out record

Max Rental Tools includes a Forwarding Address Request, Security Deposit Itemization, Security Deposit Refund Statement, Tenant Balance Statement and Rent Ledger. Those documents can help both sides separate rent from utilities, fees and other deductions, while Texas Property Code Chapter 92 and current Texas Attorney General guidance remain the controlling legal sources.

For a contested deposit or significant claimed balance, consider qualified Texas landlord-tenant legal help or the appropriate court process based on the actual lease, amount and evidence rather than relying on a generic online answer.

Common questions

Can a Texas landlord deduct unpaid utilities from a security deposit?

Potentially, if the tenant is legally liable for the utility charge under the lease or because of a lease breach. Section 92.104 allows deductions for damages and charges the tenant is legally liable for, but the landlord generally still must provide the required accounting.

Does owing fees or utilities cancel Texas's 30-day security-deposit deadline?

Not automatically. Section 92.103 generally uses a 30-day deadline after surrender, subject to the written forwarding-address requirement in section 92.107.

When can a Texas landlord skip the itemized deduction list?

Section 92.104(c) states an exception when the tenant owes rent at surrender and there is no controversy about the amount of rent owed. The statute does not state the exception as applying to every unpaid fee or utility balance.

What if my lease calls a fee or utility charge 'additional rent'?

That wording can create a fact-specific classification issue. Preserve the lease and ledger and avoid assuming the label alone conclusively determines whether the section 92.104(c) rent exception applies.

Do I need to give a forwarding address in Texas?

Yes, to trigger the landlord's obligation to return the deposit or provide the written description and itemization. Section 92.107 says the tenant does not forfeit the deposit by failing to provide one, but the landlord's duty is delayed until a written forwarding address for the refund is supplied.

Is a Texas tenant automatically entitled to triple damages if the deposit is late?

No automatic result should be assumed. Section 92.109 provides remedies for bad-faith violations and a bad-faith presumption in specified circumstances, but disputed claims still depend on the forwarding-address record, timing, deductions, lease terms and evidence.

Official sources

Texas Legislature — Property Code Chapter 92, Residential TenanciesTexas Attorney General — Renter's Rights

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