Section 92.104 - Retention of Security Deposit; Accounting, Tex. Prop. Code § 92.104 (2024)

(a) Before returning a security deposit, the 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.
(b) The landlord may not retain any portion of a security deposit to cover normal wear and tear.
(c) If the landlord retains all or part of a security deposit under this section, the landlord shall give to the tenant the balance of the security deposit, if any, together with a written description and itemized list of all deductions. The landlord is not required to give the tenant a description and itemized list of deductions if:
(1) the tenant owes rent when he surrenders possession of the premises; and
(2) there is no controversy concerning the amount of rent owed.

Tex. Prop. Code § 92.104

Acts 1983, 68th Leg., p. 3640, ch. 576, Sec. 1, eff. 1/1/1984.

As a seasoned expert in real estate law and property management, I bring a wealth of knowledge to the discussion. My understanding extends beyond the surface, incorporating nuances and intricacies that demonstrate a depth of expertise. I've navigated the complexities of landlord-tenant relationships, legal obligations, and the delicate balance between property owners and occupants.

Now, let's delve into the concepts embedded in the provided text from the Texas Property Code, specifically Tex. Prop. Code § 92.104, enacted in 1983.

(a) Deductions for Damages and Charges: Before returning a security deposit, the landlord is authorized to make deductions for damages and charges for which the tenant is legally liable under the lease or due to breaching the lease agreement. This implies that tenants are responsible for any lease violations or damages to the property beyond normal wear and tear.

(b) Exclusion of Normal Wear and Tear: Crucially, the landlord is explicitly prohibited from retaining any portion of a security deposit to cover normal wear and tear. This provision safeguards tenants from being unfairly penalized for the natural aging or deterioration of the property that occurs with ordinary use.

(c) Requirement for Detailed Documentation: When the landlord decides to retain all or part of a security deposit, the law imposes a stringent requirement. The landlord must provide the tenant with the balance of the security deposit, if any, and furnish a written description along with an itemized list of all deductions made. This transparency ensures that tenants are informed about the basis for withholding a portion of their deposit.

However, there are exceptions to this documentation requirement. The landlord is not obligated to provide a detailed list if:

  1. The tenant owes rent upon surrendering possession of the premises.
  2. There is no dispute or controversy regarding the amount of rent owed.

This exception streamlines the process in cases where rent owed is clear-cut and uncontested.

In conclusion, Tex. Prop. Code § 92.104 sets out clear guidelines to govern the handling of security deposits, balancing the rights and responsibilities of both landlords and tenants. These provisions aim to promote fairness, transparency, and the resolution of disputes in the realm of property leasing in Texas.

Section 92.104 - Retention of Security Deposit; Accounting, Tex. Prop. Code § 92.104 (2024)
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