Dallas Security Deposit Law 2026: Refund Deadlines, Deductions, and Penalties

If you rent in Dallas, your security deposit is probably the largest single sum of money you hand to a stranger all year. With the city’s median gross rent at $1,472 a month according to the U.S. Census Bureau’s 2020 to 2024 American Community Survey (Homzora Dallas dataset, Table B25064), a deposit equal to one month of rent is real money, and getting it back depends on knowing the rules before you move out, not after.

Texas does not leave deposit refunds to the goodwill of landlords. Subchapter C of Chapter 92 of the Texas Property Code sets a firm refund deadline, defines what a landlord may and may not deduct, and attaches penalties to bad faith. This guide walks through every one of those rules as they apply to a Dallas lease, then explains exactly what to do if your money does not come back.

Homzora is a housing research publisher, not a law firm. This article explains Texas statutes in plain English and is not legal advice for your specific situation.

The short answer

  • Your landlord must refund your deposit, or send an itemized list of deductions, on or before the 30th day after you surrender the unit (Texas Property Code § 92.103).
  • The clock only obliges the landlord once you give a written forwarding address (§ 92.107).
  • Your landlord may not keep any part of the deposit to cover normal wear and tear (§ 92.104).
  • A landlord who keeps a deposit in bad faith can owe $100, three times the amount wrongfully withheld, and your reasonable attorney’s fees (§ 92.109).
  • You may not stop paying your last month’s rent on the theory that the deposit covers it (§ 92.108).

How much can a Dallas landlord charge as a deposit?

Texas sets no statewide cap on the size of a security deposit. The Texas State Law Library’s guide to security deposits describes the refund and deduction rules in detail but identifies no maximum amount a landlord may collect (Texas State Law Library, Security Deposits). In practice, that means the deposit is whatever you and the landlord agree to in the lease.

That absence of a cap matters more in Dallas than you might think. Of the roughly 533,900 occupied homes in the city, about 307,300, or 57.6 percent, are occupied by renters (Homzora Dallas dataset, Table B25003). Renters are the majority, and many are stretched: about 72,400 Dallas renter households, or roughly 23.5 percent of all renter households, spend half or more of their income on rent (Homzora Dallas dataset, Table B25070). For a household in that position, a deposit of one and a half or two months of rent can be the difference between signing a lease and not.

Because the law does not limit the amount, the place to push back is before you sign. Ask whether the landlord offers a reduced deposit for strong credit, whether a deposit alternative product is optional rather than required, and whether any part of the money is labeled as a nonrefundable fee rather than a deposit. A true deposit is refundable under the statute; a fee usually is not.

What counts as a security deposit

Section 92.102 defines a security deposit as any advance of money, other than a rental application deposit or an advance payment of rent, that is intended primarily to secure performance under a lease (§ 92.102). That definition is important when your lease uses creative labels. If money is held to protect the landlord against damage or unpaid rent, it is likely a deposit under Texas law, whatever the lease calls it.

The 30 day refund deadline

Section 92.103 requires the landlord to refund the deposit on or before the 30th day after the date you surrender the premises (§ 92.103). Surrender generally means you have moved out and returned possession, which in practice means returning keys and access devices as your lease requires.

A lease can require you to give advance notice of surrender as a condition of getting your deposit back, but only if that requirement is underlined or printed in conspicuous bold print in the lease (§ 92.103(b)). Read your lease for that clause now, while you still have time to comply with it.

Why your forwarding address starts everything

Under Section 92.107, a landlord is not obligated to return your deposit or give you a written description of damages and charges until you give the landlord a written statement of your forwarding address (§ 92.107). The Texas State Law Library notes that failing to provide one does not forfeit your right to a refund, but it does slow everything down (Texas State Law Library).

The practical step is simple. Put your forwarding address in writing on the day you return your keys, keep a copy, and if possible get a signature or an email reply acknowledging it. If you send it by mail, use a method that gives you proof of delivery.

What a landlord can and cannot deduct

Section 92.104 allows a landlord to 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. It also states plainly that the landlord may not retain any portion of a security deposit to cover normal wear and tear (§ 92.104).

The Property Code defines normal wear and tear as deterioration that results from the intended use of a dwelling, and it excludes deterioration that results from negligence, carelessness, accident, or abuse of the premises by the tenant, household members, or guests (§ 92.001).

Usually normal wear and tearUsually chargeable damage
Carpet worn in walking paths after years of useBurns, large stains, or pet damage to carpet
Faded paint or minor scuffsHoles in walls beyond small nail holes, or unapproved paint colors
Loose door handles from ordinary useBroken doors or frames
Minor scratches on floors from furnitureDeep gouges or water damage from neglect

The table reflects the general distinction the statute draws between ordinary use and negligence or abuse. Whether a particular mark crosses the line depends on facts such as how long you lived in the unit, which is why move in and move out photos matter so much.

The itemized list

If the landlord keeps any part of the deposit, Section 92.104 requires a written description and itemized list of all deductions to be given with the balance of the deposit. The exception is when you owe rent and there is no controversy about the amount (§ 92.104(c)). A single line that reads “cleaning and repairs” is not much of an itemized list; you are entitled to know what was charged and why.

Penalties for keeping a deposit in bad faith

Texas puts teeth into these rules. Under Section 92.109, a landlord who in bad faith retains a security deposit in violation of the subchapter is liable for $100, three times the portion of the deposit wrongfully withheld, and the tenant’s reasonable attorney’s fees in a suit to recover the deposit (§ 92.109(a)).

A landlord who in bad faith fails to provide the required written description and itemized list forfeits the right to withhold any portion of the deposit or to bring suit against the tenant for damages to the premises, and is liable for the tenant’s reasonable attorney’s fees (§ 92.109(b)). The statute also creates a presumption that a landlord who fails to return the deposit or provide the list within 30 days after surrender acted in bad faith (§ 92.109(d)).

What that looks like at Dallas rent levels

Take a deposit equal to the Dallas median gross rent of $1,472. Suppose your landlord wrongfully keeps $500 of it and a court finds bad faith. Under the formula in Section 92.109(a), the landlord would owe $100 plus three times $500, which is $1,600, plus your reasonable attorney’s fees. That arithmetic is the reason a well documented demand letter often resolves deposit disputes before anyone goes to court.

Do not skip your last month’s rent

It is tempting to tell a landlord to “just keep the deposit” as your final month of rent. Texas law forbids it. Section 92.108 says a tenant may not withhold payment of any portion of the last month’s rent on grounds that the deposit is security for unpaid rent, and a tenant who does so in bad faith can be liable for three times the rent wrongfully withheld plus the landlord’s reasonable attorney’s fees (§ 92.108). Pay your final rent and claim your deposit through the normal process.

A move out checklist for Dallas renters

  1. Find your move in record. Locate any inventory or condition form you signed and the photos you took when you moved in.
  2. Read the lease for a notice clause. If advance notice of surrender is required in bold or underlined text, give it in writing and on time (§ 92.103(b)).
  3. Clean and repair what you caused. Fixing small damage yourself is usually cheaper than a deduction.
  4. Photograph every room after you empty it. Include close ups of floors, walls, appliances, and fixtures, with the date visible in the file data.
  5. Return every key and access device and get a dated receipt.
  6. Deliver your forwarding address in writing and keep proof (§ 92.107).
  7. Mark day 30 on your calendar. Count from the date you surrendered the unit.

If your Dallas landlord keeps your deposit

Step one: send a written demand

Write a short letter that states your move out date, the date you gave your forwarding address, the amount of the deposit, the amount you believe is owed, and a deadline to pay. Cite Sections 92.103, 92.104, and 92.109 of the Texas Property Code. Many disputes end here because the landlord can read the penalty formula as easily as you can.

Step two: file in justice court

Texas justice courts hear small claims, and the Texas State Law Library notes that deposit claims of less than $20,000 can be filed there (Texas State Law Library). In Dallas, that means the Justice of the Peace court for the precinct where the property is located. The courts are designed so that people can represent themselves, and TexasLawHelp.org publishes free forms and instructions for deposit cases (TexasLawHelp.org).

Step three: get free help if you need it

Legal Aid of NorthWest Texas provides free civil legal services to eligible low income residents of Dallas and surrounding counties (Legal Aid of NorthWest Texas). The Texas Young Lawyers Association also publishes free plain language guides for renters, including its Tenants’ Rights Handbook (Texas Young Lawyers Association, renting resources).

Frequently asked questions

Does my Dallas landlord have to keep my deposit in a separate account or pay interest?

Chapter 92 of the Texas Property Code does not require a separate account or interest on residential security deposits. Its rules focus on refunds, deductions, and penalties (Texas Property Code Chapter 92). Some other states require both, which is one reason Texas renters should not assume rules they read about elsewhere apply here.

What if the building is sold while I live there?

Under Section 92.105, a new owner is liable for the return of security deposits according to the subchapter, subject to the conditions in that section (§ 92.105). Ask the new owner or manager in writing to confirm the amount of your deposit on file.

Can my lease waive these protections?

No. Section 92.006(a) provides that a landlord’s duties and a tenant’s remedies concerning security deposits may not be waived (§ 92.006). A lease clause that claims you give up your deposit rights does not override the statute.

How do I know what is normal wear and tear in an older Dallas apartment?

Age matters. About 30,000 Dallas housing units were built in 1939 or earlier, while only about 10,700 were built in 2020 or later (Homzora Dallas dataset, Table B25034). Finishes in an older unit may already be near the end of their useful life, and ordinary deterioration over a long tenancy is exactly what Section 92.104 protects you from paying for.

Explore the data behind this guide

Every Dallas figure in this article comes from Homzora’s open data library, which republishes U.S. Census Bureau tables in free CSV and JSON files. See the full Dallas data library for rent, renter cost burden, commuting, and housing age across Dallas, Fort Worth, Plano, Frisco, and Arlington.

Sources

About the figures in this article. Rent figures here reflect the market as of October 2026. Boston rents move, and published estimates vary between sources because they measure different things: asking rents, signed leases, and differing unit mixes. For the figures we currently publish, with the method behind them, see our open datasets and methodology.