"My tenant just gave notice. What do I actually have to do with the security deposit, and how fast?"
That's one of the most common calls I get from owners in Keller, Roanoke and Northlake, especially from folks who are renting out a home for the first time. The deposit feels simple until move-out day, and then the questions pile up: What can I deduct? Do I need receipts? What if they never send me an address? Here's the playbook we use at Salsberry on every move-out, built around what the Texas Property Code actually requires.
The Short Answer
Texas gives you 30 days after the tenant surrenders the home to refund the deposit, minus any lawful deductions, with a written, itemized list of those deductions. You can deduct for damage and charges the tenant owes under the lease, but not for normal wear and tear. The owners who get into trouble usually aren't trying to cheat anyone. They miss the deadline, skip the itemized list, or can't prove the condition of the home at move-in. All three are preventable.
This post is general information, not legal advice. For a specific situation, talk with a Texas real estate attorney.
What the Texas Property Code Requires
The rules live in Chapter 92, Subchapter C of the Texas Property Code. These are the sections every owner should know:
- The 30-day clock (Section 92.103): You must refund the deposit on or before the 30th day after the tenant surrenders the premises, subject to the forwarding-address rule below.
- Deductions and the itemized list (Section 92.104): You may deduct damages and charges the tenant is legally liable for under the lease or because they breached the lease. You can't keep any part of the deposit for normal wear and tear. If you keep any of it, you must send the balance along with a written description and itemized list of every deduction. The one exception is when the tenant owes rent at move-out and there's no dispute about how much.
- The forwarding address (Section 92.107): You aren't required to send the refund or the itemized list until the tenant gives you a written forwarding address. A tenant who doesn't provide one doesn't lose the right to the refund, though, so keep the deposit accounted for and ready.
- Advance-notice clauses (Section 92.103(b)): If your lease requires advance notice of move-out as a condition of getting the deposit back, that requirement is only enforceable if it's underlined or in conspicuous bold print in the lease.
- The last month's rent (Section 92.108): A tenant can't skip the last month's rent and tell you to "just keep the deposit." The deposit isn't prepaid rent, and the statute treats withholding the last month's rent that way as presumed bad faith.
Why does all this matter? Under Section 92.109, an owner who misses the 30-day deadline for the refund or the itemized list is presumed to have acted in bad faith. Bad-faith retention can cost $100, plus three times the amount wrongfully withheld, plus the tenant's attorney's fees, and the owner carries the burden of proving the deductions were reasonable. A $400 carpet charge handled sloppily can turn into a much bigger bill. That's the risk a good process removes.
Our Move-Out Playbook, Step by Step
1. It Starts at Move-In
Every deposit decision at move-out depends on what you documented at move-in. We complete a detailed move-in condition report with date-stamped photos of every room, appliance, floor and wall, and the resident gets a copy. If you can't show the carpet was new or the walls were freshly painted on day one, it's very hard to justify a deduction later. Our residents get a head start with our first 30 days move-in checklist, which helps both sides agree on the home's condition early.
2. Write the Lease With Move-Out in Mind
The lease is what makes a charge lawful under Section 92.104. Clear terms on cleaning standards, carpet care, pet damage, lost keys and remotes, yard condition and the notice required to vacate (in bold or underlined, per Section 92.103(b)) give you a solid footing when it's time to itemize.
3. Send a Move-Out Letter When Notice Arrives
When a resident gives notice, we send a short, friendly letter: the move-out date, our cleaning expectations, where to return keys, garage remotes and gate cards, and a request for a written forwarding address. Asking early gets most residents to provide it, and it starts your 30-day process off cleanly.
4. Inspect Promptly and Photograph Everything
We walk the home as soon as possible after the keys come back and photograph it in the same order as the move-in report, so every "after" photo has a matching "before." Utilities should still be on so lights, appliances, plumbing and HVAC can be tested. Our post on what happens after a rental inspection covers how we turn findings into a repair plan.
5. Separate Damage From Normal Wear and Tear
This is where most disputes start, so be honest and consistent:
- Usually normal wear and tear: light scuffs and small nail holes from hanging pictures, carpet worn in walkways after a multi-year lease, faded blinds, and minor grout discoloration.
- Usually chargeable damage: pet stains and odor, large holes in drywall, broken blinds or doors, burns in countertops, missing fixtures, and a home left dirty or full of belongings beyond what the lease allows.
- Charge for the loss, not a full upgrade: If a five-year-old carpet is ruined, the deduction should reflect its age and remaining life, not the cost of brand-new carpet.
6. Itemize Like Someone Else Will Read It
Each deduction gets a plain description, the amount, and backup: an invoice, a vendor estimate or a photo. Unpaid rent, utilities or fees owed under the lease go on the same list. Then we send the refund balance and the itemized statement to the forwarding address well inside the 30-day window, and we keep a copy and proof of mailing.
7. Keep the File
Move-in report, move-out photos, invoices, the itemized statement and the mailing record all stay in the property's file. If a question comes up months later, you have the answer in minutes.
The Property Management Angle
- We run the clock for you: Every move-out gets a deadline on our calendar the day the keys come back, so the 30-day window never sneaks up on an owner who's busy or out of state.
- Consistent standards protect you: We apply the same wear-and-tear standards on every home, which is what makes deductions easy to defend.
- Fast turns save money: Our vendors usually start the make-ready work right after the inspection, so the home is back on the market quickly. We average about 12 days on market.
- Prevention beats deductions: Careful tenant screening up front means fewer damaged homes at the end. I also wrote earlier about Texas security deposit laws if you want the broader rules in one place.
Want Move-Outs Handled Right, Every Time?
Parker and I bring 22+ years of combined property management experience. We've leased more than 500 homes, average about 12 days on market and have earned 70+ five-star reviews. We manage residential homes only, so this is all we do.
Our pricing is simple. Full-service management is an 8% monthly management fee plus a leasing fee of 50% of the first month's rent. If you only need a great tenant placed, Placement Only is 100% of one month's rent. There are no other fees. Our agreements are month-to-month and can be canceled anytime, and if we placed the tenant, we handle the eviction for free. See the details on our pricing page.
If you own a rental in Keller, Roanoke, Northlake, Haslet or Flower Mound, I'm happy to talk through your next move-out or put together a free, no-obligation rental analysis. Call (304) 878-8629 anytime, or learn more about our Keller property management, Roanoke property management and Northlake property management services.
