Texas has no statewide cap on application fees or deposits, which makes it easy to assume there are no screening rules. There are, and the ones that bite hardest are about what you say before and during the application. Here is what a Texas landlord or leasing agent can ask at each stage.
What can you ask a prospect on the first call or message?
Ask about the unit, the timing and your criteria, and ask every prospect the same questions. That keeps the conversation about the home rather than the person.
Questions that are fine on first contact:
- When do you want to move in, and for how long?
- How many people will live in the unit? Reasonable occupancy limits are allowed under federal law (42 U.S.C. 3607).
- Do you have pets? An assistance animal for a person with a disability is not a pet, and refusing a reasonable accommodation is unlawful (24 CFR 100.204).
- What rent range works for you, and would you like a copy of our selection criteria?
On housing vouchers, Texas takes a different line from many states. The Texas Fair Housing Act does not list source of income as a protected class (Prop. Code 301.021), and cities and counties may not require landlords to accept tenants whose rent includes federal housing assistance, except in ordinances protecting military veterans (Local Gov’t Code 250.007).
What should you never ask?
Never ask about race, color, religion, sex, familial status, national origin or disability. The Texas Fair Housing Act protects those classes (Prop. Code 301.021 and 301.025), matching the federal list (42 U.S.C. 3604).
Two Texas details are worth knowing. Race discrimination includes discrimination based on hair texture or a protective hairstyle such as braids, locks or twists (Prop. Code 301.0045). Familial status covers a person who is pregnant or in the process of obtaining custody of a child (Prop. Code 301.004).
Questions to keep off every call, text and form:
- “Where are you from originally?”
- “What church do you go to?”
- “Do you have kids?” or “Are you expecting?”
- “Do you have a disability?” or “What is that medication for?” Federal rules ban asking whether an applicant has a disability or how severe it is. You may ask all applicants whether they can meet the requirements of the tenancy (24 CFR 100.202(c)).
Your statements count too. Texas law bars any notice, statement or advertisement about a rental that indicates a preference or limitation based on a protected class (Prop. Code 301.022). Cities can add classes: Austin, for example, protects sexual orientation, transgender status, gender identity and gender expression in housing (City of Austin). Check the ordinance where your property sits.
What can the rental application ask for?
The application can ask for identity details, rental history, references, employment and income, and consent to screening. The rule that matters most in Texas is about the criteria that go with it.
When you give someone a rental application, you must make available a printed notice of your tenant selection criteria and the grounds for denial, including criminal history, previous rental history, current income, credit history, and failure to give accurate or complete information (Prop. Code 92.3515). The applicant signs an acknowledgment that includes wording set by the statute. It may sit inside the application if the notice is underlined or in bold.
If the acknowledgment is not signed, there is a rebuttable presumption that you did not give the notice. If you reject an applicant without having given it, you must return the application fee and any application deposit.
Can you run credit and background checks, and when?
Yes, once the applicant has applied and authorized it. If a consumer report contributes to a denial, a co-signer requirement, a larger deposit or higher rent, send an adverse action notice (FTC). It names the reporting company, says the company did not make the decision, and explains the right to a free report within 60 days and to dispute; include the score and key factors if you used a credit score.
If criminal history is one of your criteria, it has to be in your printed selection criteria (Prop. Code 92.3515). Two federal limits frame what you will see:
- Screening companies may not report arrest records, civil suits or civil judgments more than seven years old, while criminal convictions have no federal time limit (15 U.S.C. 1681c).
- Fair housing law does not prohibit acting on a conviction for the illegal manufacture or distribution of a controlled substance (42 U.S.C. 3607(b)(4); Prop. Code 301.021(c)).
Whatever criminal history rules you set, write them down and apply them the same way to everyone.
Are application or screening fees capped?
No. The subchapter on rental applications sets no dollar limit (Prop. Code ch. 92, subch. I). It does set the ground rules:
- An application fee is a nonrefundable sum to offset the cost of screening. An application deposit is refundable if the applicant is rejected.
- An applicant is deemed rejected if you do not give notice of acceptance by the seventh day after they submit a completed application on your form (Prop. Code 92.352).
- A landlord who in bad faith fails to refund a fee or deposit owed is liable for $100, three times the amount wrongfully kept, and the applicant’s reasonable attorney’s fees (Prop. Code 92.354).
What about security deposits?
Texas sets no maximum deposit in its security deposit subchapter (Prop. Code ch. 92, subch. C). What it regulates is the refund.
You must refund the deposit on or before the 30th day after the tenant surrenders the premises, with a written, itemized list of any deductions, and you may not keep any part for normal wear and tear (Prop. Code 92.103 and 92.104). You do not have to refund until the tenant gives a written forwarding address (Prop. Code 92.107).
If you offer a monthly fee in lieu of a deposit, you must also offer a regular deposit, and you may not use the applicant’s choice between them as an approval criterion (Prop. Code 92.111).
At a glance
| Rule | Texas |
|---|---|
| Application fee cap | None in Prop. Code ch. 92; fee refunded if printed selection criteria were not given and the applicant is rejected |
| Security deposit cap | None in Prop. Code ch. 92; refund within 30 days of surrender |
| Source-of-income protection | Not in the Texas Fair Housing Act; cities and counties cannot require voucher acceptance, except for veterans |
| Criminal history | Must be listed in printed selection criteria if used; federal seven-year limit on reporting arrests |
| Key statutes | Prop. Code 92.3515, 92.352, 92.354, 92.103, 301.021; Local Gov’t Code 250.007 |