Whether you are dealing with a single family rental or a complex of multi-unit buildings, you have to follow the Texas Property Code. Here are some common questions regarding security deposits, lease terminations, and rental applications. This information is provided by the Texas Association of Realtors.
1. True or False? A security deposit can be held in a property manager’s business account for up to three business days before it is considered commingling of funds. False, security deposits must only be held in a trust account.
2. True or False? The maximum amount a landlord can demand as a security deposit is two months rent. False, the Texas Property Code doesn’t dictate a maximum amount. The security deposit is negotiable between the landlord and tenant.
3. True or False? A tenant does not automatically forfeit the security deposit if he breaches his lease. True, although the Texas Property Code permits a landlord to deduct damages and charges resulting from breaching the lease, there isn’t an automatic forfeiture.
4. True or False? An application deposit is given to a landlord in connection with a rental application and is refunded to the applicant if his application is rejected. True.
5. True or False? An applicant is considered rejected if the landlord doesn’t give notice of accepting the applicant seven days after the applicant submits a completed rental application. True.
Amanda Vertz, Realtor
If you or anyone you know is looking to buy, sell or invest in real estate, please contact me. www.VertzHomes.com