A key component to the buy-and-hold strategy for Texas real estate residential investors is property management. While collecting rent may seem like easy passive income, there are several Texas residential landlord tenant laws and regulations in place for landlords. As a first time landlord, investors may face uncertainty and make mistakes along the way. This guide is designed to point out key issues and considerations for a newly anointed landlord.

First, consider whether you plan on making your property a long term rental (typically 12 months) or short term rental. If you plan on the short term rental route, be sure to review your local homeowner’s association rules also known as declaration, and covenants regarding single family home dwellings. Once you have confirmed it’s acceptable, plan your rental listing platforms, tenant screening process and management process.

For long term rentals you may consider using platforms such as Zillow.com or Apartments.com for online listings. Both long term and short term rentals may be posted on social media market platforms such as Facebook. Additionally, there are short term rental platforms like VRBO or Airbnb. You may also consider listing it on your local newsletter or newspaper. Few residential landlords will also have a physical sign indicating the property is for rent. Lastly, you can go a more traditional route and find a realtor to post the listing on HAR.com for you, but they typically require a fee. On average the fee will be the same amount as the first month’s rent, but be sure to check with your local realtor or broker as each office operates differently.

Once you have a successful listing, consider your tenant screening process. We have a short and handy checklist here under our resources tab. Depending on what platforms you list on, you may be receiving calls and emails daily with potential residential tenants requesting showing or additional information and sending applications. A tip is to create a short and simple script that you can use over and over throughout the process, making it seamless each time you handle another call or email.

The screening process should include some form of credit check, background check, and identity confirmation through the application. A common application form is the Texas Realtors Residential Lease Application (TXR-2003). You should also set an income requirement (typically 3x the monthly rent) and verify the potential tenant’s ability to pay. Additionally, it is important to confirm the tenant is employed and received good referrals from previous landlords. Come up with an outline of requirements for the potential tenant to meet that ensures they have good credit history and are a responsible tenant. In the event you decline an application, you should inform the potential tenant in writing through an adverse action letter.

Once you have determined who your new tenant will be, send them a deposit to hold letter and welcome letter outlining their lease agreement start date, security deposit amount, first month’s rent and any other requirements before move in. To see a sample of a deposit to hold letter and welcome letter, subscribe to our mailing list.

Prepare the necessary documents to execute prior to the tenant moving in. These documents may include a lease, pet addendum, inspection report, community/house rules and disclosures. You may need additional documents or addendums depending on your situation.

Finally, once the documents are executed and the tenant receives the keys to the property, set up your management procedure. Consider how the tenant will pay monthly rent, such as through mailing certified funds, online payments or personal pickup/delivery of payments. Be sure to explain to your tenant how to submit a maintenance request or how to contact you in an emergency.

From there do your best to maintain a stable and productive relationship with the tenant. In the event of a lease violation or eviction, see our article on residential evictions for more information.

Landlording can be daunting for a new residential investor, so be sure to check out online resources and seek help from professionals or a mentor.

Our firm handles landlord/tenant issues for our investor clients regularly. We would be happy to help you. To speak to an attorney and learn more about our services, schedule a consultation here.

An eviction is the judicial process when a landlord may remove a tenant from the premises. Although many people commonly know the term eviction, some may be unfamiliar with the legal term in the Texas Property Code, a “forcible detainer” action. There are several causes for evictions such as (1) non-payment of rent, (2) holding over after the lease term has expired, (3) violation of the lease agreement or (4) foreclosure of a property. See our foreclosure series for more information on foreclosure eviction proceedings.

Evictions are governed by Chapter 24 of the Texas Property Code and Civil Procedure Rule 500. The process starts with providing the tenant with a proper notice to vacate. Under the Property Code, a landlord is required to give at least three days’ written notice before a landlord can file the forcible detainer suit. However, a written lease may provide for a shorter or longer period of time.

After the required prescribed time is met, the landlord will file an original petition for the forcible detainer action in the justice of the peace court within the precinct where the property is located. Then, the tenant will be served with notice and a trial date will be set by the court’s clerk. At the trial, the judge will make a determination as to which party has the superior right of possession to the property and the amount of damages, such as back rent, attorney’s fees, court costs, etc.

In the event the landlord receives judgment in their favor, the landlord may file a writ of possession with the court to proceed on regaining judicial access to the property. However, a tenant may appeal the eviction decision within a certain timeframe as ordered by the court. If the tenant successfully appeals the case, the case will be appealed de novo (meaning a new case) and will be sent to the county court. Then the whole process starts over. There are certain requirements a tenant must meet if they attempt to appeal the judgment such as paying a cash bond or filing a proper pauper’s affidavit.

Whether you are a seasoned landlord or a first timer, evictions may be stressful and time consuming. Additionally, each county may have their own requirements. Reach out to an experienced Texas residential eviction attorney at Integrity Law Group PLLC to provide you with the legal advice you need to accomplish your goals.

Chapter 92 of the Texas Property Code governs the residential landlord tenant relationship. In addition to the Texas Property Code there are Federal rules and regulations that outline a landlord’s rights and responsibilities. In this article we outline key rights and responsibilities for Texas landlords. This is not an extensive list and landlords should always do research in their local markets to ensure that they are in compliance with all county and city regulations in addition to the items listed below.

Texas Landlord’s Duty to Repair

Subchapter B of Section 92 explains that a landlord must make a diligent effort to repair or remedy a condition when:

• The tenant has specified the condition in a notice to the person who normally collects rent or to the place where rent is normally paid,
• The tenant is current on rent payments when the notice is given, and
• The condition:
• Materially affects the health and safety of an ordinary tenant, or
• Arises from the landlord’s failure to provide and maintain in good operating condition a device to provide hot water of a minimum of 120 degrees Fahrenheit.

The lease agreement may require that the notice be in writing and delivered in a certain manner by the tenant. However, as a practical matter, any notices between the parties should be in writing and delivered in a trackable manner or with a witness to verify delivery.

Unless a problem is caused by normal wear and tear, the landlord has no duty to repair conditions caused by:

• The tenant,
• A lawful occupant of the premises,
• A member of the tenant’s family,
• A tenant’s guest or invitee.

Texas Landlord’s Duty to Return Security Deposit

Subchapter C of Chapter 92 dictates the rules regarding security deposits. As most landlords are familiar with, a tenant may be required to pay a security deposit prior to moving into the premises. A security deposit is typically used to repair damages to the premises after a tenant moves out. A landlord may not recover changes from a security deposit for normal wear and tear, which is defined as “deterioration that results from the intended use of the dwelling.” However, normal wear and tear does not include the “deterioration that results from negligence, carelessness, accident or abuse of the premises.” Texas Property Code, Section 92.001[4]. In order to make deductions for repairs a landlord is required to give the tenant a written, itemized list of all the deductions.

According to Section 92 a landlord is required to return the security deposit 30 days after the tenant surrenders the premises. Additionally, if the landlord has made deductions from the security deposit, an accounting must also be provided. However, a tenant is required to give the landlord a written statement of the tenant’s forwarding address for purposes of refunding the security deposit. Until the forwarding address is received, the landlord has no duty to return the tenant’s security deposit or give the tenant a written description of damages and charges.

A landlord who wrongly withholds a security deposit or fails to provide a written description of the accounting may be liable to the tenant for damages.

Quiet Enjoyment

A covenant is a promise under the law. A covenant for quiet enjoyment is a promise by the landlord to the tenant that the landlord will not disturb the tenant’s quiet use and enjoyment of the property. This breach can occur when a landlord prevents a tenant from entering the property. However, landlords have the right to exclude tenants under certain circumstances, such as for bona fide repairs, construction or emergencies as long as it is in compliance with the Texas Property Code. Additionally, the landlord does not breach this covenant if the exclusion occurs due to the tenant abandoning the property.

In some instances, a landlord may be liable for constructive eviction. Constructive eviction occurs when (1)  the landlord’s contact materially and permanently interferes with the tenant’s use of the premises and (2) the tenant leaves the property because of the interference. Essentially, the landlord’s actions force the tenant to vacate the property.

However, landlords have the right to evict tenants judicially under Chapter 24 of the Texas Property Code. Or, a landlord may force tenants to leave non-judicially according to the lease. See our article on evictions.

Fair Housing Act

The Texas Department of Housing and Community Affairs (TDHCA) in conjunction with the Texas Workforce Commission regulates the Texas Fair Housing Act. The Fair Housing Act is a federal regulation. Additionally, Texas has its own fair housing policies. The Fair Housing Act prohibits a landlord from discriminating a tenant based on the seven protected classes. These classes include color, religion, race, national origin, sex, disability and familial status. Generally, the Fair Housing Act covers most housing, except (1) owner-occupied buildings with no more than four units, (2) a landlord that only has a few single-family homes that were sold or rented without the use of a broker and (3) housing operated by organizations and private clubs that limit occupancy to members.

Landlords are prohibited from the following:

• Refusing to rent or negotiate,
• Make housing unavailable,
• Deny a property,
• Set different terms, conditions or privileges,
• Provide different housing services of facilities,
• Deny anyone access to or membership in a facility, and
• Advertise or make any statement that indicates a limitation or preference.

This is not an exhaustive list but is meant to give landlords an idea of what is protected under the Fair Housing Act. In the event a landlord discriminates against a tenant a tenant may file a Fair Housing Complaint, which may subject the landlord to investigations. Additionally these  violations are subject to penalties.

While this article lists key responsibilities of landlords, it is ultimately only intended to be a guide. A landlord’s responsibilities may also be designated in the lease or other local rules, regulations and ordinances. If you have questions about any of the responsibilities we discussed above or would like to know more about a Texas landlord’s rights and duties, schedule a free consultation here.