Free Texas Security Deposit Disposition Statement | Fillable PDF Form

💰 Texas Security Deposit Disposition Statement

Final Accounting & Itemization After Move-Out – Required Within 30 Days

⏰ CRITICAL 30-DAY DEADLINE

Texas Property Code § 92.103 requires landlords to:

  • Within 30 days of tenant surrendering premises
  • Send itemized statement of all deductions from security deposit
  • Return remaining deposit (if any) with statement
  • Include receipts/estimates for repairs costing $125 or more
  • PENALTY for missing deadline: Forfeit right to keep ANY deposit + liable for $100 penalty + tenant’s attorney fees + 3x deposit if acted in bad faith

📋 What This Statement Must Include

Required elements per Texas law:

  • Original security deposit amount
  • Itemized list of ALL deductions
  • Description of each deduction
  • Amount charged for each item
  • Receipts or estimates for repairs $125+
  • Remaining balance owed to tenant
  • Landlord’s forwarding address

⚠️ Good Faith Requirement

Landlords can only deduct for:

  • Unpaid rent (not including future rent)
  • Damage beyond normal wear and tear
  • Unpaid utility bills (if lease requires tenant to pay)
  • Cost of removing tenant’s property (if abandoned)
  • Breach of lease (early termination fees if in lease)

CANNOT deduct for normal wear and tear!

Security Deposit Disposition Statement

Legal Authority: This disposition statement is required by Texas Property Code §§ 92.103-92.109. Must be sent to tenant’s last known address or forwarding address within 30 days of tenant surrendering the premises. Failure to comply within 30 days results in forfeiture of landlord’s right to withhold any portion of the security deposit.

Property & Tenant Information

If no forwarding address provided, use last known address

Landlord Information

Lease & Move-Out Dates

Date tenant surrendered keys and vacated premises

This statement must be sent by this date

Original Security Deposit

Most TX deposits don’t earn interest

Itemized Deductions

📝 Deduction Categories

Common allowable deductions:

  • Unpaid Rent: Past due rent, not future rent
  • Damages: Beyond normal wear and tear (holes, stains, broken items)
  • Cleaning: If property left excessively dirty
  • Repairs: Fix damage tenant caused
  • Unpaid Utilities: If tenant responsible per lease
  • Keys/Locks: Unreturned keys, lock changes if needed
  • Removal Costs: If tenant abandoned property

Summary & Calculation

💰 Disposition Calculation

Original Security Deposit: $0.00
Plus: Interest (if any): $0.00
Total Available: $0.00
Less: Total Deductions: -$0.00
Amount Being Returned to Tenant: $0.00

Receipts & Documentation

📎 Receipt Requirement (§ 92.104)

For any repair/cleaning item costing $125 or more:

  • MUST provide paid receipt or invoice
  • OR provide written estimate from contractor
  • Must include description of work, cost, and date
  • Failure to provide receipt = cannot deduct that amount
  • Can deduct up to $125 without receipt per item

Refund Method

Additional Notes

Certification

✍️ Landlord Certification

By signing below, landlord certifies:

  • All deductions are accurate and lawful under Texas law
  • Deductions are only for unpaid rent, damages beyond normal wear and tear, or other authorized charges
  • Receipts/estimates provided for items $125 or more
  • This statement sent within 30 days of tenant surrendering premises

📚 Security Deposit Disposition Guide

Legal Authority: Texas Property Code Chapter 92, Subchapter C governs security deposits. § 92.103 requires landlords provide itemized statement of deductions within 30 days. § 92.104 requires receipts/estimates for items $125+. § 92.108 allows tenant to sue for deposit plus $100 penalty plus attorney fees if landlord fails to comply. § 92.109 allows treble damages if landlord acted in bad faith.

30-Day Deadline Is Critical

The clock starts ticking when tenant surrenders the premises:

  • Surrender date: When tenant returns keys AND vacates property completely
  • Not lease end date: If tenant holds over past lease end, deadline starts when they actually leave
  • 30 calendar days: Not business days – includes weekends and holidays
  • Postmark matters: Statement must be postmarked by day 30, not received by day 30
  • Email OK if agreed: Can send electronically if lease allows

⚠️ Penalties for Missing 30-Day Deadline

If landlord fails to provide statement within 30 days:

  • Forfeits right to withhold: Must return ENTIRE deposit, can’t keep any
  • $100 penalty: Landlord liable for $100 minimum
  • Tenant’s attorney fees: Must pay tenant’s legal costs
  • Treble damages: If acted in bad faith, tenant gets 3x deposit amount
  • Court costs: Landlord pays all court costs if tenant sues

What Can Be Deducted

Texas law allows deductions for:

  • Unpaid rent: Past due rent owed through move-out date
    • Cannot charge for rent after tenant vacates
    • If tenant gives proper notice, no future rent owed
    • If breaks lease, can charge early termination fee IF in written lease
  • Damages beyond normal wear and tear: Actual damage tenant caused
    • Holes in walls (not nail holes)
    • Broken fixtures, appliances
    • Carpet stains, burns, tears
    • Missing or broken blinds
    • Pet damage (urine, scratches)
  • Excessive cleaning: If property left unreasonably dirty
    • Must be beyond broom-clean standard
    • Food/grease buildup, excessive dirt
    • Not just normal dust/dirt from occupancy
  • Unpaid utility bills: If lease makes tenant responsible
    • Only if clearly stated in lease
    • Must have actual bills showing charges
  • Cost of removing abandoned property: If tenant left belongings
    • Actual reasonable cost of removal/storage/disposal
    • Must follow abandoned property procedures
  • Unreturned keys: Cost to replace locks if keys not returned
    • Actual cost of re-keying or new locks
    • Reasonable for security reasons

Normal Wear and Tear vs. Damage

CANNOT deduct for normal wear and tear:

✅ Normal Wear and Tear (CANNOT charge)

  • Paint: Fading, minor scuffs, normal aging after several years
  • Carpet: Traffic patterns, slight fading, normal compression in walkways
  • Flooring: Minor scratches from normal use, slight fading
  • Walls: Small nail holes from hanging pictures, minor scuffs
  • Fixtures: Normal aging, slight discoloration, normal functioning wear
  • Appliances: Normal aging and functioning wear over time

❌ Actual Damage (CAN charge)

  • Paint: Large holes, gouges, excessive markings, crayon/marker
  • Carpet: Stains, burns, tears, pet urine damage, excessive soil
  • Flooring: Deep scratches, gouges, water damage, pet damage
  • Walls: Large holes, dents, unauthorized paint, wallpaper damage
  • Fixtures: Broken, missing, deliberately damaged items
  • Appliances: Broken, inoperative, damaged beyond normal wear

Age and useful life matter:

  • Depreciation applies: Can’t charge for new item if old one had limited life left
  • Carpet example: 10-year-old carpet can’t be charged at new carpet price
  • Pro-rate charges: Charge based on remaining useful life
  • Industry standards: HUD uses useful life estimates (carpet 5-7 years, paint 2-3 years)

Receipt Requirement ($125 Rule)

Texas Property Code § 92.104:

📎 $125 Receipt Threshold

For any single item costing $125 or more:

  • MUST provide either:
    • Paid receipt/invoice from contractor/vendor, OR
    • Written estimate from contractor
  • Receipt/estimate must include:
    • Description of work performed
    • Cost of work
    • Date of work or estimate
    • Contractor/vendor information
  • If no receipt provided: Can only deduct up to $125 for that item
  • Multiple small items: Each under $125 doesn’t need receipt

Examples:

  • Carpet cleaning – $250: MUST provide receipt from cleaning company
  • Wall repair – $300: MUST provide invoice from handyman or estimate
  • Five items at $100 each: No receipts needed (each under $125)
  • Painting entire unit – $600: MUST provide contractor receipt/estimate

How to Calculate Deductions

Best practices for itemizing:

  1. Be specific: Don’t just say “damages” – list each item
    • Bad: “Repairs – $500”
    • Good: “Repair hole in bedroom wall – $150”, “Replace broken closet door – $200”, “Carpet stain removal – $150”
  2. Use actual costs: Not estimated guesses
    • Get actual invoices from contractors
    • Or written estimates if work not yet done
    • Don’t inflate costs
  3. Account for depreciation: Don’t charge full replacement if item old
    • 5-year-old carpet at end of life: charge for cleaning only, not replacement
    • Old paint: may not be chargeable if normal aging
  4. Reasonable charges only: Must be fair market rates
    • Can’t charge $100/hour for work that costs $50/hour locally
    • Use licensed contractors when possible

Unpaid Rent Calculations

How to calculate unpaid rent:

  • Through move-out date: Rent owed up to and including day tenant surrenders property
  • Daily rate: Monthly rent ÷ days in month = daily rate
  • Example: $1,200/month rent, 30-day month = $40/day
    • Tenant paid through June 15, moved out June 25
    • Owes for June 16-25 (10 days)
    • 10 days × $40 = $400 owed
  • Cannot charge beyond surrender: Even if lease had time remaining
  • Early termination fees: Only if specifically in written lease

Where to Send Statement

Proper mailing address:

  • Forwarding address: If tenant provided one, use it
  • Last known address: If no forwarding address, use rental property address
  • Certified mail recommended: Provides proof of mailing date
  • Regular mail sufficient: Law doesn’t require certified, but recommended
  • Email if agreed: Can use email if lease permits electronic notices

If Deductions Exceed Deposit

When tenant owes more than deposit covers:

  • Still send statement: Must send within 30 days even if no refund
  • Show calculation: Itemize all charges, show deposit applied, show balance owed
  • Demand letter: Can request payment of balance
  • Sue in small claims: Can sue tenant for amounts exceeding deposit
  • Same receipt rules apply: Still need receipts for items $125+

Tenant’s Rights

What tenant can do if they disagree:

⚖️ Tenant Remedies

If tenant believes deductions are improper:

  • Request explanation: Ask landlord for more details
  • Request receipts: If not provided for items $125+
  • Negotiate: Try to resolve dispute directly
  • File in small claims: Sue for wrongful withholding
    • Can recover deposit amount
    • Plus $100 penalty
    • Plus attorney fees
    • Plus 3x deposit if bad faith
  • File complaint: Report to Texas Attorney General

Bad Faith

Treble damages for bad faith retention:

  • What is bad faith: Knowingly keeping deposit tenant entitled to
  • Examples of bad faith:
    • Charging for normal wear and tear when landlord knows it’s not allowed
    • Inflating charges significantly above actual costs
    • Claiming damages that don’t exist
    • Refusing to return deposit without any deductions
    • Missing 30-day deadline deliberately
  • Penalty: Tenant can recover 3 times the wrongfully withheld amount
  • Plus other penalties: Still get $100 minimum and attorney fees

Best Practices for Landlords

✅ Landlord Best Practices

  • Move-in inspection: Document condition at start with photos/video
  • Move-out inspection: Detailed inspection with photos of any damage
  • Get estimates immediately: Don’t wait – get quotes right away
  • Keep all receipts: For any work done, save invoices
  • Be honest: Only deduct for actual damages, not normal wear
  • Send early: Don’t wait until day 29 – send ASAP
  • Use certified mail: Proof of mailing date protects you
  • Keep copies: Statement, receipts, proof of mailing
  • Be detailed: Specific descriptions of each deduction
  • Reasonable charges: Fair market rates, not inflated

Common Mistakes

❌ Errors to Avoid

  • Missing 30-day deadline: Most common and most costly error
  • No receipts for $125+ items: Forfeit right to deduct over $125
  • Charging for normal wear: Not legally allowed
  • Vague descriptions: “Cleaning – $500” without detail
  • Inflated charges: Charging more than fair market rate
  • Not itemizing: Must list each deduction separately
  • Charging for future rent: Only through actual move-out
  • Withholding without explanation: Must provide written statement

⚖️ Legal Disclaimer

This form is provided for informational purposes only and does not constitute legal advice. Texas Property Code §§ 92.103-92.109 govern security deposits. Landlord must provide itemized statement within 30 days of tenant surrendering premises. Must include receipts/estimates for items $125 or more. Failure to comply results in forfeiture of deposit, $100 penalty, attorney fees, and potentially treble damages if bad faith.

Can only deduct for lawful charges. Allowed: unpaid rent, damage beyond normal wear and tear, unpaid utilities if in lease, costs of removing abandoned property. NOT allowed: normal wear and tear, future rent (unless early termination fee in lease), charges not in lease. Be honest and fair in assessments.

Keep documentation. Maintain move-in/move-out inspection reports, photos, receipts, estimates, proof of mailing. For questions about Texas security deposit law, consult real estate attorney.