Texas Tenant Screening Laws: What Landlords Can and Cannot Do
Texas leaves screening largely to the landlord – no fee or deposit cap – but the Property Code, the federal FCRA, and the Texas Fair Housing Act still set the rules. Here is how to screen legally in 2026.
Tenant screening in Texas is governed lightly by state statute and heavily by federal law. The Texas Property Code sets the rules for the security deposit, but it says little about how you evaluate an applicant, which makes the federal Fair Credit Reporting Act and fair housing law the real rulebook – and a written, consistent process your best protection.
This guide covers what you may screen, what you can charge, and where Texas is more permissive than other states. If you are new to the mechanics, our overview of how to screen tenants step by step pairs well with the Texas-specific points below.
Video: a plain-language walkthrough of Texas tenant screening, application fees, deposits, and adverse action.
Key Takeaways: Texas Tenant Screening Laws
- No application-fee cap. Texas does not limit screening fees, but they must be reasonable and tied to the actual cost of the report.
- No deposit cap. The deposit must be returned within thirty days with itemized deductions (Texas Property Code section 92.103).
- Bad-faith retention is costly. A landlord who wrongfully withholds can owe one hundred dollars plus three times the withheld amount plus attorney’s fees (section 92.109).
- No statewide source-of-income protection. Texas does not protect source of income and limits cities from compelling voucher acceptance.
What Texas Law Lets You Screen
Texas gives landlords broad authority to evaluate an applicant. With written permission you may obtain a consumer report covering credit, rental and payment history, employment and income, and public records such as criminal convictions and civil judgments. You may set objective standards and decline applicants who do not meet them.
Because Texas regulates so little of the process, consistency is the safeguard: write your criteria down and apply them identically to every applicant. Our guide to the minimum credit score for renting explains how to set a threshold that screens for risk without screening out a protected class.
Application Fees in Texas: No Cap
Texas sets no maximum on a tenant application or screening fee. The only real constraint is reasonableness: the fee should reflect the actual cost of the report rather than serve as a profit center, and it should be charged consistently to every applicant.
Uneven fees, or fees collected with no genuine screening behind them, are the kind of pattern that draws a fair housing complaint even in a permissive state. Treat the fee as part of a documented, even-handed process.
Permissive is not unregulated
The absence of a Texas fee cap does not switch off the federal rules. The Fair Credit Reporting Act still governs the report, and federal fair housing law still governs who you approve.
Security Deposits and the Bad-Faith Penalty
Texas does not cap the security deposit, leaving the amount to the landlord. What the Property Code does regulate is the return: under section 92.103 the landlord must refund the deposit within thirty days after the tenant surrenders the unit, with an itemized list of any deductions.
The penalty for getting it wrong is significant. Under section 92.109 a landlord who acts in bad faith by retaining a deposit can be liable for one hundred dollars plus three times the portion wrongfully withheld, plus the tenant’s reasonable attorney’s fees. Our deeper look at Texas security deposit laws covers permitted deductions and the surrender rules.
Texas Fair Housing and Source of Income
The Texas Fair Housing Act tracks the federal Fair Housing Act, prohibiting discrimination on the basis of race, color, religion, sex, national origin, familial status, and disability, with HUD interpreting sex to include sexual orientation and gender identity in housing. Texas does not add source of income as a protected class.
Texas goes a step further than most permissive states: state law restricts municipalities from requiring landlords to accept Housing Choice Vouchers, so a citywide voucher mandate generally does not bind a Texas landlord. That makes accurate local research important, and it is a point many screening guides get wrong. For the federal baseline, see our Fair Housing Act guide for landlords.
Criminal History, Credit, and Eviction Records
A criminal record can be a lawful basis to decline in Texas, but a blanket no-record policy is the most common fair housing trap. HUD’s 2016 guidance treats criminal-records screening under a disparate-impact lens, so a flat ban can violate the federal Fair Housing Act even without intent. Use an individualized assessment tied to the offense, how recent it is, and safety.
Credit history and prior evictions are cleaner when your standard is objective and consistently applied. You can read how eviction filings arise on our Texas eviction notice laws page. Decide your criteria in advance, write them down, and never improvise them applicant by applicant.
The FCRA: Consent and Adverse Action
When you pull a screening report through a consumer reporting agency, the federal Fair Credit Reporting Act governs the transaction – and in Texas, where state law is largely silent, this is the rule that matters most. You need a permissible purpose and written authorization before ordering the report, and you must send an adverse action notice if the report drives a denial, a higher deposit, or a co-signer demand.
The notice must name the reporting agency, state that it did not make the decision, and explain the applicant’s right to a free copy and to dispute it. Our FCRA compliance guide and the companion walkthrough of the adverse action notice spell out the requirements.
Fair Housing Compliance for Texas Landlords
The Texas Fair Housing Act and the federal Act demand the same discipline: uniform criteria, uniform application, and documentation showing you treated every applicant by the same yardstick. In a state that regulates the process this lightly, the paper trail is your protection.
Publish your criteria before you advertise, screen every applicant against the identical standard, and keep the file. Consistency is far more persuasive than an after-the-fact explanation.
A Compliant Texas Screening Process
Turn the rules into one repeatable sequence. First, publish objective criteria. Second, collect a reasonable, uniform screening fee. Third, get written consent and order the report. Fourth, evaluate every applicant against the identical standard. Fifth, if you decline based on a report, send the adverse action notice promptly.
Income verification is the step landlords most often shortcut; our guide to verifying tenant income shows how to confirm ability to pay without singling anyone out. Run the same steps for every applicant and your file will tell a clean, consistent story.
Common Mistakes That Create Liability
In a permissive state the recurring errors cluster around consistency and the deposit statute. Charging uneven fees invites a complaint. Mishandling the deposit – missing the thirty-day return or failing to itemize – can trigger the section 92.109 penalty of one hundred dollars plus three times the withheld amount plus attorney’s fees. And denying an applicant on a report without the FCRA notice is an avoidable, well-litigated misstep.
One standard, every applicant. Texas hands you the freedom to design your own process – which means the burden of proving it was even-handed sits with you. A single written rubric, used the same way each time, is your strongest defense.
Documentation and Recordkeeping in Texas
Texas leaves the screening process to the landlord, so the file you build is what proves the process was lawful and consistent. Keep the signed authorization for each consumer report, a dated copy of the written criteria you applied, the screening results, and every adverse action notice you sent. When applicants are treated identically and the file shows it, a denied applicant’s complaint has little to stand on.
The deposit rules add their own paperwork. Texas does not start the thirty-day return clock until the tenant surrenders the unit and provides a forwarding address in writing, so log the surrender date and keep the forwarding-address request. Retain the itemized deduction list you delivered, dated move-in and move-out condition records, and repair invoices. Section 92.109’s bad-faith penalty – one hundred dollars plus three times the withheld amount plus attorney’s fees – falls hardest on the landlord who cannot document the deductions.
Set a retention policy and apply it to every file, approved or denied. A consistent multi-year retention of applications, screening results, adverse action notices, surrender records, and deposit accountings gives you the evidence to answer a fair housing inquiry or a deposit suit long after move-out. Keeping the same records for everyone is itself proof of the even-handed treatment the Texas and federal fair housing acts require.
Do
- ✓Publish your written screening criteria before you advertise, and apply them to every applicant.
- ✓Get written authorization before pulling any report, and keep the signed consent on file.
- ✓Send an FCRA adverse action notice on every denial that rests on a consumer report.
- ✓Assess any criminal record case by case, weighing the offense, how recent it is, and safety.
- ✓Handle the security deposit and its return exactly as the state statute requires, and document it.
Avoid
- ✕Charge uneven application fees, or collect a fee with no genuine screening behind it.
- ✕Treat a permissive state as a lawless one – the FCRA and federal fair housing law always apply.
- ✕Apply a blanket ban on any criminal record, which risks a disparate-impact violation.
- ✕Improvise your standards applicant by applicant instead of following one written rubric.
- ✕Skip the deposit paperwork the statute requires, from itemization to any required notices.
Texas Tenant Screening Laws: FAQ
Can a Texas landlord run a background check on an applicant?
Yes. With the applicant’s written authorization you may obtain a consumer report covering credit, rental history, income, and criminal convictions. The federal Fair Credit Reporting Act requires a permissible purpose and consent before any screening report is pulled.
Is there a limit on application fees in Texas?
No. Texas does not cap tenant application or screening fees. Keep the fee reasonable, tie it to the actual cost of screening, and charge it consistently to every applicant.
What is the maximum security deposit in Texas?
Texas does not cap the security deposit. The Texas Property Code requires the landlord to return it within thirty days after the tenant surrenders the unit, with an itemized list of deductions.
What happens if a Texas landlord wrongfully keeps the deposit?
Under Texas Property Code section 92.109, a landlord who acts in bad faith can be liable for one hundred dollars plus three times the portion wrongfully withheld, plus the tenant’s reasonable attorney’s fees.
Is source of income a protected class in Texas?
No. The Texas Fair Housing Act does not list source of income, and Texas law restricts cities from requiring landlords to accept Housing Choice Vouchers. Always confirm the rules in the specific locality.
Can a Texas landlord deny an applicant for a criminal record?
A conviction can be a lawful reason to decline, but blanket bans are risky. HUD’s 2016 guidance warns that a flat no-record policy can create a disparate-impact violation, so use an individualized assessment tied to the offense, how recent it is, and safety.
Does a Texas landlord have to send an adverse action notice?
Yes. If a denial, a higher deposit, or a co-signer requirement rests in any part on a consumer report, the FCRA requires an adverse action notice naming the reporting agency and explaining the right to a free report and to dispute it.
Does Texas regulate the rest of the screening process?
Very little. Texas leaves most of the process to the landlord, so the binding rules are mostly federal – the FCRA for the report and the federal Fair Housing Act for non-discrimination – alongside the deposit rules in the Texas Property Code.
How long should a Texas landlord keep tenant screening records?
Keep applications, signed authorizations, screening results, adverse action notices, and deposit accountings for every applicant – approved or denied – for several years. In Texas, a consistent retention policy is the evidence that you treated every applicant by the same standard if a fair housing or deposit dispute later arises.
When must a Texas landlord send the adverse action notice?
Send it promptly whenever a consumer report contributes to an adverse decision – a denial, a higher deposit, or a co-signer requirement. The FCRA notice must name the reporting agency, state that it did not make the decision, and tell the Texas applicant how to get a free copy of the report and dispute any error.
Related Texas and Screening Guides
- Tenant screening laws by state – compare Texas to the rest of the country.
- Texas security deposit laws – deductions, itemization, and the return deadline.
- Texas eviction notice laws – notice periods and the eviction timeline.
- Texas rent increase laws – notice rules for raising the rent.
- Texas late fee laws – what you can charge for late rent.
- How a tenant background check works – what a report includes.
- Texas habitability laws – your maintenance obligations as a landlord.
Screen Texas Applicants the Compliant Way
Order FCRA-ready credit, criminal, and eviction reports and keep your Texas process consistent from application to decision.
Published by Tenant Screening Background Check · Editorial Team
Established 2004. Our editorial team has spent two decades helping landlords and property managers run lawful, FCRA-compliant tenant screening across all 50 states. We translate state landlord-tenant codes and federal screening rules into processes you can actually follow.
Legal Disclaimer
This article is for general informational purposes only and is not legal advice. Texas and federal laws change, and how they apply depends on your specific facts. Before acting on any screening, fee, deposit, or fair housing question, consult a licensed attorney in Texas. Reading this page does not create an attorney-client relationship.
