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 – but not as lightly as most guides claim. The Texas Property Code sets the rules for the security deposit, and Subchapter I of Chapter 92 (sections 92.351 to 92.355) regulates the application stage directly: section 92.3515 requires printed notice of your tenant selection criteria and the grounds for denial at the time you hand an applicant a rental application, and section 92.352 deems an applicant rejected if you do not give notice of acceptance by the seventh day. Beyond that the federal Fair Credit Reporting Act and fair housing law are the rulebook – and a written, consistent process is 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 on or before the thirtieth day after the tenant surrenders the premises (section 92.103), with the written description and itemized list of deductions required by section 92.104(c), and the landlord’s obligation is suspended until the tenant gives a written forwarding address (section 92.107).
- 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 Local Government Code section 250.007(a) bars cities and counties from compelling voucher acceptance – except for military veterans, whom section 250.007(b) expressly leaves protectable by local ordinance.
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. It is not, however, unregulated. Section 92.3515(e) of the Property Code requires you to return the application fee and any application deposit if you reject an applicant without having made the tenant selection criteria notice available, and section 92.354 makes a landlord who in bad faith fails to refund an application fee or deposit liable for one hundred dollars, three times the amount wrongfully retained, and the applicant’s reasonable attorney’s fees. Section 92.355 voids any provision of a rental application purporting to waive those duties. Beyond the statute, 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 is Chapter 301 of the Texas Property Code, enforced by the Civil Rights Division of the Texas Workforce Commission. It tracks the federal Fair Housing Act, prohibiting discrimination on the basis of race, color, religion, sex, national origin, familial status (section 301.021) and disability (section 301.025). Texas does not add source of income as a protected class. Whether the statutory word “sex” also covers sexual orientation and gender identity is now an open federal question. HUD withdrew its February 9, 2021 memorandum applying Bostock v. Clayton County to the Fair Housing Act effective September 25, 2025 (Docket FR-6617-N-01, 91 Federal Register 44867, published July 17, 2026), and withdrew the February 11, 2021 memorandum implementing Executive Order 13988 effective September 17, 2025 (Docket FR-6571-N-01). The statutory text of the Act is unchanged and Bostock was a Title VII employment case, so the withdrawal removes the interpretation HUD had stated without settling the question the other way. No successor has been issued. Do not read the withdrawal as permission: the exposure moved from HUD’s enforcement desk to the courtroom, and many states and localities protect sexual orientation and gender identity expressly, which is the clearer and more durable footing where it exists — check your state and city.
Chapter 301 also carries exemptions the federal Act mirrors, and a small Texas landlord may fall inside them. Section 301.041(a)(1) exempts the sale or rental of a single-family house by an owner who does not own, and holds no interest in the proceeds of, more than three single-family houses at any one time, provided the house is rented without a broker, agent or salesperson licensed under Occupations Code chapter 1101 and without any person in the business of selling or renting dwellings, and without a notice or advertisement prohibited by section 301.022. Section 301.041(a)(2) exempts rooms or units in an owner-occupied dwelling containing living quarters for not more than four families living independently. Section 301.041(d) then defines who is “in the business”, capturing anyone who owns a dwelling occupied by five or more families or who has participated in three or more sale or rental transactions in the preceding year. Section 301.042 adds religious-organization, private-club and appraisal exemptions. Do not assume an exemption without reading section 301.041 against your own portfolio – and note that the exemptions in Chapter 301 do not switch off the federal Fair Housing Act’s advertising prohibition or the FCRA.
Texas goes a step further than most permissive states: Local Government Code section 250.007(a) bars a municipality or county from adopting or enforcing an ordinance that prohibits a landlord from refusing to rent because the applicant’s lawful source of income to pay rent includes funding from a federal housing assistance program. There is a carve-out landlords miss – section 250.007(b) expressly preserves an ordinance prohibiting refusal to rent to a military veteran because of the veteran’s lawful source of income, and section 250.007(c) leaves cities free to run voluntary incentive or density-bonus programmes encouraging voucher acceptance. So a general citywide voucher mandate does not bind a Texas landlord, but a veteran-specific local source-of-income ordinance can. 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. Do not cite HUD’s 2016 criminal-records guidance for that point: it was withdrawn effective September 25, 2025 by the Federal Register Notice of the Withdrawal of OGC Guidance Documents, Docket No. FR-6617-N-01, 91 FR 44867, and HUD has issued nothing to replace it. What carries the point instead is the Fair Housing Act itself, the Supreme Court’s decision in Texas Department of Housing and Community Affairs v. Inclusive Communities Project, 576 U.S. 519 (2015), and HUD’s discriminatory-effects rule at 24 CFR section 100.500, reinstated effective May 1, 2023 – so a flat ban can still violate the federal Fair Housing Act even without intent, because conviction records fall unevenly across racial groups. Read section 100.500 for what it is: a burden-shifting litigation standard under which the landlord carries the burden of proving the practice necessary to a substantial, legitimate, nondiscriminatory interest that no less discriminatory practice would serve. It imposes no individualized-assessment step, no pre-denial notice and no waiting period – that step came from the withdrawn guidance, which never carried the force of law in the first place. An individualized assessment tied to the offense, how recent it is, and safety is therefore the strongest defensible practice and the evidence that defends the denial, not a federal command. Section 100.500 is also contested: HUD has proposed to remove it and reopened the comment period until October 9, 2026 (Docket No. FR-6540-P-01, 91 FR 1475, as supplemented by Docket No. FR-6540-P-02, 91 FR 51416). A proposal is not a rule, and nothing has changed yet.
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. Under section 92.103(a) the thirty-day clock runs from the date the tenant surrenders the premises; what the forwarding address changes is the obligation, not the clock – section 92.107(a) provides that the landlord is not obligated to return the deposit or give a written description of deductions until the tenant gives the landlord a written statement of the tenant’s forwarding address, while section 92.107(b) makes clear the tenant does not forfeit the right to a refund by failing to give one. 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. It does regulate refunds: under Property Code section 92.3515(e) you must return the application fee and any application deposit if you reject an applicant without having made the tenant selection criteria notice available, and section 92.354 adds one hundred dollars, three times the amount wrongfully retained and the applicant’s attorney’s fees where the failure to refund was in bad faith. Keep the fee tied 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, Property Code chapter 301, does not list source of income, and Local Government Code section 250.007(a) bars a municipality or county from enforcing an ordinance that prohibits a landlord from refusing to rent because the applicant’s income includes federal housing assistance. Section 250.007(b) carves out military veterans, so a veteran-specific local source-of-income ordinance remains enforceable. 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 a blanket ban is the risky part. Do not rely on HUD’s 2016 criminal-records guidance for that warning: it was withdrawn effective September 25, 2025 (Docket No. FR-6617-N-01, 91 FR 44867) and HUD has issued nothing to replace it. The exposure now runs through the Fair Housing Act and HUD’s discriminatory-effects rule at 24 CFR section 100.500, reinstated effective May 1, 2023, under which a landlord defending a flat no-record policy carries the burden of proving it necessary to a substantial, legitimate, nondiscriminatory interest that no less discriminatory practice would serve. Section 100.500 is a burden-shifting litigation standard and imposes no individualized-assessment step, no pre-denial notice and no waiting period – that idea came from the withdrawn guidance, which never carried the force of law in the first place. An individualized assessment tied to the offense, how recent it is, and safety is therefore prudent risk management and the evidence that defends the decision, not compliance with a federal requirement. HUD has proposed to remove section 100.500 and reopened the comment period until October 9, 2026 (Docket No. FR-6540-P-01, 91 FR 1475, as supplemented by Docket No. FR-6540-P-02, 91 FR 51416); a proposal is not a rule and the regulation is in force today.
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?
Less than most guides say. Subchapter I of Property Code chapter 92 governs the application stage: section 92.3515 requires printed notice of the tenant selection criteria and the grounds for denial at the time the applicant is given a rental application, with a signed acknowledgment and a refund of the application fee and deposit if you reject an applicant without having made that notice available; section 92.352 deems an applicant rejected if you do not give notice of acceptance by the seventh day; and section 92.354 penalises a bad-faith failure to refund. Everything after that is largely federal – the FCRA for the report and the 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.
