Clear Rules for Handling Security Deposits in Greater Austin

Most deposit fights are bad notes, not bad intent. If you cannot show the condition at move-in, you will struggle to show what changed. Texas generally requires an itemized description of deductions and the balance refunded within 30 days after the resident surrenders the property. The statute controls. This article does not.

This is general information from a Round Rock property manager, not legal, tax, or financial advice. Texas rules change. Use a Texas attorney or CPA for your property, and call our office if we manage the house.

What we keep in the file

• The lease and any pet addendum, with the deposit amount
• Move-in photos and a condition form signed or sent at the start
• Repair invoices that match the deductions, not a round number
• Normal wear called out as normal wear. Paint that aged is not a full repaint bill.
• The refund or the itemization sent on time, and a copy kept

On homes we manage, deposit accounting is part of the move-out. Owners who self-manage can use the same list. If you want us to take the next lease, start at owner resources.

Where deposit fights actually start

The clock and the deductions are the two places owners get hurt. Texas generally expects an itemized description of deductions and the balance refunded within 30 days after the resident surrenders the property. The statute controls, and a blog cannot replace it. What we can say from the files we see is that owners lose the argument when move-in photos do not exist, when the deduction is a round number with no invoice, or when the refund goes out late because nobody owned the task. A forwarding address, or a documented attempt to send the itemization, belongs in the file with the date.

Normal wear is not a bill. Paint that aged, carpet that flattened in the traffic lanes, and a few nail holes are not a full repaint and a full flooring replacement. Damage is a hole, a stain, a missing appliance, or a pet smell that a cleaner had to treat. Pet deposits and pet addenda have to match what you deduct. If the lease allowed the pet and you took a pet deposit, the accounting should show that amount separately from the security deposit so the resident can see the math. Do not mix them into one unexplained check.

On homes we manage, the move-out inspection is compared with the move-in record before anyone talks about a number. Invoices are attached. The itemization goes out on time, and a copy stays in AppFolio. Owners who self-manage can use the same list. If you want the next lease handled, including the deposit, start with owner resources or a rental analysis. Do not withhold a deposit because you are angry about how the resident left. Withhold what you can document, refund the rest, and keep the paper.