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Security Deposits: What Owners Can (and Can’t) Deduct

🏡 💰 Security deposits often spark confusion — and sometimes conflict — between owners and residents. Understanding what’s allowed (and what’s not) makes move-outs smoother, protects everyone legally, and builds trust.

At Real Property Management Ideal, we follow Texas law to the letter. Here’s what every owner and resident should know. 👇

 

✅ What Owners Can Deduct

Owners can use the deposit to cover actual, documented costs beyond normal wear and tear:

  • 🧼 Excessive Cleaning: For properties left unreasonably dirty (e.g., carpet stains, grease buildup).
  • 🛠️ Damage Repairs: Broken windows, holes in walls, damaged flooring.
  • 🚰 Unpaid Utilities: If they were the resident’s responsibility.
  • 🔑 Missing Items or Keys: Lost garage remotes, gate cards, or keys.

 

❌ What Owners Cannot Deduct

The deposit isn’t a catch-all. Here’s what’s off-limits:

  • 🪑 Normal Wear & Tear: Faded paint, small nail holes, worn carpet from everyday use.
  • 🧾 Future Repairs: Anything that hasn’t been fixed yet can’t be charged.
  • 💼 Regular Upgrades: Replacing appliances or remodeling for value increase.

 

📸 Why Documentation is Everything

Move-in and move-out inspections (with time-stamped photos) are the owner’s best defense.
They:

  • Provide clear “before and after” evidence
  • Avoid “he said, she said” disputes
  • Build transparency and trust with residents

 

⏳ Texas Timeline to Return Deposits

  • Owners must return the deposit within 30 days of move-out.
  • Any deductions must be itemized in writing and sent to the resident.

Failing to follow these steps can lead to penalties — another reason to stay organized.

 

🤝 The Bottom Line

Security deposits aren’t about making a profit — they’re about protecting your investment and keeping things fair for everyone.
With the right process, documentation, and compliance, move-outs don’t have to be stressful.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

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