Security Deposit Demand Letter - Texas

SECURITY DEPOSIT DEMAND LETTER

STATE OF TEXAS — TEX. PROP. CODE CH. 92, SUBCH. C

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL

[__/__/____]

[LANDLORD/PROPERTY MANAGER FULL LEGAL NAME]
[LANDLORD/PROPERTY MANAGER ADDRESS]
[CITY, TX ZIP]

Re: FORMAL DEMAND — RETURN OF SECURITY DEPOSIT UNDER TEX. PROP. CODE § 92.109
Former Tenant: [TENANT FULL NAME]
Rental Property Address: [FULL RENTAL ADDRESS, CITY, TX ZIP]
Tenancy Dates: [__/__/____] through [__/__/____]
Security Deposit Amount: $[________________________________]
Written Forwarding Address Delivered: [__/__/____] (triggering 30-day statutory clock)
30-Day Statutory Deadline Expired: [__/__/____]

Dear [LANDLORD/PROPERTY MANAGER NAME]:

This law firm represents [TENANT FULL NAME] ("Tenant" or "Client") with respect to your failure to comply with Texas Property Code Chapter 92, Subchapter C regarding the security deposit for the above-referenced premises. Your non-compliance has exposed you to the full penalty structure of Tex. Prop. Code § 92.109, including a $100 statutory penalty, three times the wrongfully withheld amount, and attorney's fees. This letter constitutes our Client's formal pre-litigation demand and the DTPA pre-suit notice required under Tex. Bus. & Com. Code § 17.505 where applicable.

I. TEXAS SECURITY DEPOSIT LAW — GOVERNING FRAMEWORK

A. The Statutory Scheme: Tex. Prop. Code §§ 92.101–92.111

Texas imposes a self-executing penalty structure on landlords who fail to comply with security deposit obligations. The statute is deliberately punitive: it is designed to deter bad-faith retention and to make litigation economically feasible for tenants even on small deposit amounts.

B. The 30-Day Return Deadline — § 92.103

Tex. Prop. Code § 92.103(a) requires a landlord to return the security deposit to the tenant on or before the 30th day after the date the tenant surrenders the premises AND the landlord receives the tenant's written statement of the tenant's forwarding address.

Critical TX Distinction — Both Conditions Must Be Met: Unlike some states that start the clock at move-out alone, Texas requires written forwarding address delivery as a separate, independent trigger. The 30-day clock does NOT begin until both conditions are satisfied.

Forwarding Address Delivered: Our Client provided a written forwarding address to you on [__/__/____] by [☐ certified mail ☐ hand delivery ☐ email to [EMAIL] ☐ text message to [NUMBER] ☐ other: [________________________________]].

Premises Surrendered: Our Client surrendered possession and returned all keys on [__/__/____].

Statutory Deadline: Both conditions were therefore satisfied no later than [__/__/____], making your return deadline [__/__/____] (30 days later).

Days Elapsed Since Deadline: As of the date of this letter, [____] days have passed since your statutory deadline. You are in violation of § 92.103.

C. Itemized Statement Requirement — § 92.104(c)

Under Tex. Prop. Code § 92.104(c), if a landlord retains all or part of the deposit, the landlord must give the tenant the balance of the deposit (if any) together with a written description AND itemized list of all deductions. (The landlord is excused from providing the description and itemized list only if the tenant owes rent at surrender and there is no controversy over the amount of rent owed. § 92.104(c)(1)–(2).) The itemized statement should:

1. Describe each item of damage for which a deduction is claimed;
2. State the dollar amount of each deduction; and
3. State the basis for the landlord's liability for each charge.

A blanket statement such as "cleaning" or "repairs" without itemization does not satisfy § 92.104(c).

D. Permissible Deductions — § 92.104

A landlord may deduct from the security deposit ONLY:

• Amounts for which the tenant is legally liable under the lease or applicable law; OR
• Actual damages to the premises (beyond normal wear and tear) caused by the tenant

Normal wear and tear is EXPRESSLY non-deductible. Texas courts interpret "normal wear and tear" broadly to include: minor wall scuffs, small nail holes, worn carpet in high-traffic areas, faded paint from sunlight, and deterioration from ordinary daily use.

E. No-Deduction Rule Where No Itemization — § 92.109(b)

Under Tex. Prop. Code § 92.109(b), a landlord who in bad faith fails to provide the required written description and itemized list of deductions (1) forfeits the right to withhold any portion of the deposit or to bring suit against the tenant for damages to the premises, even if actual damages existed, and (2) is liable for the tenant's reasonable attorney's fees. Because § 92.109(d) presumes bad faith once the landlord misses the 30th-day deadline, a landlord who never provides the itemized statement within 30 days is presumptively subject to this forfeiture.

F. Bad Faith Penalty — § 92.109

Tex. Prop. Code § 92.109 imposes the following penalties on a landlord who in bad faith retains a security deposit or fails to furnish an itemized statement:

§ 92.109(d) Presumption: A landlord who fails to return the deposit or provide the itemized statement by the 30th day is presumed to have acted in bad faith. This is a rebuttable presumption that shifts the burden of proof to the landlord.

G. No Statutory Deposit Limit; No Interest Required

Texas law imposes no statutory cap on security deposit amounts and does not require landlords to hold deposits in separate accounts or pay interest on deposits. No rent control applies in Texas — state law expressly preempts local rent control ordinances.

H. Venue — Texas Justice Court

Claims for security deposit return and § 92.109 penalties may be filed in Texas Justice Court (small claims) for amounts up to $20,000 under Tex. R. Civ. P. 500 et seq. Justice Court is a cost-effective, streamlined forum ideally suited for deposit disputes.

II. TENANCY FACTS

A. Tenancy Record

B. Move-Out and Forwarding Address Documentation

Notice to Vacate:

• Date Written Notice Given to Landlord: [__/__/____]
• Notice Period Provided: [____] days
• Method: ☐ Hand-delivered ☐ Certified mail ☐ Email ☐ Text

Move-Out:

• Date Keys/Access Devices Returned: [__/__/____]
• Method of Key Return: ☐ In person to [________________________________] ☐ Dropped in key box ☐ Mailed ☐ Other: [________________________________]

Written Forwarding Address:

• Date Forwarding Address Provided to Landlord: [__/__/____]
• Method of Delivery: ☐ Certified mail ☐ Hand delivery ☐ Email ☐ Text message ☐ Written on move-out form
• Forwarding Address Provided: [________________________________]

Calculated 30-Day Deadline: [__/__/____]

Move-Out Inspection:

• ☐ Tenant requested joint inspection — landlord [☐ agreed ☐ refused ☐ did not respond]
• ☐ Landlord conducted unilateral inspection on [__/__/____]
• ☐ No inspection conducted

C. Condition of Premises at Move-Out

☐ Clean and in good repair — Premises left in substantially the same condition as received, reasonable wear and tear excepted.

☐ Professionally cleaned — Tenant hired [________________________________] on [__/__/____]; receipt enclosed.

☐ No damage beyond normal wear and tear — All changes to the premises are the result of ordinary use over the tenancy.

☐ Move-in/move-out photographic documentation — Dated photographs document the condition at both move-in and move-out and are in counsel's possession.

☐ Pre-existing conditions documented — The following conditions existed at move-in and were noted on the move-in checklist or otherwise acknowledged: [________________________________]

III. LANDLORD'S VIOLATIONS

You have failed to comply with the Texas Property Code in the following respects:

☐ VIOLATION 1 — Failure to Return Deposit (§ 92.103): You have not returned any portion of the $[________________] deposit as of the date of this letter, [____] days after the statutory deadline of [__/__/____].

☐ VIOLATION 2 — No Itemized Statement Provided (§ 92.104(c)): You failed to provide the written description and itemized list of deductions required by § 92.104(c) within 30 days. Under § 92.109(b), a bad-faith failure to provide the itemization forfeits your right to withhold any portion of the deposit or to sue for damages, regardless of actual damages; bad faith is presumed under § 92.109(d) once the 30-day deadline passes.

☐ VIOLATION 3 — Partial Return Without Adequate Itemization (§ 92.104(c)): You returned $[________________] on [__/__/____] but failed to provide the required written description and itemized list of deductions explaining the basis for retaining the remaining $[________________].

☐ VIOLATION 4 — Improper Deductions (§ 92.104): Your itemization includes impermissible deductions:

• ☐ Normal wear and tear (e.g., [________________________________])
• ☐ Pre-existing conditions (e.g., [________________________________])
• ☐ Deductions exceeding actual documented cost
• ☐ Charges not authorized by the lease or Texas law
• ☐ Other: [________________________________]

☐ VIOLATION 5 — Bad Faith Retention (§ 92.109): Your conduct demonstrates bad faith, including: [________________________________]

IV. NORMAL WEAR AND TEAR — TEXAS STANDARDS

Texas courts and the Texas Property Code distinguish between compensable "damage" and non-compensable "normal wear and tear." The following items cannot be charged against the deposit:

☐ Minor scuff marks or shallow scratches on walls from furniture placement
☐ Small nail holes from picture hanging (standard residential use)
☐ Worn or matted carpet in high-traffic pathways (hallways, living areas)
☐ Faded or yellowed paint from sunlight exposure
☐ Minor wear on door hardware, hinges, locks from normal daily use
☐ Worn or discolored grout in bathrooms and kitchens
☐ Dust, minor grime requiring standard cleaning between tenants
☐ Faded or slightly warped mini-blinds from sun and normal use
☐ Worn finish on bathroom fixtures from regular use
☐ Other items constituting deterioration from intended occupancy: [________________________________]

V. DAMAGES AND DEMAND

A. Summary of All Deposits Due

B. Statutory Penalties Under § 92.109 (If Bad Faith Shown or Presumed)

Note: The § 92.109 penalties apply to the portion of the deposit retained in bad faith. Where the landlord provides no itemization at all within 30 days, the entire retained amount is presumed to be wrongfully withheld in bad faith.

C. Total Settlement Demand

Total amount demanded to resolve this matter without litigation: $[________________________________]

VI. EVIDENCE IN OUR POSSESSION

The following evidence has been preserved and is available for litigation:

☐ Original signed lease agreement and all addenda
☐ Cancelled check, money order, or bank record evidencing deposit payment
☐ Move-in inspection checklist / condition report (signed or unsigned)
☐ Move-in photographs (dated [__/__/____])
☐ Move-out photographs (dated [__/__/____])
☐ Move-out video walkthrough (dated [__/__/____])
☐ Written notice to vacate (delivered [__/__/____])
☐ Written forwarding address (delivered [__/__/____]; certified mail receipt no. [________________________________])
☐ Key return documentation (dated [__/__/____])
☐ Professional cleaning receipt — [________________________________], $[________________]
☐ Landlord's itemized statement (received [__/__/____]) — reviewed and challenged herein
☐ Correspondence between parties regarding deposit
☐ Witness statements regarding condition of premises
☐ Final utility bills showing service through move-out
☐ Prior written communications documenting landlord's bad faith
☐ Other: [________________________________]

VII. FORMAL DEMAND

NOTICE IS HEREBY GIVEN pursuant to Tex. Prop. Code § 92.109 and applicable Texas law that our Client hereby demands the following, to be satisfied within fourteen (14) days of the date of this letter:

1. Full Return of Deposit: Immediate payment of $[________________________________] representing the full unreturned deposit balance.

2. Total Settlement Payment (Including Statutory Penalties): If you dispute that a full refund is owed, our Client demands payment of the total statutory damages set forth in Section V.B, totaling $[________________________________].

3. Method of Payment: Certified check or money order payable to [TENANT FULL NAME], delivered to:

[LAW FIRM NAME]
[ADDRESS]
[CITY, TX ZIP]
Attn: [ATTORNEY NAME] — Re: [TENANT NAME] Security Deposit

VIII. CONSEQUENCES OF NON-COMPLIANCE

If you fail to comply with this demand within fourteen (14) days, we are prepared and authorized to:

1. File in Texas Justice Court (small claims, up to $20,000) or County/District Court for:

• Return of the full deposit
• $100 statutory penalty under § 92.109
• Three times the wrongfully withheld amount under § 92.109
• Reasonable attorney's fees and court costs

2. File DTPA Claims under Tex. Bus. & Com. Code § 17.41 et seq. for deceptive trade practices related to the withholding, including treble damages and additional attorney's fees, if applicable.

3. Report to Regulatory Agencies:

• Texas Attorney General — Consumer Protection Division (512-463-2100)
• Texas Department of Housing and Community Affairs
• Local housing authority and code enforcement

4. Pursue All Collection Remedies upon obtaining judgment, including abstract of judgment, garnishment, and levy on property.

IX. TEXAS DTPA PRE-SUIT NOTICE

THIS LETTER ALSO CONSTITUTES PRE-SUIT NOTICE under the Texas Deceptive Trade Practices-Consumer Protection Act, Tex. Bus. & Com. Code § 17.505, to the extent our Client asserts DTPA claims arising from your retention of the security deposit. You have sixty (60) days from receipt of this letter to tender a written offer of settlement. Failure to tender a reasonable settlement offer within that period will result in the filing of DTPA claims without further notice.

X. RESPONSE REQUIRED

Please respond in writing within fourteen (14) days with:

1. Your position on the amount owed;
2. Any documentation supporting claimed deductions (with receipts, invoices, or contractor estimates);
3. Full payment or a good-faith settlement offer.

Failure to respond will result in the filing of suit without further notice.

XI. RESERVATION OF RIGHTS

This letter is written without prejudice to any and all rights, claims, and remedies available to our Client under the Texas Property Code, Texas Deceptive Trade Practices Act, common law, or any other applicable authority, all of which are expressly reserved.

Respectfully submitted,

[LAW FIRM NAME]

By: [________________________________]
[ATTORNEY NAME]
State Bar of Texas No. [________________________________]
[ADDRESS]
[CITY, TX ZIP]
[TELEPHONE]
[EMAIL]

Attorneys for [TENANT FULL NAME]

ENCLOSURES:
☐ Copy of lease agreement
☐ Copy of security deposit payment receipt
☐ Written forwarding address and proof of delivery
☐ Move-in/move-out photographs
☐ Copy of notice to vacate
☐ Landlord's itemized statement (if any)
☐ Cleaning and repair receipts
☐ Move-out inspection checklist
☐ Authorization to represent

cc: [TENANT NAME], c/o [LAW FIRM NAME]
[PROPERTY MANAGEMENT COMPANY, if separate from landlord]
[PROPERTY OWNER, if different from addressee]
Client File

TEXAS SECURITY DEPOSIT QUICK REFERENCE

TEXAS PRACTICE NOTES FOR ATTORNEYS

☐ Forwarding Address Is the Key: The § 92.103 clock does NOT start at move-out alone. Document exactly when and how the tenant delivered the written forwarding address. If delivered by certified mail, attach the USPS tracking confirmation.

☐ Presumption Is Powerful: Once 30 days pass without return or itemization, § 92.109(d) creates a rebuttable presumption of bad faith. The landlord bears the burden of rebutting it. Most landlords cannot do so.

☐ No Itemization = No Defense: If the landlord never provided the § 92.104(c) written description and itemized list within 30 days, a bad-faith landlord forfeits the right to withhold any portion of the deposit or to sue for damages regardless of actual damage. Cite § 92.109(b) (with the § 92.109(d) bad-faith presumption) prominently.

☐ Calculate Full Treble Exposure: A $2,000 deposit wrongfully withheld in bad faith yields $6,000 in punitive damages + $100 + attorney's fees. Make sure the demand letter communicates this exposure clearly to motivate settlement.

☐ Justice Court Strategy: For deposits under $20,000, Justice Court under Tex. R. Civ. P. 500 et seq. is fast, inexpensive, and tenant-friendly. File in the precinct where the rental property is located.

☐ Pet Deposits: Texas does not separately regulate pet deposits. They are subject to the same § 92.109 penalty structure as the main security deposit.

☐ DTPA Layer: Intentional retention of a deposit to coerce the tenant or retaliate can constitute a deceptive trade practice under Tex. Bus. & Com. Code § 17.46. This adds treble damages and attorney's fees on top of the § 92.109 penalties.

☐ No Rent Control: Texas Local Government Code § 214.902 preempts local rent control ordinances statewide.

☐ Military Tenants: Service members who receive qualifying orders may terminate leases under the Servicemembers Civil Relief Act, 50 U.S.C. § 3955. Their deposits must be returned with full compliance.

☐ Document Everything in Writing: Texas courts have consistently held that verbal communications about forwarding addresses or move-out conditions are inadequate to trigger the statutory timeline or to justify deductions.

SOURCES AND REFERENCES

• Texas Property Code Chapter 92, Subchapter C: https://statutes.capitol.texas.gov/Docs/PR/htm/PR.92.htm
• Tex. Prop. Code § 92.103 (return deadline): https://statutes.capitol.texas.gov/SOTWDocs/PR/htm/PR.92.htm#92.103
• Tex. Prop. Code § 92.109 (bad faith penalties): https://statutes.capitol.texas.gov/SOTWDocs/PR/htm/PR.92.htm#92.109
• Tex. Prop. Code § 92.104 (retention; accounting — written description and itemized list of deductions): https://statutes.capitol.texas.gov/SOTWDocs/PR/htm/PR.92.htm#92.104
• Texas Justice Court Rules (Tex. R. Civ. P. 500 et seq.): https://www.txcourts.gov/rules-forms/
• Texas DTPA (Tex. Bus. & Com. Code § 17.41): https://statutes.capitol.texas.gov/Docs/BC/htm/BC.17.htm
• Texas Attorney General Consumer Protection: https://www.texasattorneygeneral.gov/consumer-protection
• Texas Tenant Advisor (Texas Legal Services Center): https://texastenantadvisor.com/

This template is for informational purposes only and does not constitute legal advice. Texas Property Code deadlines are strictly enforced. Consult a licensed Texas attorney before use.