Texas Security Deposit Demand Letter: Recover Your Deposit Under State Law

If you're a Texas renter who didn't get your security deposit back, state law is firmly on your side. Texas Property Code Chapter 92 requires landlords to refund your deposit—or provide an itemized list of deductions—within 30 days after you move out and provide a forwarding address. When landlords act in bad faith, the penalties are steep: up to three times the withheld amount, plus a $100 statutory penalty, plus attorney's fees. A well-drafted demand letter is often all it takes to get your money back without filing in justice court. This page explains exactly how Texas law works, what your landlord must do, and how a properly worded demand letter can pressure a landlord into compliance before you ever step foot in a courtroom.

Texas security deposit law is governed by Chapter 92, Subchapter C of the Texas Property Code (§§ 92.101–92.109). Under § 92.103, a landlord must refund a tenant's security deposit no later than 30 days after the tenant surrenders the premises. The landlord may deduct lawful charges—such as unpaid rent or damages beyond normal wear and tear—but under § 92.104, deductions require a written, itemized description of damages and charges delivered to the tenant's forwarding address.

Importantly, the tenant must give the landlord a written forwarding address for the refund obligation to be enforceable (§ 92.107). However, this doesn't excuse a landlord from documenting deductions if they keep any portion of the deposit.

Texas distinguishes between ordinary withholding and bad faith withholding. Under § 92.109(a), a landlord who in bad faith retains a security deposit is liable for $100, three times the wrongfully withheld portion, and the tenant's reasonable attorney's fees. Under § 92.109(b), a landlord who in bad faith fails to provide a written itemized list of deductions forfeits the right to keep any of the deposit and must return all of it, plus attorney's fees.

The statute also creates a presumption: under § 92.109(d), a landlord who fails to return the deposit or deliver an itemized list within 30 days is presumed to have acted in bad faith. This presumption shifts the burden to the landlord to prove their conduct was reasonable.

"Normal wear and tear" is specifically defined in § 92.001(4) as deterioration from intended use, excluding deterioration from negligence, carelessness, accident, or abuse. Landlords cannot lawfully charge tenants for routine repainting, minor carpet wear, or small nail holes from hanging pictures.

A Texas security deposit demand letter works because it triggers the bad-faith presumption clock and creates a clear paper trail. Once 30 days have passed since you surrendered the property and provided a written forwarding address, the law presumes the landlord acted in bad faith if they haven't returned your deposit or sent an itemized list. Your demand letter puts the landlord on notice that you know your rights under Texas Property Code § 92.109 and are prepared to seek the statutory penalties.

An effective demand letter should: (1) identify the rental property and lease dates; (2) confirm the date you surrendered the premises and provided your forwarding address; (3) state the deposit amount; (4) cite Texas Property Code §§ 92.103, 92.104, and 92.109; (5) demand return of the full deposit or a lawful itemized list within a reasonable time (typically 7–10 days); and (6) warn that failure to comply will result in a justice court lawsuit seeking three times the withheld amount, the $100 penalty, and attorney's fees.

Send the letter by certified mail, return receipt requested, so you have proof of delivery. Keep a copy for your records along with photographs of the unit's condition at move-out, your move-in inspection report, and any communications with the landlord.

Many Texas landlords settle once they receive a demand letter referencing § 92.109. The threat of paying triple damages plus attorney's fees usually outweighs whatever they hoped to deduct. Even if the landlord ignores you, the letter strengthens your case in justice court by documenting your good-faith effort to resolve the dispute.

Texas justice courts (small claims) handle security deposit disputes up to $20,000, exclusive of statutory interest, court costs, and attorney's fees. Filing fees typically range from $50 to $75 depending on the county. Service of process adds approximately $75–$100. You can file in the precinct where the property is located or where the landlord resides. The statute of limitations for security deposit claims under the Texas Property Code is four years from the date of breach, though acting promptly preserves evidence and witness availability. Texas justice courts allow representation by non-attorneys, and proceedings are designed to be accessible to self-represented parties. After judgment, you may need to pursue collection through abstracts of judgment or wage garnishment, though Texas heavily restricts wage garnishment.