Texas separates three sums an applicant may pay before a lease: an application fee, an application deposit and, later, the security deposit — and Subchapter I of Chapter 92 governs the first two. An “application fee” is “a nonrefundable sum of money that is given to the landlord to offset the costs of screening an applicant”; an “application deposit” is a refundable sum “given to the landlord in connection with a rental application and that is refundable to the applicant if the applicant is rejected” (§92.351). A landlord who in bad faith fails to refund an application fee or deposit when the statute requires it owes $100, three times the amount wrongfully retained and attorney’s fees (§92.354). Records are how you prove which sum was which.
The three sums
| Payment | Refundable? | Rule | Record to keep |
|---|---|---|---|
| Application fee | No — unless the landlord rejects the applicant without having made the selection criteria available (§92.3515(e)) | §§92.351, 92.3515 | Receipt stating “non-refundable application fee”; signed criteria acknowledgment |
| Application deposit | Yes if the applicant is rejected; an applicant is deemed rejected if not notified of acceptance within seven days (§92.352) | §§92.351–92.353 | Receipt; date of decision; date and method of refund |
| Security deposit | Refund or itemised accounting within 30 days of surrender | §§92.102–92.109 | Deposit ledger under §92.106 |
The seven-day rule
Under §92.352 an applicant “is deemed rejected” if the landlord does not give notice of acceptance within seven days of a completed application — or of the deposit if no form was furnished — and rejection of one co-applicant rejects all. §92.353 presumes notice given by telephone or by mail postmarked on time. A rejected applicant is owed the application deposit; the calendar entry is the record.
The file per applicant
- Receipt for each sum, labelled with the statutory term.
- The criteria acknowledgment under §92.3515 (without it, a rebuttable presumption arises that the criteria were not made available, and §92.3515(e) then requires the application fee and any application deposit to be refunded on rejection).
- The decision date and the notice method (telephone, mail, e-mail) with time.
- The refund date and instrument for any deposit returned.
- Retention: keep the file for the period your record-retention plan sets for applications; the screening report itself must be disposed of securely (FTC).
Frequently asked questions
Is a rental application fee refundable in Texas?
Ordinarily no — it offsets screening costs — but if the landlord rejects an applicant without having made the selection criteria available under §92.3515, the fee and any application deposit must be refunded (Property Code §92.3515).
What is the difference between an application deposit and a security deposit?
An application deposit is refundable if the applicant is rejected and is governed by Subchapter I; a security deposit secures the lease and follows the 30-day refund rule in Subchapter C (Property Code §§92.351, 92.102).
How long does a landlord have to decide?
Seven days from a completed application; silence is a rejection, and the application deposit must then be refunded (Property Code §92.352).
Sources
Rules change and the right answer can depend on the home, the city, the lease and the timing. These are the official pages this guide relies on; check them before signing, charging a fee, sending a notice or making a legal decision.
- Texas Property Code, Chapter 92 — Residential Tenancies ↗
- FTC — Using consumer reports: what landlords need to know ↗
- Texas State Law Library — Leases ↗
General information for U.S. landlords, with a Texas focus. This guide is not legal, tax or accounting advice. Consult a qualified professional for your situation. Written by the rentalfreelease.com Editorial Team; last reviewed September 19, 2026.