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TEXAS LANDLORD GUIDE

Handling cash rent payments

Cash is difficult to trace without an immediate receipt and disciplined deposit process. A clear audit trail protects both sides.

Cash rent is lawful and, unless the written lease requires a traceable instrument, must be accepted — Property Code §92.011 says so and adds two duties: “provide the tenant with a written receipt” and “enter the payment date and amount in a record book maintained by the landlord.” The penalty for ignoring either is the greater of one month’s rent or $500 per violation plus attorney’s fees. The controls below exist to make the statute automatic and to leave a bank trail for every note.

Five controls

CASH CONTROLS FOR A SMALL LANDLORD
ControlWhat it meansStatute or purpose
Receipt at the counterA two-part numbered receipt book; the tenant leaves with the top copy§92.011(b)(1)
Record book same dayDate, amount, tenant, period — the ledger row§92.011(b)(2)
Deposit within one business dayThe whole amount, in one deposit, referenced to the receipt numberBank trail; income substantiation (IRS)
Two people or two recordsWhere an agent collects, the agent’s receipt log is reconciled by the owner monthlyPrevents skimming
Written place and hoursThe lease names where cash may be paid and whenAvoids “I tried to pay” disputes

Declining cash lawfully

If you would rather not handle cash, the lease must say that rent is payable “by check, money order, or other traceable or negotiable instrument” — the exact condition §92.011(a) sets. A verbal or e-mailed “no cash” rule does not meet it, and refusing a timely cash tender under such a rule is a violation.

The receipt and the notice

Because a cash receipt is the tenant’s only proof, an error on it — the wrong month, an amount that looks like payment in full — becomes the tenant’s evidence in an eviction. Write the period and any remaining balance on every receipt, and keep the carbon with the ledger.

Frequently asked questions

Must a Texas landlord accept cash rent?

Yes, when timely, unless the written lease requires a check, money order or other traceable or negotiable instrument (Property Code §92.011).

What must a landlord do on receiving cash?

Give a written receipt and record the date and amount in a record book; the penalty for a violation is the greater of one month’s rent or $500 plus attorney’s fees (Property Code §92.011).

Can a manager collect cash for the owner?

Yes, with the same receipt and record duties; reconcile the agent’s receipts to deposits monthly.

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.

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.

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