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TEXAS LANDLORD GUIDE

A deposit reconciliation workflow

A reliable refund process starts before move-out: retain the initial condition record, track keys and obtain final invoices promptly.

Reconciling a deposit is a five-step routine that starts weeks before surrender and ends with a postmarked envelope: confirm what is held, fix the surrender date, inspect against the move-in record, price the deductions the tenant is liable for, and send the balance with the itemised list within 30 days of surrender to the forwarding address. Each step maps to a section of Property Code Chapter 92: records (§92.106), surrender and the clock (§92.103), deductions and the list (§92.104), the forwarding address (§92.107) and the presumption of timely mailing (§92.1041).

The workflow

DEPOSIT RECONCILIATION — STEPS AND EVIDENCE
StepWhenDoEvidence
1. Confirm the deposit30 days before the endCheck the ledger: amount, date received, any pet deposit included, any interest the lease promised§92.106 record
2. Fix surrenderMove-out daySign a key receipt with the date; record meter readingsKey receipt; §92.103 clock starts
3. InspectSame day or nextWalk the unit with the move-in record; photograph the same viewsMove-in/move-out records
4. Price the deductionsWithin a weekOnly charges the tenant is liable for; never normal wear; invoices or estimates per item§92.104
5. Account and refundPostmarked by day 30 after surrender and forwarding addressItemised list + balance; e-mail copy if §92.113 appliesPostmark; e-mail

Two decisions to make in writing

First, whether unpaid rent exists at surrender: if it does and the amount is not disputed, §92.104(c) excuses the itemised list — but sending it anyway is cheaper than arguing about “controversy.” Second, whether the deposit is exhausted: if deductions exceed it, the accounting shows a balance due and the claim proceeds separately; do not net it against anything the statute does not allow.

What breaks the workflow

  • Waiting for the tenant’s complaint before inspecting — the photographs must be dated at surrender.
  • Deducting for wear because the unit “needs freshening”; §92.104(b) forbids it.
  • Mailing on day 31: the presumption in §92.1041 attaches to the postmark, and §92.109(d) presumes bad faith after day 30.
  • Mailing to the old address: §92.107 makes the written forwarding address the trigger; without one, hold the refund and document the request.

Frequently asked questions

When does the Texas deposit refund deadline run from?

From the date the tenant surrenders the premises — 30 days — provided a written forwarding address has been given (Property Code §§92.103, 92.107).

What must the accounting contain?

The balance of the deposit and a written description and itemised list of all deductions, each a charge the tenant is legally liable for (Property Code §92.104).

Is mailing on the 30th day enough?

Yes — a refund or accounting placed in the U.S. mail and postmarked on or before the required date is presumed timely (Property Code §92.1041).

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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