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TEXAS LANDLORD GUIDE

Pet deposit or pet fee: what should the lease say?

A refundable pet deposit and a nonrefundable pet fee have different accounting consequences. Assistance animal requests require individual fair housing treatment.

A refundable pet deposit is a security deposit; a non-refundable pet fee is income. Under Property Code §92.102 a security deposit is “any advance of money, other than a rental application deposit or an advance payment of rent, that is intended primarily to secure performance under a lease,” so a “pet deposit” held against animal damage falls inside Subchapter C: refund or itemised accounting within 30 days of surrender (§§92.103–92.104), records (§92.106) and the bad-faith penalties (§92.109). A fee described as non-refundable is not a deposit, is taxable when received, and buys the tenant nothing back. Neither may be charged for an assistance animal.

Choosing between them

PET DEPOSIT VERSUS PET FEE
Refundable pet depositNon-refundable pet fee
Legal characterSecurity deposit (§92.102)Contract fee; not a deposit
At move-outRefund or itemise within 30 days; deduct only animal-related damage the tenant is liable forNothing to refund
TaxNot income when received if to be returned; income when kept (IRS Pub. 527)Income in the year received
Lease wording“Pet deposit of $___, held as part of the security deposit and refundable subject to §92.104”“Non-refundable pet fee of $___, not a security deposit”
Assistance animalsNot chargeableNot chargeable
RiskBad-faith penalties if mishandled (§92.109)Tenant may argue an unlabelled fee was a deposit

Writing the clause

  1. Label it. The word “deposit” pulls the amount into Subchapter C; the words “non-refundable fee” keep it out. Do not use both for one amount.
  2. If a deposit, state that it is part of the security deposit and that deductions are itemised under §92.104 — animal damage is not normal wear.
  3. If a fee, say what it is for (cleaning, wear allowance) and that it does not limit liability for damage.
  4. Add the assistance-animal sentence: no deposit or fee applies to an approved assistance animal (HUD/DOJ Joint Statement).

Pet rent

A monthly “pet rent” is rent, not a deposit, and follows the rent clause — due date, late fees under §92.019, and inclusion in any notice to pay rent or vacate. It cannot be charged for an assistance animal either.

Frequently asked questions

Is a pet deposit refundable in Texas?

If it is called a deposit and held to secure performance, yes — it is a security deposit under §92.102, refunded or itemised within 30 days of surrender (Property Code Chapter 92).

Is a non-refundable pet fee legal in Texas?

Yes, if the lease clearly labels it as a non-refundable fee rather than a deposit; it is income when received (IRS Publication 527).

Can either be charged for an assistance animal?

No. An assistance animal is a reasonable accommodation, not a pet; deposits, fees and pet rent do not apply, though the tenant remains liable for damage (HUD/DOJ Joint Statement).

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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