Quiz yourself on Texas rental laws
If you are a renter, own rental property or are considering renting property to others, you should consider acquiring a free copy of the Real Estate Center's Landlord's and Tenant's Guide by Judon Fambrough, attorney at law.
The guide inclues fact that every Texas landlord and tenant should know about legal rights regarding rental property.
Try printing out this newsletter and taking this true/false quiz. If you answer all ten correctly, you probably don't need the guide. If you miss more than a few, the last paragraph tells you how to get a free copy.
1. The maximum amount that a landlord may demand as a security deposit is regulated by law.
2. If a tenant breaches the lease by moving out early, the tenant automatically forfeits the security deposit.
3. Under the deduct-and-repair statute, a tenant may deduct a maximum of $500 a month for repairs.
4. Under certain circumstances, a landlord can obtain a lien on the tenant's property. By the same token, the opposite is true.
5. A tenant may unilaterally, without penalty, terminate a residential lease if the required security devices are not installed.
6. Rent may be paid in cash.
7. If a tenant has damaged property, at the end of the lease, the maximum liability the tenant faces is set by the amount of the security deposit.
8. If a landlord has casualty insurance on the premises, the tenant's property is automatically covered by the landlord's policy.
9. With both residential and commercial leases, a landlord has a duty to mitigate damages by reletting the premises if the tenant breaches the lease by moving out early.
10. A residential landlord may change the locks and withhold a new key from the tenant until all delinquent rent is paid.
According to Fambrough, here's how you should have answered each question:
1. False. Texas has no law dictating the maximum security deposit. It is negotiable.
2. False. The Texas Property Code allows the landlord to deduct from the security deposit damages and charges resulting from a breach of the lease. While damages and charges, such as reletting fees and lost rent, may exceed the security deposit, there is no automatic feature.
3. False. The maximum is the greater of $500 or one month's rent.
4. True. The Texas Property Code permits landlord's liens and grants tenants limited liens against the landlord's property.
5. True. After giving a written three- or seven-day notice to the landlord to comply, tenants may unilaterally terminate a lease.
6. Usually True -- unless cash payments are prohibited by your lease.
7. False. A tenant is personally liable for all damages exceeding the amount of the security deposit.
8. False. Tenants must obtain their own insurance policy to cover personal property.
9. True. Since 1997, landlords have been required to mitigate rent in both commercial and residential leases by diligently trying to relet the vacated premises.
10. False. Residential landlords may change locks, but they cannot withhold a new key for delinquent rent.
The landlords' and tenants' guide can be viewed or downloaded from the Real Estate Center by navigating to http://recenter.tamu.edu/pdf/866.pdf, or, if your hyperlinks are active, by clicking here.
Sources: David S. Jones, The Real Estate Center at Texas A&M University, and TexasRealEstate.com
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