TEXAS BROKEN LEASE GUIDE
Texas Apartment Application Fees and Deposits
Here’s how Texas apartment application fees and deposits work, which terms to get in writing and how these charges differ from a security deposit.
Four payments to keep separate
Application fee
This pays for screening, and you usually don’t get it back. Ask how much it is for each applicant, and if a guarantor or other provider charges its own application fee.
Application deposit
Money you pay with an application. Texas law says you get it back if you’re rejected. Backing out after you’re accepted is a different story, so read the agreement.
Security deposit
Money the landlord holds against the signed lease, in case you don’t meet its terms. Confirm the amount and the rules for refunds and deductions. It’s not the same as an application charge.
Provider fee or premium
A separate payment for a provider’s service or coverage, such as a guarantor company. Check its cancellation rules, and ask if you’d still owe a cash deposit.
Where these definitions come from: Texas Property Code, Chapter 92, Subchapter I, §§92.351 and 92.102. For provider terms, see how to read a guarantor quote.
Ask to see the criteria before you pay
Under §92.3515, a landlord that hands out an application has to make a printed notice available with its selection criteria and the reasons it may deny you. If it rejects you and never made that notice available, it has to give back the application fee and any application deposit. Texas Property Code, Chapter 92, Subchapter I.
What if you haven’t heard back?
Section 92.352 sets a seven day clock. In most cases, the landlord has until the seventh day after you turn in a completed application on its form. If it hasn’t accepted you by then, you’re treated as rejected. If there was no form, the seven days start when the landlord takes your application deposit. Section 92.353 covers how notice can be given and what happens when the deadline lands on a weekend or holiday. Check the exact facts and the statute before you claim a deadline has passed. Texas Property Code, Chapter 92, Subchapter I.
Before you sign the application
Check the unit, rent, move-in date, lease term and any work they promised to do. Keep a copy. If they say you can cancel and get a deposit back, get that in writing. Don’t assume you get a grace period to change your mind. TexasLawHelp: applying for a rental unit.
If you think you’re owed money back
Pull together the application, the criteria notice, receipts and the decision. Ask them to explain the charges item by item. TexasLawHelp: rental application fees links to legal aid guidance and a form for asking for a refund. If the landlord says you aren’t owed the money, or you disagree about a deadline, get legal help.
Make the next conversation easier
Use the criteria request template and the checklist for before you pay.