Quick Answer: Apartment deposits in Texas fall into two groups: money the law says must come back, and money that never does. Your security deposit is refundable, minus lawful charges for damage or unpaid rent, within 30 days after you move out and give a written forwarding address. Application fees and deposit alternative premiums are not refundable.
A typical move-in quote lists several charges, and only some of them come back. This guide breaks down apartment deposits in Texas using the Texas Property Code, so you know what to expect before you sign. Gruene Pointe studio apartments serves renters across New Braunfels and the I-35 corridor, and these are fair questions to ask on any tour.
What Are Apartment Deposits in Texas?
Section 92.102 of the Texas Property Code defines a security deposit as any advance of money, other than a rental application deposit or prepaid rent, that is meant mainly to secure your performance under a lease. That definition matters. It's the reason your apartment deposit carries refund protections that an application fee does not.
As of October 2026, Texas sets no statewide cap on how much a landlord can collect. Amounts vary with credit, rental history and the unit itself, so two renters at the same community can be quoted different figures.
Apt Security Deposit vs. Application Fee
The statute separates three payments renters often lump together. An application fee is nonrefundable and offsets the cost of screening you. An application deposit is different, because it's refundable if you're rejected as a tenant. Your apt security deposit only applies once a lease exists.
One timing rule protects applicants. If the landlord doesn't give notice of acceptance on or before the seventh day after you submit a completed application, Section 92.352 treats you as rejected.
Is an Apartment Holding Fee Refundable?
Texas law doesn't use the phrase holding fee. In practice, an apartment holding fee is money paid to take a unit off the market while your application is processed, and the written terms decide whether it works as an application deposit, part of the security deposit or a nonrefundable charge. Read that paper first. Before handing over any deposit for apartment approval, ask the leasing office to put the refund conditions in writing.
What Does Texas Security Deposit Law Say About Refunds?
Texas security deposit law gives the landlord 30 days after you surrender the apartment to refund your deposit, along with a written, itemized list of any deductions. The clock has a catch. Under Section 92.107, the landlord doesn't owe the refund or the list until you provide a forwarding address in writing.
Skipping that step doesn't forfeit your money, but it can stall it. Email or mail the address on move-out day and keep a copy.
Some leases make advance written notice of move-out a condition of the refund. That clause only counts if it's underlined or printed in conspicuous bold type, per Section 92.103. Don't count on the deposit to cover your final month, either. Section 92.108 bars tenants from withholding the last month's rent on that basis.
What a Landlord Can Deduct From Your Apt Deposit
Deductions must tie to charges you're legally liable for under the lease or for breaking it. Normal wear and tear is off limits. The code defines it as deterioration from the intended use of a home, and it excludes damage caused by negligence, carelessness, accident or abuse by you, your household or your guests.
Faded paint and light carpet wear generally count as wear and tear. A hole in the drywall usually doesn't.
A landlord who keeps a deposit in bad faith can owe $100 plus three times the amount wrongfully withheld under Section 92.109. Reasonable attorney's fees can be added on top. The core Texas law of deposit refunds sits in Chapter 92 of the Texas Property Code, and the Texas State Law Library security deposit guide summarizes it in plain language.
Deposit and Fees: Which Ones Come Back?
Apartment deposits in Texas are easier to compare side by side. The table below sorts the most common deposit and fees on a move-in quote by whether you can expect the money back. Before you apply, review current studio floor plans and pricing and ask for the full move-in cost in writing.
| Payment | Refundable? | Texas Rule |
|---|---|---|
| Security deposit | Yes, minus lawful deductions | 30 days after move-out, once a forwarding address is given |
| Application fee | No | Covers the cost of screening |
| Application deposit | Yes, if you're rejected | Deemed rejected with no acceptance by day seven |
| Holding fee | Depends on the written terms | Not defined by name in the code |
| Monthly fee in lieu of deposit | No | Landlord must offer the deposit option in writing |
| Surety bond premium | No | You can still owe for damage |
| Bottom line | Security deposit and application deposit | Everything else is usually gone once paid |
How a Deposit Eliminator Works
A deposit eliminator, often sold as a surety bond, swaps a large refundable payment for a smaller one you never get back. Yardi says its bond premium typically runs under 20% of a traditional deposit. Here's the tradeoff: if you leave damage behind, the bond pays the landlord, and the bond company can then seek repayment from you.
Texas also lets landlords offer a monthly fee instead of a deposit under Section 92.111. They must tell you in writing that you can pay a regular deposit instead, and that you can switch to the deposit at any point. Is the lower upfront cost worth it? If you can afford the full deposit and plan to leave the unit clean, the refundable option usually costs less over a full lease.
Frequently Asked Questions
1. How long does a landlord have to return a deposit in Texas?
The landlord must refund your security deposit on or before the 30th day after you surrender the apartment, with an itemized list of any deductions. That deadline depends on you giving a written forwarding address first. Without one, the refund can be delayed, though you don't lose your right to it.
2. Is there a limit on apartment deposits in Texas?
No. Texas has no statewide cap on security deposit amounts, so landlords set them based on factors like credit, rental history and the unit. That's why quotes can differ between applicants at the same community. Always ask for the deposit amount and the refund terms in writing before you pay.
3. Can a landlord keep my deposit for normal wear and tear?
No. Section 92.104 bars landlords from keeping any part of a deposit to cover normal wear and tear, meaning deterioration from ordinary use of the home. Damage caused by negligence, accident or abuse is different. You can be charged for that, as long as the deduction is itemized in writing.
4. What should I do if my landlord won't return my deposit?
- Confirm you sent a written forwarding address and keep proof.
- Send a written demand letter that cites Section 92.109.
- Gather your lease, move-in checklist and move-out photos.
- File in your local justice court if the amount is under $20,000.
5. Can I use my security deposit as my last month's rent?
No. Section 92.108 says a tenant may not withhold the final month's rent on the grounds that the deposit covers it. A tenant who does this in bad faith can owe the landlord three times the rent withheld plus attorney's fees. Pay the last month and request the deposit refund separately.
Conclusion
Apartment deposits in Texas come down to one question: is the money securing your lease, or paying for a service? Security deposits and rejected application deposits come back under state law, while fees and bond premiums don't. If you're comparing studios in New Braunfels, ask for every charge in writing, then look at what's included, from the floor plan to the pool, fitness center and co-working amenities. A clear move-in quote makes apartment deposits in Texas far less confusing.
