Tenant Screening in Texas
Legal rules, protected classes, and the screening protocol that actually predicts on-time rent
Legal rules, protected classes, and the screening protocol that actually predicts on-time rent
This guide outlines the Texas tenant screening protocol, specifically focusing on eviction risk assessment for landlords with 1 to 20 units. Texas law presents distinct challenges and opportunities for property owners. Understanding these specifics is not optional; it's operational necessity.
The primary legal framework for residential tenancies in Texas is found in Tex. Prop. Code § 91 & § 92. These sections dictate everything from lease agreements to eviction procedures. Unlike some states, Texas generally favors property owner rights within a defined legal structure. This means clear rules, but also strict adherence to them.
Key regulators for landlords primarily include the local Justice Courts, which handle eviction proceedings, and various municipal code enforcement departments for property standards. There is no single statewide housing authority dictating tenant screening processes beyond the general fair housing laws. Your interactions will mostly be with the court system when issues arise and with local government for property maintenance compliance.
For a landlord with a smaller portfolio, the practical bottom line is straightforward: follow the law precisely. Deviations, even minor ones, can result in significant financial penalties or loss of an eviction case. Texas courts are procedural. They expect landlords to know and follow the rules. This guide provides those rules.
Texas stands apart in several key areas:
Consider the non-payment notice period: a mere 3-day notice to vacate for non-payment of rent. This is one of the shortest in the nation. It means you must act quickly and precisely when rent is late. For no-cause situations (e.g., non-renewal of a month-to-month lease), a 30-day notice is typically required. These specific timelines are critical. Miss a deadline, use the wrong language, and your case could be dismissed, forcing you to restart the process and lose weeks of rent.
A concrete example of a common landlord mistake: A tenant is late with rent. The landlord sends an email stating, "Pay rent or move out." This is insufficient. Texas law requires specific written notice. Don't do that. Do serve a formal, written "Notice to Vacate" document, properly formatted, stating the exact amount due, the specific date by which the tenant must vacate, and delivered according to statutory requirements (e.g., certified mail, personal delivery, or affixing to the inside of the main entry door). This isn't just a recommendation; it's a legal prerequisite for filing an eviction suit.
Another common misstep: improperly handling security deposits. While there's no cap, landlords must return the deposit or provide a written itemized list of deductions within 30 days of the tenant vacating and surrendering the premises. Failure to do so can result in the landlord owing the tenant three times the amount of the deposit wrongfully withheld, plus attorney's fees. A $1,000 security deposit could become a $3,000 liability, plus legal costs. Keep meticulous records of property condition before and after tenancy.
As of recent legislative sessions, Texas lawmakers have shown a consistent focus on property rights while also addressing specific tenant concerns, often around notice periods or utility disconnections. For instance, recent discussions have involved attempts to standardize certain lease clauses or clarify tenant rights regarding essential services. While no sweeping changes to the core eviction process or screening criteria have passed that fundamentally alter the landscape for most small landlords, it's crucial to remain aware of proposed bills. Landlords should monitor legislative updates from organizations like the Texas Apartment Association (TAA) or local landlord associations. Even minor adjustments to notice requirements or allowable deductions can impact your operations and liability. What appears to be a small change in wording can have significant legal ramifications in court.
This guide will equip you with the knowledge to screen tenants effectively, understand the eviction process, and minimize your risks in the Texas residential rental market. Precision and adherence to law are your best defenses.
Understanding Texas eviction protocols is critical for effective tenant screening. Texas offers a landlord-friendly legal framework, but specific procedural adherence is non-negotiable. Deviations often lead to costly delays and rejections in Justice Court. This section covers unique Texas quirks, common traps, and recent legislative considerations relevant to landlords with 1-20 units.
The controlling statutes for residential tenancies are Tex. Prop. Code § 91 & § 92. Familiarity with these sections is not optional. They dictate everything from notice periods to security deposit handling.
Non-Payment Evictions: The 3-Day Notice Trap
Texas law requires a 3-day notice to vacate for non-payment of rent. This is a strict calendar day count, not business days. The notice must be in writing. It must state the tenant has three days to vacate or pay. It must specify the amount of rent due. Many landlords err by sending an email or text message as the sole notice. Don't do this. Do send a written notice. Hand delivery, certified mail with return receipt requested, or affixing to the inside of the main entry door are permissible methods. If affixing to the door, an additional copy should be mailed via regular first-class mail. This dual method is the safest practice.
A common mistake: demanding late fees in the initial 3-day notice. While late fees are recoverable in court, including them in the 3-day notice for *possession* can invalidate the notice. The notice must clearly demand only the past-due rent to provide the tenant the opportunity to cure. Separate demands for late fees are appropriate but should not be conflated with the 3-day notice to vacate for non-payment of rent. If a tenant tenders only the rent within the three days, you must accept it and cannot proceed with the eviction for that payment period. This is a critical distinction.
No-Cause Evictions: The 30-Day Notice
For month-to-month tenancies or when a lease term expires and you do not wish to renew, Texas allows for a no-cause eviction with a 30-day notice. This notice must be in writing. It must clearly state the tenancy will terminate on a specific date, at least 30 days from the date the notice is delivered. Just-cause statewide eviction protection does NOT exist in Texas. This means you generally do not need a reason to terminate a month-to-month tenancy or decline to renew a lease, provided proper notice is given and no discriminatory intent is present.
Security Deposits: No Cap, But Strict Rules
Texas has no statutory cap on security deposits. Landlords can charge any amount. However, the rules for returning or accounting for deposits are strict. You have 30 days after the tenant vacates and provides a forwarding address to either return the full deposit or provide a written itemized list of deductions. Failure to do so can result in significant penalties. A landlord who in bad faith retains a security deposit is liable for three times the amount of the deposit, plus a $100 civil penalty, and attorney's fees. This is a significant risk. Even if deductions are legitimate, failing to provide the itemized list within the 30-day window can trigger these penalties. Always send the itemized list via certified mail, return receipt requested.
County-Specific Carve-Outs and Local Ordinances
While Texas maintains a strong statewide framework, be aware of specific local ordinances. Cities like Austin, for example, have implemented local "right to cure" or "fair chance housing" ordinances that can affect screening and eviction processes. These are not statewide, but if your property is within a jurisdiction with such an ordinance, you must comply. For instance, some cities may require a longer notice period for non-payment of rent than the statewide 3 days before filing an eviction suit, or may restrict the use of certain criminal history records in screening. Always check local municipal codes in addition to state law. This is especially true for larger metropolitan areas like Dallas, Houston, San Antonio, and Austin.
Legislative Changes and Trends (2024-2026)
As of recent legislative sessions, Texas lawmakers have generally maintained the landlord-friendly posture of state law. However, there is ongoing discussion and occasional bills introduced regarding tenant rights, particularly in response to housing affordability concerns in major urban centers. One area of continued focus includes increasing transparency around fees and charges. While no major overhauls to the eviction process have been enacted recently, landlords should monitor for potential changes in how late fees are regulated or how application fees are handled. For example, some proposals have sought to cap application fees or require landlords to refund a portion if the applicant is rejected without cause. Stay informed by checking the Texas Legislature Online website for bill statuses. The trend is towards more explicit disclosure requirements rather than fundamental shifts in eviction timelines or grounds.
Screening for Eviction Risk: Practical Texas Advice
When screening, look beyond just credit scores. An eviction filing, even if dismissed, signals a significant risk. Texas Justice Courts are often overloaded. An eviction suit can cost you upwards of $300 in court filing fees and process server fees, even before attorney costs. If an applicant has a history of multiple filings, even if they won some, it suggests a pattern of disputes. Prioritize applicants with clear rental histories and no prior eviction filings. Always verify rental history directly with previous landlords, not just relying on tenant-provided references. Ask specific questions about payment consistency and property care.
Remember, the goal is to prevent an eviction, not just win one. Winning an eviction suit in Texas typically takes 3-6 weeks from notice to writ of possession, assuming no appeals. An appeal can extend this process by months. This is time and money lost. Thorough screening, adherence to the 3-day notice and 30-day notice protocols, and meticulous documentation are your strongest defenses.
Most states that regulate screening do it by narrowing what a landlord may consider. Texas went the other way. Tex. Local Gov't Code § 250.007, enacted as SB 267 in 2015 to void Austin's newly passed source-of-income ordinance, strips cities and counties of any power to make you accept a housing voucher. Turning away a Section 8 applicant is lawful in almost every Texas market. HUD's paired-testing work found the Texas site had the worst refusal rate of five studied: 78% of landlords declined voucher holders, most on the first phone call. Cunningham et al., "A Pilot Study of Landlord Acceptance of Housing Choice Vouchers," HUD Office of Policy Development and Research (2018)
The preemption left two doors open, and two cities have walked through them. Section 250.007 preserves local ordinances protecting veterans. Fort Worth amended its Human Relations Ordinance on March 19, 2024, making refusal of a veteran's Housing Choice or HUD-VASH voucher a Class C misdemeanor. San Antonio followed on May 7, 2026, reaching landlords who hold five or more units and exempting owners below that line. Inside either city, "we don't take vouchers" is a script you have to retire for veteran applicants, and only for them. Fort Worth Human Relations Ordinance amendment (council vote Mar. 19, 2024); San Antonio ordinance adopted May 7, 2026
Texas conditions your right to keep an application fee on disclosure. Under Tex. Prop. Code § 92.3515 you must make printed tenant selection criteria, and the grounds for denial, available when the applicant receives the application, and get a signed acknowledgment. An unsigned acknowledgment creates a rebuttable presumption you never gave the notice. Reject someone without having done it and you owe back the fee and the application deposit both. Keep the money in bad faith and § 92.354 exposes you to $100, three times the amount wrongfully retained, and the applicant's attorney's fees. Watch the calendar: under § 92.352 an applicant is deemed rejected if you give no written acceptance within seven days, so silence is a denial that starts the refund clock.
There is no general eviction-record sealing statute here. Justice court judgments stay public and screening vendors harvest them, so you see more prior-filing history in Texas than in most states, and can misread it more easily. Harris County logged 80,110 eviction cases in 2023, roughly 43% of which ended in dismissal, while close to 40% of the judgments that did issue were defaults against tenants of whom only 2.3% had counsel. Texas Housers, "2024 Harris County Eviction Snapshots" (May 16, 2024), 2023 records from all 16 JP courts What you will not see is a case routed through the Texas Eviction Diversion Program, whose files are confidential; a mediated 2020–2022 nonpayment will not appear. And since SB 38 took effect September 1, 2025, allowing judgment without trial where no fact issue is raised, judgments are landing faster. Read dispositions and dates, not hit counts.
| Fair housing enforcement agency | Texas Workforce Commission, Civil Rights Division | |
| Source-of-income protected? | Not at state level (local ordinances may apply) | Tex. Prop. Code § 91 & § 92 (Residential Tenancies) |
| Federal Fair Housing Act | Applies in every state, prohibits discrimination on race, color, national origin, religion, sex, familial status, disability. | |
Works in every state. Focuses on factors that actually predict on-time rent payment, not on surrogates that create legal exposure.
Pay stubs, tax returns, or bank statements, not just a self-reported number. Voucher income counts at face value.
Call two landlords back, not just the current one (incentive to give a glowing review to get them out).
Write down your criteria before you list the unit. Score every applicant the same way. Keep records for 2+ years.
A 620 FICO with 5 years of on-time rent beats a 720 FICO with a recent eviction. Look at the full picture.
Required under the federal FCRA whenever a consumer report contributes. Protects you legally and builds goodwill.
No. Texas has no statutory cap on tenant application fees. Landlords may charge any reasonable amount; practically this means charging the actual cost of the credit report, eviction search, and background check (typically $35 to $50 per applicant). Charging substantially above the actual cost opens the landlord to challenge under federal Fair Housing law if the applicant pool's composition raises disparate-impact concerns. Stay close to documented actual cost.
Yes, at the state level. Texas has no state law against source-of-income discrimination, and the federal Fair Housing Act does not protect source-of-income as a class. Austin had a local source-of-income protection that was preempted at the state level in 2015 (SB 267). Houston, Dallas, San Antonio, and Fort Worth have no protection. However, categorical Section 8 refusal is bad practice: it excludes a substantial pool of moderate-income applicants and concentrates risk in the remaining pool.
State law imposes no limits, but federal Fair Housing Act guidance requires individualized assessment. The HUD 2016 guidance under disparate-impact theory holds that categorical felony bans (e.g., "no felonies in the last 20 years") fail the test. The recommended Texas practice: 7-year lookback on convictions directly related to property safety (arson, weapons offenses, violent crimes against persons). Consider time elapsed, nature of the conviction, and relevance. Most Texas landlord-tenant attorneys advise documenting the individualized assessment for every rejection based on criminal history.
When you reject an applicant based wholly or partly on information in a consumer report (credit report, eviction search, background check), you must provide a written adverse-action notice within 30 days. The notice must include: (1) the name, address, and phone of the consumer reporting agency; (2) a statement that the agency did not make the decision and cannot explain it; (3) the applicant's right to a free copy of the report within 60 days; (4) the right to dispute. Failure to send exposes the landlord to actual damages and statutory damages of $100 to $1,000 plus attorney fees. Use a standard template; the FTC publishes one.
Three changes that materially reduce Texas eviction risk: (1) Verify income beyond pay stubs. Request two months of bank statements; pay stubs alone miss the gig-economy and irregular-income tenants whose actual cash flow is much weaker than the pay stub shows. (2) Call the prior landlord. The reference call costs 10 minutes and catches the high-risk tenants who get screened out elsewhere. (3) Document repair-request history. Tenants who fight repair requests in their prior tenancy will fight them with you. None of this is required by Texas law; all of it materially reduces eviction probability.
Informational only, not legal advice. Consult a licensed Texas attorney. Source attribution in the Sources band below.