Rental property owners must follow landlord-tenant laws, and using a lease or rental agreement helps ensure the landlord and the tenant’s rights are well protected.

Lease agreements or rental agreements are legal documents between a tenant and landlord detailing each party’s benefits and liabilities.  Each state has its own guidelines regarding what must be included in a residential lease agreement.  

If you are wondering what should be included in your Texas lease agreement, read on to better understand what is needed to comply with Texas residential rental laws.  You should always consult a Texas landlord attorney if you are trying to construct your own Texas lease agreement.   

Check out Girling Law’s fully compliant Texas residential lease agreement here:

1. Tenant information

The first thing you should indicate is the names of all the adult tenants who will be dwelling in the leased property and signing the rental contract. In general, this binding agreement means that:

  • You can legally seek rent payment from any one of your tenants if the others are unable to pay the rent.
  • You can terminate a lease if even just one tenant violates major lease terms.

Naming them in the signed tenancy agreement means that it’s a binding contract that will allow you to hold them legally responsible for the terms and conditions of the residential lease.

2. Occupancy Limits

Aside from listing the adult tenants in the property lease, you should also specify that only the tenants and their minor children are to reside in the rental unit. This way, you can protect your right to determine and limit who occupies your property. Doing so also gives you legal grounds to evict tenants who are illegally subletting the apartment.

3. Rent and Late Fees

Texas Lease Agreement Of course, it’s also important to clearly state your policies regarding rent and late fees. This include:

  • Amount of rent;
  • When to pay rent;
  • Acceptable methods of payment;
  • Amount of rent increase, if any;
  • Amount charged for a late fee; and
  • When to charge late fees.

You can impose a late fee by identifying a grace period, if you elect to have one at all. You may charge an initial late fee, followed by ongoing, daily late fees until rent is paid. However, Texas law limits the total late fee you may charge. This limitation is a function of the tenant’s monthly rent payment. It is critical to understand these Texas late fee laws because the penalties for violating them are quite steep! Making these polices known beforehand will encourage your tenants to pay on time and will help avoid disputes in the future.

4. Tenancy Term

Establishing the length of your tenants’ possession of your property is another very important detail. We refer to this as the lease’s “term.”

In Texas, residential leases often include an initial lease term with a “month-to-month provision.” The majority of Texas residential leases start with a 1-year initial term and proceed on a month-to-month basis thereafter.

Because the landlord is enjoying fewer make readies (i.e. cleaning out, making repairs, and otherwise preparing the unit for the next tenant) with a longer initial lease term, landlords will customarily offer a lower monthly rent payment for a longer lease term.

It is also customary for landlords to charge a higher price once a residential lease transitions into a month-to-month term.

5. Security Deposit Policy

Security deposits are a common source of issues between landlords and tenants. To avoid confusion, it’s best to be clear about the details, such as:

    • The amount and use of the deposit. While there’s no imposed limit in Texas, most landlords charge not more than two months worth of rent.
    • When and how to return the deposit. You are mandated by law to return the deposit within a month of the latter: 1) the tenants vacate the unit; or 2) the tenants give you a written demand for an accounting and / or return of the deposit AND provide you their forwarding address. You need to fully describe this process to ensure compliance with Texas law and to manage your tenant’s expectations.

Never state that you are paying your tenant interest on their security deposit.

6. Repair & Maintenance

As the landlord, you are responsible for repairing and maintaining the property.

Your lease contract should include the following to avoid security deposit withholding disputes:

  • Tenants should keep the rental premises clean and sanitary;
  • Tenants pay for damages caused by their abuse or neglect;
  • Tenants must alert you of defective or dangerous conditions in the leased property;
  • Your restrictions on alterations or repairs that can be conducted by the tenant; and
  • Your tenant’s rights if you failed to address a problem despite being given proper notice.

7. Disclosures

The State of Texas requires specific written disclosures in residential leases. The federal government may also have written disclosures depending on the age of your unit and your tenant.

Always consult with a licensed Texas attorney to understand which state and federal disclosures are required for your Texas rental property. Alternatively, always use a rental contract drafted by a Texas landlord attorney.

8. Other Terms of the Agreement

Every parcel of Real estate is unique. And obtaining a customized residential lease agreement for every tenant every time is nearly always cost prohibitive. This is why it is so important to use a thorough lease contract for your Texas rental properties.

A thorough lease will include provisions addressing your rental property’s unique features such as parking restrictions and use of common areas. A well thought out residential lease agreement will also incorporate the provisions of HOA rules, Condo Association Rules, and other neighborhood rules and regulations that can apply to your rental property.