A Texas rental application is a document landlords use to screen and vet potential tenants to determine whether they are reliable and can pay rent on time.
Laws
- Application Fee – Non-refundable
- Fee Limits – No limits
- Security Deposit – There is no limit on how much landlords can charge for a security deposit (no statute).
State Laws
In the landmark 2015 United States Supreme Court case regarding a rental application and fair housing laws, the US Supreme Court held that disparate impact claims were included in the Fair Housing Act. [1]
The ruling enforced that a disparate impact claim, an adverse effect on a protected class of persons from practices in housing, employment, and other areas conducted in a formal, neutral, and non-prejudicial manner, was covered under the Fair Housing Act.
State laws impose unique requirements on landlords screening potential/future tenants, and state law is specific regarding tenants’ rights during the screening process.
Title 15, Chapter 301, and Title 8, Chapter 92 of the Texas Property Code provide for the following during the application process.
For Landlords
Rejection of Rental Application
A landlord is presumed to have given notice of rejection or acceptance when they have informed the applicant by telephone or sent a written notice in the mail.
Landlords may reject an applicant for several reasons, including unsatisfactory information revealed during a credit check or various background checks.
Landlords should have objective rental policies and selection criteria and provide applicants with a written explanation for why they were rejected.
Failure to Disclose
A landlord may reject a rental application when an applicant fails to disclose complete or accurate information.
Security Deposit
Property owners or landlords may mention a security deposit during the screening process. Still, they typically do not collect this deposit until a tenant enters a lease agreement.
Texas law does not limit the security deposit a landlord may request from a tenant.
For Tenants
Rental Application Fee
Texas law does not limit the amount landlords can charge for fees. Generally, most landlords charge between $15 and $30 and won’t consider the application without the fee.
The landlord uses the fee for a background check and credit report.
Discrimination on Rental Applications
Landlords may not discriminate against applicants. They may not ask questions regarding several areas, such as race, religion, or familial status, where a child under eighteen (18) lives with a parent, legal guardian, or designee of the parent or legal guardian.