When do you need a holding agreement?

While a holding agreement is not typically standard, a landlord can request one from a tenant if the market is unusually competitive. The holding deposit is a financial pledge that the tenant will rent the rental unit, and unlike a security deposit, it is non-refundable. Here’s a holding deposit agreement template you can use for your renter.

What does the residential lease agreement include? 

The lease agreement is your rental contract with the tenant. As a landlord, it’s your job to get everything in writing so that you and the tenant remain on the same page from start to finish of the rental contract. 

The lease agreement should include the following information:

• The rental property’s address
• The lease term or rental period
• The amount of the rental payments and security deposit
• The due date of the monthly rent
• The late fees on monthly rent
• The grace period for late rent payments
• Pet rent or deposit, if applicable
• Clarification on who is responsible for repairs and maintenance tasks 
• Designated parking spaces
• Notifications on lead-based paint

Conducting an inspection on a rental property

For a smooth and successful move-in, landlords should ensure the home or unit is clean and everything works properly. If the previous tenant caused any damages or normal wear, including scuffed walls or dingy carpet, it is your responsibility to freshen up the rental for the incoming tenant. 

Once the prospective tenant is approved, the tenant and landlord will do a move-in inspection together. The inspection helps document any minor damage to the property before the tenant moves in to avoid any disputes if the landlord needs to deduct funds from the security deposit.

When the tenant is ready to move out, the landlord and tenant will conduct a final move-out inspection. If there are no damages beyond normal wear, and there is no unpaid rent remaining, the tenant should receive their full security deposit. 

The security deposit is a legal contract binding the landlord to refund the tenant. In some cases, the landlord may deduct funds for cleaning or patching nail holes or property removal if the tenant leaves personal belongings behind. The initial security deposit and pet deposit are to ensure there are funds to cover property damage caused by the tenant or tenant’s pet. In the spirit of clear communication, the landlord should provide an itemized list of charges deducted from the tenant’s deposit or pet deposit if there are any deductions for damage or necessary maintenance.

Raising rent in Texas

Ensuring every document is painstakingly in order will help streamline the rental process. When the lease is renewed in the residential contract, there is no rent increase limit according to Texas state law.

There is no rent control law in Texas. Landlords do not have stipulations on giving proper notice for rent increases once the lease is ready to be renewed. However, to remain on good terms with the tenant and as a courtesy, the landlord should give a 30-day notice in writing whether the lease is fixed or is a month-to-month lease. Being transparent and communicating clearly will help influence your trust with tenants and build a good landlord-tenant relationship.

Texas rental agreements and documents every landlord needs

If you have good tenants who pay rent on time, take care of the property, and are considerate to their neighbors, one of your goals should be to retain these tenants. As we previously covered, Texas has no law on rent increases or official requirements for landlords to give notices. By issuing a written notice, you can spare yourself any disputes and avoid falling out of a quality tenant’s good graces. A little consideration will go a long way.

As a landlord, you’re responsible for making sure the rental unit is in a habitable condition. When a tenant reports a leak or a faulty appliance, the landlord must arrange for repairs within a reasonable time frame.

Whenever you must enter the premises of the rental, you are required to give your tenant 24-hour written notice that you or a service provider intends to visit the property. 

The eviction process in Texas

According to the Texas Tribune, there were 37,000 evictions in Houston, Fort Worth, and Dallas collectively in the first quarter of 2022. Eviction is rare in some of the biggest cities in Texas and should be the last resort. The lease agreement is a legal contract, and if tenants are violating the lease terms or are not paying their rent, the landlord has the right to begin the eviction process if it comes to these last-resort circumstances.

There is an eviction process in Texas that every landlord should abide by, which includes the following steps: 

• The landlord must give at least a 3-day written notice to evacuate; sometimes, a 30-day notice may be mandatory. 
• After the judgment has been issued, the landlord has to wait five days before taking any action.
• After the final judgment, the landlord can request a writ of possession to remove the tenant’s property.

In Texas, you are not allowed to retaliate against the tenant for something they did that you don’t like if it does not violate the lease terms. 

What is considered retaliation? 

Suppose your tenant asks for excessive repairs. You cannot evict them, increase their rent, or deprive them of the usual services for making a repair request. The tenant is protected by the Texas Property Code 92.331 for six months after making a repair request.

Ending a tenancy doesn’t have to be tricky. If you have concrete grounds for eviction, you can start the proceedings.

Lease termination, lease violations, and ending the lease early

Everything should be in writing. When the time comes to renew the lease, email your tenant in advance to ask them if they plan on renewing their lease. Doing this will help you adequately prepare if the tenant opts out of renewing.

If your tenant asks to end a lease early, you can ask them to stay and continue paying rent until you find a new tenant or charge them a penalty fee if you include an early termination clause in the lease terms. If the tenants are victims of family violence, they qualify for early lease termination. In Texas, military deployment allows service members to give a notice of termination to the landlord and break the lease early.

FAQ: Essential Texas rental documents