Texas state has various laws regarding the use of rental applications. If your document is not compliant with Texas law, you may get sued by the applicant and face legal consequences.
The following Texas application laws are in effect regarding the application screening process:
Application Fee
This law states that there is no limit in terms of what application fee can be charged by Texas landlords. Furthermore, the application fee is non-refundable regardless of its amount.
Security Deposit
Similar to the application fee law, there is no Texas statute defining a limit on the amount landlords can charge tenants for security deposits. There is also no requirement for the provision of receipts or holding requirements. However, the landlord is obligated to keep valid records of any security deposits they are sent.
Housing Dismicination Law
In Texas, there is no specific state law relating to housing discrimination. However, the Fair Housing Act (FHA) is in place. The FHA states that it is illegal to discriminate based on the following characteristics:
- Race
- Color
- Nationality
- Religion
- Sex
- Familial status
- Disability
- Criminal history
As a consequence, it is not allowed to ask for any of these terms on a Texas Rental Application form nor to include them in the decision-making process.
Notice of Eligibility
Potential tenants must be informed about the screening criteria and reasons for denial or approval. To prove that these facts were shared, a signature of acknowledgment must be provided within the application or alongside it.
Consent Credit Check
Within Texas, a federal law is in effect that requires potential renters to provide written consent for a credit history check during the application process. This is known as the Federal Credit Reporting Act (FCRA)