Is a rental application fee refundable in Texas?

Not by default; an application fee is defined as nonrefundable (Sec. 92.351(1-a)). But if the landlord rejects the applicant without having made written tenant selection criteria available at application time, the fee and any deposit must be refunded (Sec. 92.3515(e)).

What is the difference between an application fee and an application deposit in Texas?

A fee offsets screening costs and is nonrefundable; a deposit is refundable if the applicant is rejected (Sec. 92.351(1), (1-a)). Name them separately on the application.

Does a Texas landlord have to give tenant selection criteria in writing?

Yes, printed and made available when the application is provided, with the grounds for denial, and the applicant signs an acknowledgment; without the signature the law presumes the criteria were not provided (Sec. 92.3515(a)-(c)).

How long does a landlord have to accept or reject an application in Texas?

If no acceptance notice is given by the seventh day after a completed application (or after a deposit is accepted with no form), the applicant is deemed rejected (Sec. 92.352(a)); that deadline extends to the end of the next day if it falls on a Saturday, Sunday, or state or federal holiday (Sec. 92.353(c)).

What is the penalty for not refunding an application fee in Texas?

For a bad-faith failure to refund a fee or deposit owed under the subchapter: $100, three times the amount wrongfully retained, and the applicant's attorney fees (Sec. 92.354).

Can the application say the fee is nonrefundable no matter what?

It can say the fee is nonrefundable, but a provision that waives the applicant's rights under Subchapter I is void (Sec. 92.355). The refund duty in Sec. 92.3515(e) survives any such line.

Tarrant County · Owner Guide

Do I have to refund a rental application fee in Texas?

By Andrew ChavisUpdated September 23, 20265 min read

The Short Answer

It depends on one thing you did or did not do at the moment you handed out the application. Texas lets a landlord keep a nonrefundable application fee (Tex. Prop. Code Sec. 92.351(1-a)), but only if the landlord made printed tenant selection criteria available to the applicant when the application was provided, stating the grounds for denial such as criminal history, rental history, income, credit, and incomplete information (Sec. 92.3515(a)). The applicant should sign an acknowledgment that the notice was available; without a signed acknowledgment, the law presumes it was not, though that presumption can be rebutted with other proof (Sec. 92.3515(b)). Reject an applicant when the notice was not made available and you owe back the application fee and any application deposit (Sec. 92.3515(e)). An application deposit is refundable on rejection regardless (Sec. 92.351(1)). A landlord who in bad faith fails to refund is liable for $100, three times the amount wrongfully kept, and the applicant's attorney fees (Sec. 92.354). This is general information, not legal advice.

Fee and Deposit Are Two Different Words

The subchapter runs on two definitions. An application fee is a nonrefundable sum given to the landlord to offset the cost of screening (Sec. 92.351(1-a)). An application deposit is a sum given in connection with the application that is refundable if the applicant is rejected (Sec. 92.351(1)). Owners who collect one number and call it both have already lost the argument: whatever part of it was a deposit comes back on rejection, full stop. Name each amount on the application, and keep the fee to what screening actually costs.

The Criteria Have to Be Made Available When You Hand Out the Application

At the time an applicant is given a rental application, the landlord must make available a printed notice of the tenant selection criteria and the grounds on which the application may be denied, including criminal history, previous rental history, current income, credit history, and inaccurate or incomplete information on the form (Sec. 92.3515(a)). The applicant signs an acknowledgment that the notice was available; without a signed acknowledgment the law presumes it was not, though that presumption can be rebutted with other proof the notice was made available (Sec. 92.3515(b)). The acknowledgment has prescribed language, telling the applicant they had the opportunity to review the criteria and that if they do not meet them or give incomplete information the application may be rejected and the fee will not be refunded (Sec. 92.3515(c)). It may be part of the application itself if the notice is underlined or in bold (Sec. 92.3515(d)). A screenshot of criteria on a listing site, sent after the application already went out, does not satisfy the statute's timing.

What Happens When You Reject Without It

If the landlord rejects an applicant and had not made the criteria notice available, the landlord must return the application fee and any application deposit (Sec. 92.3515(e)), by mail to the address the applicant gives if they ask for it that way (Sec. 92.3515(f)). Silence is a rejection: an applicant is deemed rejected if the landlord does not give notice of acceptance by the seventh day after a completed application on the landlord's form, or after accepting an application deposit when no form was furnished (Sec. 92.352(a)); if that seventh day falls on a Saturday, Sunday, or state or federal holiday, the deadline extends to the end of the next day (Sec. 92.353(c)). Rejecting one co-applicant rejects all of them (Sec. 92.352(b)). Any application provision that waives these rights is void (Sec. 92.355).

What Bad Faith Costs

A landlord who in bad faith fails to refund an application fee or deposit in violation of the subchapter is liable for $100, three times the amount wrongfully retained, and the applicant's reasonable attorney fees (Sec. 92.354). On a $75 fee and a $300 deposit kept from a rejected applicant who never saw criteria, that is $100 plus $1,125 plus the lawyer, over a screening report that cost $35. The statute was added in 2007 (H.B. 3101) and has not softened.

Why the Criteria Are Also Your Fair Housing Defense

Published, written criteria do a second job the statute does not mention: they are the record that every applicant was judged by the same standard. A blanket rule written on the fly, no evictions ever, no criminal history of any kind, is the kind of policy that draws disparate-impact scrutiny under federal fair housing law, and the applicant who was denied under it is the one holding the unsigned acknowledgment. The criteria should describe the standard in terms of the tenancy: income multiple, credit thresholds, rental-history look-back, and how criminal history is considered on a case-by-case basis. They never describe the person.

How We Run It

Our tenant selection criteria are published on the website and handed with every application; the acknowledgment is signed before a fee is taken. The fee is a fee and the deposit is a deposit, named separately on the form. A rejection goes out in writing inside the seven days with the criterion that was not met, and a deposit refund goes out with it. It is a two-page document and a signature, and it is the difference between keeping a screening fee and risking bad-faith liability of three times it back.

Common Questions

Is a rental application fee refundable in Texas?: Not by default; an application fee is defined as nonrefundable (Sec. 92.351(1-a)). But if the landlord rejects the applicant without having made written tenant selection criteria available at application time, the fee and any deposit must be refunded (Sec. 92.3515(e)).
What is the difference between an application fee and an application deposit in Texas?: A fee offsets screening costs and is nonrefundable; a deposit is refundable if the applicant is rejected (Sec. 92.351(1), (1-a)). Name them separately on the application.
Does a Texas landlord have to give tenant selection criteria in writing?: Yes, printed and made available when the application is provided, with the grounds for denial, and the applicant signs an acknowledgment; without the signature the law presumes the criteria were not provided (Sec. 92.3515(a)-(c)).
How long does a landlord have to accept or reject an application in Texas?: If no acceptance notice is given by the seventh day after a completed application (or after a deposit is accepted with no form), the applicant is deemed rejected (Sec. 92.352(a)); that deadline extends to the end of the next day if it falls on a Saturday, Sunday, or state or federal holiday (Sec. 92.353(c)).
What is the penalty for not refunding an application fee in Texas?: For a bad-faith failure to refund a fee or deposit owed under the subchapter: $100, three times the amount wrongfully retained, and the applicant's attorney fees (Sec. 92.354).
Can the application say the fee is nonrefundable no matter what?: It can say the fee is nonrefundable, but a provision that waives the applicant's rights under Subchapter I is void (Sec. 92.355). The refund duty in Sec. 92.3515(e) survives any such line.