Texas Room Rental Agreement
Just because you don’t own multiple properties doesn’t mean you can’t become a landlord. Renting a room in your home can be a great way to supplement your income, pay your mortgage, or make some extra cash.
If you decide to embark on a “house hacking” journey to more financial freedom, it’s a good idea to treat a room rental in much the same way you’d treat a full rental property. This means creating a room rental agreement Texas laws would approve of, providing tenants with the necessary disclosures about the property, and following all relevant landlord-tenant laws.
In this guide, we examine room rentals in Texas, how they relate to freestanding rentals, and the essential laws involved.
Texas Room Rental Laws
Local landlord-tenant laws govern all rental relationships in the Lone Star state. Therefore, landlords must be familiar with them before renting out property. Landlord-tenant laws can differ significantly from state to state, so it’s critical to be familiar with and stay up-to-date on them regularly.
Types of Room Rental Agreements
When deciding to create a room rental agreement, Texas landlords have a few options to choose from.
- Verbal agreement: A Texas room rental agreement does not have to be written, as simple verbal agreements are considered legal. However, TurboTenant recommends a written lease to ensure expectations are understood.
- Fixed-term lease: A fixed-term lease provides stability for landlords and tenants because it has a clear start and end date and often lasts a year or more.
- Month-to-month lease: Month-to-month agreements offer flexibility because they have no set end date. However, unlike a fixed-term lease, neither landlords nor tenants have the security of knowing exactly how long the engagement will last. Either party can terminate the agreement with proper notice.
Room Rental Agreement Texas
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Required Landlord Disclosures (7)
When signing a lease agreement, whether for a single room or an entire house, the landlord must also disclose specific information according to state and federal law.
In Texas, these disclosures include:
- Lead paint: Landlords must inform tenants about the knowledge or presence of any lead-based paint or lead-based paint hazards on all properties constructed before 1978.
- Flood risk: If a Texas landlord knows the property is in a 100-year FEMA-designated floodplain or has been damaged by flooding within the last 5 years, they must disclose that to the tenant (Tex. H.B. No. 531).
- Early termination: Texas landlords must inform tenants that they have a right to vacate the property and terminate the lease early in certain circumstances (Tex. Prop. Code § 92.016).
- Tenant’s remedies: Every lease in Texas must contain information informing tenants of their right to request repairs from the landlord and the consequences that could arise if the landlord does not meet the obligation (Tex. Prop. Code § 92.056).
- Parking rules: The parking rules for multi-unit buildings must be provided to the tenant in writing or when the policies change (Tex. Prop. Code § 92.0131).
- Landlord identity: Landlords must list the name and address of the person responsible for managing the rental property (Tex. Prop. Code § 92.003).
- Copy of lease: Landlords must give tenants a copy of the lease agreement within 3 days of the tenant moving in (Tex. Prop. Code § 92.024).
Security Deposits
Maximum security deposit: Landlords can charge any amount for security deposits in Texas.
Security deposit receipt: Texas landlords are not required to provide a receipt for the deposit.
Deduction tracking: A landlord has the legal right to use funds from the security deposit to cover the costs of repairing or cleaning the rental unit beyond normal wear and tear. The landlord must provide an itemized list of all deductions from the security deposit. The remaining balance, if any, must be returned to the tenant unless they owe outstanding back rent (Tex. Prop. Code § 92.104).
Security deposit return: Texas landlords must return security deposits within 30 days’ after a tenant moves out (Tex. Prop. Code § 92.103).
Pet deposits: Landlords can charge whatever amount they see fit as a pet deposit as long as it’s clearly outlined in the lease agreement.
Rent Payment Regulations
Late rent fees: Texas caps late fees at a “reasonable” amount, which means they cannot exceed 12% of the monthly rent for properties with four or fewer units and 10% of the monthly rent for properties with more than four (Tex. Prop. Code § 92.019).
Right to withhold rent: If a landlord doesn’t repair an issue that threatens the health and safety of tenants within a reasonable amount of time, the tenant may withhold rent. The deduction cannot exceed 1 month’s rent or $500, whichever is greater (Tex. Prop. Code § 92.0561b).
Grace period: Texas provides an automatic 2-day grace period for rent payments (Tex. Prop. Code § 92.019).
Pet rent: Texas landlords can charge pet rent, provided the lease lists it.
Rent Payment Increase Rules
Rent payment increase frequency: Texas landlords can raise the rent on a month-to-month lease as often as they’d like, as long as they give tenants at least 30 days’ written notice.
Rent payment increase maximum: There is no cap on how much a Texas landlord can raise the rent.
Rent control/stabilization: Texas has no laws implementing rent control or stabilization.
Room Rental Agreement Breaches
Failure to pay: Missed rent payments do not necessitate a “pay or quit” notice in Texas; instead, the landlord can immediately begin eviction proceedings (Tex. Prop. Code § 24.005(a)).
Lease violations: Texas landlords are not required to give tenants a chance to cure lease violations. Instead, they can immediately issue a 3-day Notice to Quit. (Tex. Prop. Code § 24.005(b)).
Lease abandonment: Tenants who end a lease early and without proper cause could be liable for the remaining rent on the lease term or sued by the landlord for damages.
Self-help evictions: Landlords should never attempt to evict a tenant on their own, as self-help evictions are illegal. However, Texas law allows landlords to change the locks on a tenant who is late on rent in specific situations (Tex. Prop. Code § 92.0081).
Ending a Room Rental Agreement
Like a free-standing unit, a room rental agreement in Texas must be terminated by following state law.
Month-to-month: Landlords or tenants can cancel month-to-month Texas room rental agreements by providing at least 1 month’s written notice.
Fixed-term: Fixed-term Texas room rental agreements end on the last day of the stated term but tenants can end them early and without penalty if the tenant meets a qualifying legal condition.
Room abandonment: Abandoning a room early functions the same as breaking a lease early for a freestanding unit, and the tenant could be liable for owed rent or damages.
Tenant’s right to terminate: To early terminate a room rental agreement, Texas law allows for the following situations:
- Entering into active military duty
- Domestic or sexual abuse
- Death of the sole occupant tenant
- Landlord harassment or retaliation
- Early termination agreement in the lease
Landlord Room Access Laws
Immediate access: Texas landlords are legally allowed to enter a tenant’s room at any time if there is an emergency.
Landlord harassment: If a landlord repeatedly enters the room without notice, they could be liable for legal or civil penalties. However, harassment does not enable tenants to cancel the lease.
Advance notice: Texas law does not stipulate a timeframe for entering a tenant’s room.
Agreement Renewal/Termination
Required renewals: Landlords in Texas are not required to renew a lease when it ends.
Required notice: Unless the lease contains an automatic renewal clause, landlords do not need to give advance notice when they do not intend to renew a fixed-term lease.
Month-to-month considerations: Landlords or tenants can terminate month-to-month lease agreements by giving 1 month’s written notice.
Room Rental Agreement Texas FAQs
What to include in a Texas room rental agreement?
Texas law suggests that a legal room rental agreement contains all parties’ names, the property’s address, rules regarding rent payment and security deposit collection, and applicable disclosures.
How do I legally rent out a room?
Anyone in Texas can legally rent a room as long as they follow local laws, acquire permits if necessary, provide a habitable unit, and follow Texas landlord-tenant laws.
How to make a Texas room rental agreement?
TurboTenant offers legally reviewed Texas room rental agreement templates in printable PDF format for your convenience.