H.B. No. 1185 introduces a new section to the Texas Property Code, specifically Section 92.027, which mandates that landlords provide written notice to residential tenants regarding any proposed rent increases upon lease renewal. The notice must include the new rent amount, details of any improvements that justify the increase, and the effective date of the new rent. Landlords are required to deliver this notice at least seven days before the tenant must notify them of their intention to vacate at the end of the lease term.

Additionally, if a landlord fails to provide the required notice, they are prohibited from demanding notice to vacate or increasing the rent until seven days after they have complied with the notice requirement. Tenants who are affected by a landlord's non-compliance are entitled to a penalty of $100. This new provision will apply only to lease agreements entered into or renewed after the effective date of the Act, which is set for September 1, 2025.

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