The bill amends the Texas Property Code to clarify the definition and implications of security deposits in residential leases. It introduces a new definition of "security deposit" in Section 92.001, specifying that it refers to any advance of money intended to secure performance under a lease or to cover potential damages to the leased premises. Additionally, it establishes that any deposit required by a landlord from a prospective tenant or during the lease term is presumed to be a security deposit, including any refundable or nonrefundable fees designated for damages.

The changes in the law will only apply to leases entered into or renewed after the bill's effective date, ensuring that existing leases are governed by the previous law. The bill is set to take effect immediately if it receives a two-thirds majority vote in both houses; otherwise, it will take effect on September 1, 2025.

Statutes affected:
Introduced: Property Code 92.001, Property Code 92.102 (Property Code 92)