The bill amends the Texas Property Code to clarify the definition and treatment of security deposits in residential leases. It introduces a new definition of "security deposit" in Section 92.001, specifically stating that it refers to any advance of money intended to secure performance under a lease or to cover 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 will take effect immediately if it receives a two-thirds majority vote in both houses; otherwise, it will become effective on September 1, 2025.

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