The bill, H.B. No. 2901, amends Section 92.102 of the Property Code in Texas to establish a new maximum limit on security deposits for residential leases. The new legal language specifies that a security deposit is defined as any advance of money intended to secure performance under a lease, excluding rental application deposits or advance rent payments. Importantly, the bill stipulates that the security deposit cannot exceed the amount of one month's rent for the dwelling.

Additionally, the bill clarifies that the amended provisions will only apply to leases that are entered into or renewed on or after the effective date of the Act, which is set for September 1, 2025. Leases that were entered into or renewed prior to this date will continue to be governed by the existing law. This transition ensures that current agreements are not retroactively affected by the new regulations.

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