The bill, H.B. No. 2901, amends Section 92.102 of the Property Code to establish a new maximum limit on security deposits for residential leases. Specifically, it defines a security deposit as any advance of money intended to secure performance under a lease, excluding rental application deposits or advance rent payments. 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 new provisions will only apply to leases 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.

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