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A BILL TO BE ENTITLED
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AN ACT
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relating to rental application fees; providing an administrative |
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penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter I, Chapter 92, Property Code, is |
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amended by adding Section 92.356 to read as follows: |
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Sec. 92.356. APARTMENT COMPLEX APPLICATION FEES. (a) In |
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this section: |
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(1) "Apartment complex" means five or more dwellings |
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in one or more buildings that are owned by the same owner, located |
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on the same lot or tract, and managed by the same owner, agent, or |
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management company. |
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(2) "Commission" means the Texas Workforce |
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Commission. |
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(b) A landlord of an apartment complex or the landlord's |
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manager or agent may not charge an application fee to an applicant |
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in an amount greater than the reasonable costs of processing the |
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applicant's rental application and screening the applicant's |
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eligibility according to the landlord's tenant selection criteria |
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made available under Section 92.3515. |
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(c) A landlord of an apartment complex or the landlord's |
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manager or agent that charges an application fee shall: |
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(1) file with the commission a detailed disclosure of |
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the fee, including the costs of processing the rental application, |
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screening an applicant, and any other costs; and |
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(2) at the time an applicant is provided with a rental |
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application and before accepting an application fee, provide to the |
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applicant the detailed disclosure of the fee described by |
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Subdivision (1). |
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(d) If the commission finds that a landlord of an apartment |
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complex or the landlord's manager or agent has violated this |
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section, the commission may assess an administrative penalty of: |
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(1) $1,000 for a first violation; and |
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(2) $2,000 for a second or subsequent violation. |
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SECTION 2. The changes in law made by this Act apply only to |
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an application fee charged on or after the effective date of this |
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Act. |
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SECTION 3. This Act takes effect September 1, 2025. |