I’ve found that homeowners generally face the same set of issues and have the same set of questions related to their rights, duties, and obligations as homeowners under Texas law. The answers to these questions depend on whether they are residential or commercial tenants. Although the ownership and operation of commercial and residential properties have some similarities, the differences are numerous and diverse enough to warrant separate treatment for each area. This article is intended to discuss issues related to commercial property with commercial tenants only. This article is my attempt to create a very general, quick reference guide to the rights, duties, and obligations of business owners and operators under the Texas Property Code. It is by no means complete, but it is hopefully informative enough to help the reader ask informed questions of legal advisors and thus be more efficient and economical in consulting legal advisors.

You should not take this article as legal advice, and I strongly recommend that you seek competent legal advice for your specific situation. The Texas Legislature updates and passes new laws related to landlord-tenant issues on a regular basis. Additionally, Texas courts regularly interpret these laws. Therefore, the laws discussed in this article are current as of December 2005. I have not assumed any duty or obligation to update this article beyond this date.

I. Duty to Mitigate

If a tenant abandons the leased premises in breach of the lease, the landlord has a duty to mitigate (lessen) the damages the landlord would experience as a result of the abandonment. Therefore, the landlord should not let the premises sit vacant in the hope of recovering lost rent from the tenant. The tenant cannot waive this duty to mitigate damages, so any provision in the lease that attempts to waive this duty or exempt the landlord from liability is void.

II. Security deposit

A security deposit is any money advance, other than a rental application deposit or rent advance payment, that is primarily intended to secure the performance of a lease.

3rd Security Deposit Retention

Before returning the security deposit, the landlord may deduct from the deposit any damages or charges for which the tenant is obligated under the lease or resulting from the breach of the lease. However, normal wear and tear (not including deterioration resulting from neglect, carelessness, accident or abuse) cannot be withheld from the security deposit.

If the landlord withholds any part of the security deposit, the landlord must refund the balance of the security deposit and provide the tenant with a written description and itemized list of all deductions. However, this description and itemized list is not required if the tenant owes rent and there is no dispute about the amount of rent owed. Refund, written description and itemized list of all deductions are not required until renter gives landlord a written statement of the renter’s shipping address for the purpose of refunding the security deposit. However, failure to provide a forwarding address does not forfeit the tenant’s right to a refund or description of deductions.

IV. Security Deposit Refund

The landlord must refund the security deposit no later than 60 days after the date the tenant delivers the property and notifies the tenant’s forwarding address.

V. Change of Landlord/Owner and Security Deposit

The new owner or lessor of the leased premises is responsible for the return of the deposit from the date on which he acquires the title of the leased premises, unless the new owner acquired the premises through foreclosure through a real estate mortgage. However, the previous landlord or owner remains responsible for the security deposit received while the owner or landlord until the new owner provides the tenant with a signed statement acknowledging that the new owner has received and is responsible for the tenant’s security deposit. and specifying the exact dollar amount of the deposit.

SAW. Landlord Responsibility for Security Deposit

A landlord who in bad faith withholds a security deposit is liable for an amount equal to the sum of $100, three times the portion of the security deposit wrongly withheld, and reasonable attorneys’ fees incurred by the tenant in a lawsuit to recover The deposit. A landlord who fails to return a security deposit or provide a written description and itemized list of deductions on or before the 60th day after the date the tenant surrenders possession is presumed to be acting in bad faith.

VII. Prevent access to leased premises

A landlord may not intentionally prevent a tenant from entering the leased premises, except with the permission of the court, unless such prevention results from (i) bona fide repairs, construction, or an emergency, (ii) removal of the contents of leased premises abandoned by a tenant or (iii) changing the locks on the doors of a tenant who is late in paying at least a portion of the rent. The lease may modify this provision.

VII. Lock change due to late payments

If a landlord changes the lock on the door due to late rent payments, the landlord must post a written notice on the tenant’s front door that lists the name and address or phone number of the person or company that you can get the new key. The new key is only required to be provided during the tenant’s regular business hours and only if the tenant pays rent in arrears. The lease may modify this provision.

IX. Disposal of the property by the landlord after abandonment by the tenant

A landlord may remove and store any property of a tenant that remains after the property has been abandoned. The landlord may also dispose of the property in storage if the tenant does not claim the property within 60 days of the property’s storage date. The landlord must deliver by certified mail to the tenant at the tenant’s last known address a notice stating that the landlord may dispose of the tenant’s property if the tenant does not claim the property within 60 days after the storage date of the property. property. A lease may alter this provision.

X. Abandonment by the Tenant

A tenant is presumed to have vacated the premises if property, equipment, or other property, in an amount substantial enough to indicate a probable intent to vacate the premises, is removed or has been removed from the premises and the removal is not within of the normal course. of the tenant’s business. The lease may modify this provision.

XI. Interruption of Public Services

If the tenant pays the utilities directly to the utility companies, the landlord may not interrupt or cause the interruption of those services unless the interruption results from bona fide repairs or construction or an emergency. A lease may alter this provision.

XII. Dismantling of Doors, Windows, Locks, Hinges, Etc.

A landlord may not remove a door, window, attic hatch, lock, hinge, hinge pin, doorknob, or other mechanism connected to a door, window, or attic hatch cover from the leased premises. In addition, a landlord may not remove landlord-provided furniture, fixtures, or appliances from the leased premises. However, the landlord may remove these items for a bona fide repair or replacement, which must be done immediately. A lease may alter this provision.

XIII. The landlord can terminate the lease due to a public conviction of indecency by the tenant

A landlord may terminate a lease signed or renewed after June 15, 1981 if the tenant or occupant uses the property for an activity for which the tenant, occupant or any of their agents or employees is convicted of public indecency (prostitution , promotion of prostitution, display or distribution of obscene materials, sexual acts with persons under the age of 18, etc.) and said person has exhausted or abandoned all avenues of direct appeal of the conviction. The notice of termination must be made in writing within six months after the right of termination has arisen. The lessor obtains the right to possess the property 10 days after the date of notification.

XIV. Notice Requirement Before Eviction

The landlord must give the tenant who defaults or withholds past the end of the term at least three days’ written notice to vacate the premises before the landlord files a forcible detention lawsuit, unless the parties have contracted for a shorter or longer period of time in a written lease or contract.

The eviction notice must be given in person or by mail at the location in question. If the notice is delivered in person, it may be by personal delivery to the tenant or any person residing in the premises who is 16 years of age or older or personal delivery at the premises and affix the notice to the inside of the main entrance door . Service by mail may be by regular mail, registered mail, or certified mail, return receipt requested, to the location in question. The notice period starts from the day the notice is delivered.

Copyright 2005, Tri Nguyen