Understanding Texas tenant screening laws is vital for landlords and renters in 2025. Unlike many states, Texas lets landlords set their own rules and does not limit application fees. However, landlords must give all applicants their screening rules in writing.
Landlords must also get written permission for any background check and follow all federal fair housing laws. If a landlord breaks their own rules, they must quickly refund fees. Knowing exactly what landlords can and cannot do under Texas rental application laws is the key to legal, fair leasing.
Overview of Tenant Screening Laws in Texas
A successful rental business begins with a sound legal foundation. Tenant screening in Texas involves following specific state rules and essential federal protections.
Fair Housing Act (FHA)
The Fair Housing Act (FHA) stops discrimination. It bans unfair treatment against seven protected groups: race, color, national origin, religion, sex, familial status, and disability. While Texas does not add significantly to these classes at the state level, some local ordinances may. Critically, denying an applicant based on their protected group can be a violation.
Fair Credit Reporting Act (FCRA)
The second law is the Fair Credit Reporting Act (FCRA). This law controls how consumer reports, including credit checks and background checks for renters in Texas, are used. It ensures data is accurate and private. Any landlord using a third-party service like LeaseRunner must follow the FCRA.
This means getting written permission from the applicant. It also means giving an Adverse Action Notice if you deny the application based on the report.
Texas Property Code Sec. 92.3515
State-level rules govern the process itself. The Texas Property Code, Chapter 92, sets rules for the landlord-tenant relationship. Specifically, Section 92.351 requires landlords to give applicants a written statement of their rental criteria. This creates transparency in Texas rental application laws.
Texas does not limit application fees or security deposits, but you must still act fairly. Utilizing resources that outline Texas-specific laws to ensure compliance.
Allowable Tenant Screening Criteria in Texas
When setting the requirements to rent a house in Texas, landlords must use fair, non-discriminatory criteria. You must apply the same standards to all applicants to ensure fairness and legal compliance.
Written Screening Policy Requirements for Landlords
Landlords must provide a written screening policy. This policy lists what landlords look for in a background check, like income or credit standards. Applicants must get this policy before applying and sign to acknowledge it. Clear policies stop unfair choices.
Credit & Rental History
Landlords also perform a rental verification to confirm payment history and behavior. They want to see if tenants are financially reliable. Large amounts of debt, many late payments, or accounts in collections suggest a risk of not paying rent. Landlords also perform a rental verification to confirm payment history and behavior.
Denying an applicant because a prior landlord reported property damage is a valid reason if it matches your policy.
Income Verification
Landlords can legally check an applicant's income to ensure they can afford the rent. This is a vital part of tenant screening in Texas. Most landlords use the 3x Rule: gross monthly income must be at least three times the monthly rent.
Verification includes information like pay stubs, W-2 forms, or tax returns. To make this process faster and more reliable, landlords should learn how to verify tenant income using a comprehensive income verification and cash flow report.
Eviction Records
Checking eviction records is a must-do part of the rental house background check. Under Texas background check rules, landlords can deny an applicant due to a history of evictions. However, landlords should only screen for recent evictions (usually within seven years). If a filing did not result in a judgment, you can still factor it in based on your written rules.
Use a reliable tenant screening service in Texas, like LeaseRunner, to check eviction history data quickly.
Criminal History
Screening for criminal history is allowed under Texas tenant screening laws. But you must be careful to avoid Fair Housing violations. Only certain crimes tied to safety or property can be used in decisions. Landlords cannot ban all criminal records. They must follow HUD criminal background check requirements and Texas rules carefully.
Texas Portable Tenant Screening Reports (PTSRs)
A Portable Tenant Screening Reports (PTSR) is one complete screening report. A tenant hires an approved third party to create it. It usually includes a credit check, rental history, eviction records, and criminal background information. The tenant then provides this single report to several landlords. This saves both the tenant and you money and time.
Texas Property Code Sec. 92.3515 outlines how landlords must handle Portable Tenant Screening Reports:
- Freshness: An approved company must generate the PTSR. It cannot be older than a set time, usually 30 days.
- Integrity: The report must be secure. No one can tamper with it after it’s created.
- Waiver of Fee: If a tenant gives you a valid PTSR, you should review it. You cannot make the renter pay for a new background check for renters in Texas. This helps the tenant save on application fees.
Landlords must accept the PTSR, but they do not have to approve the tenant. For example, a renter moving from Austin to Dallas can provide the same report to several landlords in both cities. If a landlord agrees to accept a PTSR, they must review the report instead of requiring the renter to pay again for a new background check.
Landlords must follow all fair housing rules when using a PTSR. The decision must rely only on the facts in the report. Remember to get written consent from the tenant to use the report.
How Much Landlords Can Charge Tenant Screening Fees
A frequent question about Texas tenant screening laws concerns costs. Unlike some states, Texas has no limit on the cost for a background check or screening fee. Though no official maximum exists, the fee must be "reasonable."
Texas Property Code Sec. 92.351(a)(2) states a landlord can charge an application fee only if they provide the applicant with a written statement of the approval or denial criteria. These fees cover credit and background checks. Screening fees usually cost from $25 to $50, depending on the service and check depth.
Landlords may collect application deposits to hold properties, but they must manage these carefully to avoid issues. Another critical rule relates to refunds. Texas Property Code Sec. 92.351(b) says a landlord may need to refund the application fee if they fail to follow their own written selection criteria.
Fees are generally non-refundable when proper disclosures are provided. Landlords often use tenant screening services in Texas for compliant and efficient fee collection.
A Practical Guide to the Texas Tenant Screening Process
A consistent, step-by-step process is the best way to follow Texas tenant screening laws and find a great resident. Follow this guide using our reliable platform.
Step 1: Collect Applications and Screening Fees
Landlords should use clear rental application forms that include a section for written consent to a tenant background check in Texas. For example, require each adult renting to sign and date their agreement.
Make rental requirements, such as minimum income or credit score, clear on the form and disclose fees in advance. If you charge a fee, explain if it is refundable and keep a signed copy for your records.
Step 2: Process Applications
Next, verify basic details. Call listed employers to confirm income history. Reach out to previous landlords to check for issues such as late payments or property damage. Always apply the same checking steps to every applicant to avoid fair housing issues under Texas rental application laws.
Step 3: Run a Texas Tenant Screening Report
Now, you run the actual background check for renters in Texas. Use an approved service like LeaseRunner. Your report should include: Credit Report, Eviction Report, and Criminal History Report. Remember to get the applicant’s written consent first, as this is an FCRA rule.
Our tenant background screening reports are compliant with all Texas background check rules. You can even learn how to check a tenant screening report to understand what you are reading.
Step 4: Evaluate & Make the Final Decision
Compare the Texas tenant screening report results against your written criteria. If the report shows stable income above three times the rent and no recent evictions, they’re a strong candidate. If any criminal record raises safety concerns, review its relevance before making a decision. Document how you reach final decisions so you always have clear proof in case of disputes.
Step 5: Issue Decision Notice
In Texas, you must send written approval or denial to each applicant, usually by email or a signed letter. If you deny someone, include the reason and provide a copy of any report that influenced your choice. This is required under the Fair Credit Reporting Act.
Tenant Rights During the Tenant Screening Process
State and federal laws have clear rights to protect applicants during screening. These laws ensure fairness and guard their privacy.
The Right to Non-Discrimination
The main right is protection against discrimination based on protected groups. Texas follows federal rules. Some cities, like Austin, add more protections, such as against denying applicants based on their source of income (like a Section 8 voucher).
You must know what a landlord cannot do in Texas. Any denial based on a protected characteristic is a violation of Texas tenant screening laws.
The Right to Review Criteria and Refund
Texas Property Code Sec. 92.351 gives the applicant the right to see their written screening criteria before they pay any fee. Also, if landlords fail to hold the unit while reviewing the application, or fail to follow their own written rules, the applicant may be entitled to a refund of the application fee.
The Right to Dispute Inaccuracies (FCRA)
If a landlord denies your application because of something on the screening report, you have the right to challenge that issue. You dispute the error directly with the Consumer Reporting Agency (CRA).
For example, you can dispute an eviction that a court later dismissed. The landlord is required to send an Adverse Action Notice so you know which agency to contact and how to file your challenge.
The Right to Privacy and Consent
Landlords must get clear, written permission from a renter before running a background check in Texas. The FCRA makes this mandatory. When signing the rental application, the person agrees to let the landlord view their credit, criminal, and eviction history. This ensures that their private information stays protected.
The Right to Reasonable Accommodation (Assistance Animals)
The Fair Housing Act (FHA) protects tenants with disabilities. It allows them to request an assistance animal (like a Service Dog or ESA). Landlords must accept this animal as a needed change to the rules. They cannot charge extra fees or deposits for the animal. Denying someone simply because they need an assistance animal violates federal housing laws.
Best Practices for Texas Landlords to Stay Compliant
Being compliant with Texas tenant screening laws means more than just following the law. It means being fair, consistent, and using the right tools.
1. Maintain a Consistent Written Policy
Create a full, written screening policy. It must list all rental requirements in Texas. Apply these rules to every applicant without exception. Consistency is your best defense against legal claims. Our tenant screening checklist helps you cover all your bases.
2. Use Professional Tenant Screening Services in Texas
Never trust free or unreliable public records. Partner with an approved Consumer Reporting Agency (CRA) like LeaseRunner. Our reports are FCRA-compliant. They are designed to meet Texas background check rules. This ensures the data you use is accurate and legally obtained.
3. Document Every Decision and Communication
Keep detailed records of everything. Save every application, tenant screening report, denial letter. If you deny someone, file the report and the Adverse Action Notice together. This paperwork proves your denial was based on your policy (e.g., low credit), not on a protected status.
4. Separate Fees and Deposits
Keep the application fee (for screening) separate from the Texas rental laws security deposit (for damages). The rules for handling the deposit are different. Do not take a deposit until the applicant is approved.
5. Always Issue Adverse Action Notices
If you deny an application based on anything in a consumer report, you must send the Adverse Action Notice. This FCRA rule is essential. Failure to send this notice is a common error that can lead to lawsuits under Texas tenant screening laws.
6. Stay Informed on Local Housing Trends
Check for updates in major cities. Local rules often change. They might add rules about criminal history or source of income. Know what notice period is required for certain changes. Our team constantly tracks changes to lease laws in Texas so you stay safe.
Additionally, understanding the fair market value is crucial for setting a competitive price. Landlords can investigate using our guide on how much rent should I charge.
Conclusions
Mastering Texas tenant screening laws is the cornerstone of running a successful rental business. Texas law demands clear attention to federal rules for fair housing and the use of consumer data. You must create a clear, written screening policy and apply it consistently.
Use a reliable, FCRA-compliant service like LeaseRunner to navigate the complexities of Texas tenant screening laws with confidence. It is the safest way to build a professional and successful rental business from the start.
FAQs
1. What background checks can landlords run in Texas?
Landlords can check credit, eviction, rental, and criminal history and verify income—but only with written consent.
2. What are the rent control laws in Texas?
Texas does not have statewide rent control. Rents are open, but landlords must follow all other lease laws in Texas about notice and deposits.
3. What do landlords look for in a background check?
A landlord will review:
- Steady income
- No recent evictions
- Good rental history
- Any criminal history that affects safety
4. How much is a background check for an apartment?
Fees for applicant reports usually range from $25–$50 per person in Texas, depending on the depth of the check.
