A Guide To Rental Applications in Texas [+Free Template]

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DISCLAIMER

This article provides general information and is not legal advice. For accuracy and specific guidance on landlord-tenant laws, consult an attorney before making any decisions or taking action.

Overview

DEPOSIT

RENT CONTROL

NOTICE OF ENTRY LAWS

RE-KEYING LAWS

RENTAL AGREEMENT

LATE FEES & GRACE PERIODS

SMOKING LAWS

PET LAWS

Experienced property owners in Texas know the importance of effectively managing rental applications. When executed correctly, this pre-screening process provides valuable insights into a tenant's suitability for your properties. 

The first step to success is comprehending and adhering to Texas rental application laws. This not only facilitates a smooth application process but also protects you from potential legal issues that can be costly and time-consuming.

There are specific laws regarding application fees, disclosure requirements, consent for background checks, and anti-discrimination practices when it comes to rental applications in Texas. These regulations are vital for enabling landlords to make informed decisions while safeguarding tenant rights.

This article will provide comprehensive information about what landlords need to know before creating a Texas residential rental application. We’ll also be providing useful resources and templates to assist you throughout the process.

What is a Texas Rental Application?

A Texas rental application is a standardized form that property owners give to prospective tenants to complete. This process is considered an important part of the requirements to rent an apartment in Texas. 

Rental application forms in Texas typically require personal information, rental history, financial statements, and references from employers or previous landlords. The information collected from this form can help landlords determine if the applicant is a good fit for their rental. 

Additionally, a Texas residential rental application can help a property owner assess tenant reliability, ensuring timely rent payments. However, there are some guidelines landlords must follow during this process to ensure federal and local law compliance. 

For example, laws governing the maximum rental application fee in Texas allow landlords to charge reasonable fees for processing applications and protect tenants from being fleeced. Also, specific state laws require applicants to be over 18 to qualify as valid renters.

What To Include in a Rental Application

When creating a rental application form in Texas, landlords should include the following information to meet the requirements to rent an apartment in Texas:

  • Applicant’s Personal Information: Full name, contact details, current address, proof of identification, and pet ownership status.
  • Proof of Income: Acceptable documents include pay stubs, W-2s, bank statements, or an offer letter.
  • Employment History: Details of past and current employers; freelancers should provide tax documents.
  • References: Personal, landlord, and credit references to verify rental history.
  • Screening Reports: Obtain consent for credit and background checks as local laws allow.
  • Co-signer Information: If applicable, a co-signer must also complete a rental application.

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Texas Rental Application Laws And Requirements 

Below is an overview of some key Texas rental application laws property owners should know while creating rental applications. 

Maximum Rental Application Fee Texas

In Texas, there are no legal limits on the amount landlords can charge as a rental application fee. This makes the maximum rental application fee Texas landlords can impose effectively unlimited. Also, landlords should note that the rental application fee is non-refundable, regardless of whether the applicant is approved or denied.

Landlords should note that Texas law mandates specific disclosures during rental applications. These disclosures include any fees charged during the application process, screening criteria, and how background checks will be conducted. Non-compliance with these disclosures might make the landlord liable to refund the application fee or any related fees.  

Security Deposit Limits Texas

No provision under Texas law limits the amount a landlord can charge for a security deposit. Additionally, there are no requirements for providing receipts or holding deposits in a separate account. However, landlords must maintain valid records of any security deposits received.

Fair Housing Compliance

Both federal and state laws in Texas prohibit discrimination in housing-related activities, including during rental applications in Texas. 

According to the federal Fair Housing Act, landlords cannot discriminate against a tenant based on race, color, religion, national origin, sex, familial status, or disability. This applies to all aspects of tenant screening and application to rent in Texas. 

Additionally, the Texas Fair Housing Act expands these protections to include gender identity, sexual orientation, and source of income. Consequently, landlords cannot request information concerning any of the above characteristics on a rental application in Texas or use them as selection criteria.

Required Disclosures in Rental Application Texas

Landlords in Texas are required to disclose a variety of important information during their application to rent in Texas. This ensures transparency and compliance with state laws, protecting both landlords and tenants. 

Here’s a detailed look at the disclosures that must be included in a Texas residential rental application.

  • Landlord Identification: Landlords must provide their name and address, as well as the contact information for any management firms involved in the leasing process.
  • Security Deposit Information: The application must detail the amount of the security deposit, how it will be collected and stored, any interest it may accrue, and the conditions under which it will be returned. Additionally, landlords must disclose any deductions made from the deposit along with explanations for these charges.
  • Existing Damage Disclosure: A move-in inspection checklist or report should be provided to document any existing damages to the property before the tenant's occupancy.
  • Legal Rights Information: Tenants should receive information on how to access applicable landlord-tenant laws, ensuring they are aware of their rights and responsibilities.
  • Registered Sex Offender Disclosure: Landlords must inform potential tenants if they are aware of any registered sex offenders living in the vicinity of the rental property.
  • Risk Disclosures: Information regarding potential risks such as flooding or fire hazards must be disclosed to tenants.
  • Safety Measures: Landlords should provide details about safety features in the property, including escape routes and sprinkler systems.
  • Environmental Hazards: Any known environmental hazards, such as mold, radon, or bed bugs, must be disclosed to ensure tenant safety.
  • Smoking Policy: The application should outline the landlord's smoking policy within the rental property.
  • Domestic Violence Rights: Tenants must be informed of their rights related to domestic violence situations, including any protections available under Texas law.

Free Texas Rental Application Resources 

Credit and Background Check Laws Texas 

Texas has specific state and federal laws applicable to credit and background checks to protect the rights of prospective tenants. It's important that landlords understand and ensure compliance with these rules during the application to rent in Texas. 

According to Texas Property Code Sec. 92.3515, landlords must provide a written notice of their selection criteria to the applicant. Additionally, landlords must inform applicants how their personal information will be used and obtain acknowledgment before running any background checks.

At the federal level, the Fair Credit Reporting Act (FCRA) mandates landlords to obtain written consent from applicants to conduct background checks. 

Verifying Employment and Income

A common practice among landlords in Texas is to request proof of income from applicants as part of the requirements to rent an apartment in Texas. This will help landlords confirm whether a prospective tenant can afford the monthly rent. 

Failure to conduct due diligence to verify a tenant's income can lead to significant financial repercussions for landlords, including potential evictions and loss of rental income.

Below are some of the common types of proof that landlords can collect from tenant applicants.

  • Pay Stubs: You can ask tenants to provide copies of their last three months of pay stubs to demonstrate a consistent income stream. 
  • Annual Tax Returns: Another way to easily verify a renter’s income is to ask them for a federal tax return, particularly the IRS 1040 form, from the previous year. For self-employed individuals, you can request a 1099 form instead to confirm their wages and taxes.
  • W-2 Tax Form: Alternatively, you can ask the applicant for a W-2 form. This form shows what an employer withholds from an employee’s earnings for taxes and is useful for verifying income. However, it may not reflect any recent job changes or raises.
  • Letter from an Employer: A salary verification letter from an employer is another way to confirm a tenant's salary information. You can also ask for employment references to validate this information further.
  • Bank Statements: If the tenant is self-employed, requesting for bank statements, including deposits and withdrawals, can help provide insight into personal finances. Ideally, you should request two to three months' worth of statements for a comprehensive view.

How To Collect Rental Applications in Texas

There are mainly two methods landlords collect rental applications, either through paper or online rental application from Texas.

Paper Forms vs Online Forms

Paper forms offer a more accessible option for applicants who lack internet access or have limited technical skills. They also provide a familiar format for many landlords, particularly those who prefer traditional methods. These forms are available online for download in the form of rental application templates, which a landlord can easily print and give to prospective tenants.

Alternatively, landlords can use online rental application platforms to collect applications to rent in Texas. This approach is more effective than paper forms and ensures faster turnaround, organization, and legibility of applications.

A good example to consider is Landlord Studio, a property management software that allows landlords to seamlessly create and distribute online applications and collect application fees. This platform is an all-in-one solution that can also help you with tenant screening reports, rent collection, and tax reporting—all at an affordable cost.  

Conclusion

Creating and managing rental applications can be demanding. As a landlord or property owner, you want to ensure your rental application forms are in compliance with state and federal laws. Also, you want to keep up with any updates to Texas maximum rental application fees so you don’t end up overcharging a tenant. 

The good news is that the Texas rental application process can become easier and more efficient with the help of property management tools like Landlord Studio. This software can help you streamline the collection of applications and fees while maintaining compliance with relevant laws. 

Texas Landlord Tenant Laws

Texas Rental Application FAQs

How Do I Complete a Texas Rental Application?

To create an effective screening process, landlords should collect essential information from prospective tenants. Typically, a Texas rental lease application form should include the full name and address of the applicant, rental history, employment information, income verification, credit history, personal references, and consent for background checks.

Why Is a Texas Rental Application Necessary?

A Texas rental application is a crucial element of the pre-screening process for potential tenants. For landlords, this document gathers vital information that aids in making informed decisions regarding prospective renters.

What Are Credit References on a Texas Rental Application?

Credit references are individuals or entities that have had financial interactions with the applicant, such as credit card companies, banks, or investment firms. These references help landlords assess the applicant’s creditworthiness.

What Information Is Prohibited on a Texas Rental Application?

Both state and federal laws restrict landlords from collecting certain information during the rental application process. This includes information concerning race, color, nationality, religion, gender, familial status, disability, and criminal history.

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