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Texas Rent Increase Laws

Texas Rent Increase LawsTexas Rent Increase Laws

Summary

Texas is considered a landlord-tenant-friendly state for its relatively hands-off legislation regarding rental properties. However, as a property owner, it's essential to understand your limitations on rent increases and how to navigate those waters for a more successful lease renewal process. This article will thoroughly explore Texas law and prepare you for more successful rental pricing.

Texas is one of the fastest-growing states in the U.S., with an increasing number of people leaving the east and west coasts to enjoy a taste of southern living. With this influx of residents, many Texans are seeing increases in their rental rates. This is good news for property owners who are ready to scale profits. However, property owners need to be careful not to cross any legal boundaries when increasing rent in Texas. 


General Principles for Renting in Texas

Texas generally has favorable landlord-tenant laws as they are hands-off in most aspects. Texans can enter into oral or written lease agreements that become valid once the payment is accepted. Once the lease is in effect, both landlords and tenants have their rights protected, such as the right to timely repairs and payments.


Does Texas Have Rent Control?

Texas landlords may charge whatever they wish at signing a new lease or lease renewal, because Texas state law preempts local authorities from imposing rent control. This makes Texas a sought-after place for property investment. Moreover, with the increase in population in the last five years, Texas rental rates are steadily rising at a competitive rate. And, with the freedom for landlords to change rental rates at the end of each lease term, they can easily keep up with demand in their area. 


Texas Laws Regarding Rent Increase, Notices, and Fees

Texas is unique in that landlords do not need to provide notice before raising the rent. However, it is typical in the state to give at least 30 days before increasing the rental rate on month-to-month or yearly leases. 


Texans are also not limited to how often they increase rent or the rate for late fees and bounce check fees. This provides a greater incentive for tenants to pay rent promptly to avoid high late fees. However, it is important to list these fees in the lease agreement to avoid litigation for claims of unlawful retaliation.


While it may seem like Texas landlords have complete freedom, they earn it at a price. Texas landlords are required to maintain a habitable unit and respond to maintenance requests within seven days, much shorter than many states' requirements. In addition, if the maintenance request is not answered, the tenant may make the repair themselves and deduct the expenses from the rent. 


Cities With Rent Control In Texas

Texas prohibits rent control at the state and local level, but there are certain exceptions for imposing rent control in a state of emergency. For example, if a city or municipality is experiencing a housing crisis, they may declare a state of disaster and impose rent control for a limited period of time. However, the governor must approve the ordinance before being put into effect. 


Average Rent In Texas

Despite its population boom, Texas only has the 17th highest average rent in the country at around $800 for a two-bedroom home or apartment. Average rates range between $615 for a studio apartment and $1,388 for a house or four-bedroom apartment. This is on par with most states across the U.S. but offers a competitive landscape for landlords who want to capitalize on high-quality rental properties in a growing market. 


Rent Smart With RentSpree

RentSpree helps you navigate the ever-changing landscape of residential and multifamily renting with a menu of tools for success. From our rental price calculator to marketing and tenant screening tools, we make property management for rentals in Texas easy. 


Get started with RentSpree today to learn more about our all-in-one rental platform and make the right choices for your rental pricing. 


Cap Rate Calculator

rentspree illustration of calculator

How to use

Enter information in the boxes below to calculate the comparative value of a piece of property in order to determine if it would be a good investment for you.

Property Value

Current market price or listed value
$

Yearly earnings

Anything you make a profit from that has to do with the property
$
$
$
Total A:

$

0.00

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Yearly Expenses

Anything you make a profit from that has to do with the property
$
$
$
$
$
$
Total B:

$

0.00

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Cap rate

0.00

%

Cap rate

$
$

0.00%

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Commission Calculator

How to use

Enter information in the boxes below to calculate the comparative value of a piece of property in order to determine if it would be a good investment for you.

Property Price

$

Commission Percentage

%
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Total Commission

$

0.00

Commission for Each Agent

$

0.00

Total Amount Seller Receives

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0.00

Rent to Income Ratio Calculator

How to use

Enter information in the boxes below to calculate the comparative value of a piece of property in order to determine if it would be a good investment for you.

Rent-to-Income Ratio Calculator

$
$
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Rent-to-Income Ratio:

0

%

Move-in Move-out Calculators

Move-In Calculator

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1st Month's Prorated Rent:

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0.00

Additional Move-In Costs (optional)

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Total Move-In Cost:

$

0.00

Move-out Calculator

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Move-Out Prorated Rent:

$

0.00

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