bill capping rental application fees at processing cost

The text as introduced · 317 words

89R5684 SCR-D

By: Simmons
H.B. No. 2905

A BILL TO BE ENTITLED

AN ACT

relating to rental application fees; providing an administrative

penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter I, Chapter 92, Property Code, is

amended by adding Section 92.356 to read as follows:

Sec. 92.356. APARTMENT COMPLEX APPLICATION FEES. (a) In

this section:

(1) "Apartment complex" means five or more dwellings

in one or more buildings that are owned by the same owner, located

on the same lot or tract, and managed by the same owner, agent, or

management company.

(2) "Commission" means the Texas Workforce

Commission.

(b) A landlord of an apartment complex or the landlord's

manager or agent may not charge an application fee to an applicant

in an amount greater than the reasonable costs of processing the

applicant's rental application and screening the applicant's

eligibility according to the landlord's tenant selection criteria

made available under Section 92.3515.

(c) A landlord of an apartment complex or the landlord's

manager or agent that charges an application fee shall:

(1) file with the commission a detailed disclosure of

the fee, including the costs of processing the rental application,

screening an applicant, and any other costs; and

(2) at the time an applicant is provided with a rental

application and before accepting an application fee, provide to the

applicant the detailed disclosure of the fee described by

Subdivision (1).

(d) If the commission finds that a landlord of an apartment

complex or the landlord's manager or agent has violated this

section, the commission may assess an administrative penalty of:

(1) $1,000 for a first violation; and

(2) $2,000 for a second or subsequent violation.

SECTION 2. The changes in law made by this Act apply only to

an application fee charged on or after the effective date of this

Act.

SECTION 3. This Act takes effect September 1, 2025.