landlords must show fees right next to the rent

The text as introduced · 1,063 words

89R6003 ATP-F

By: Gates
H.B. No. 4305

A BILL TO BE ENTITLED

AN ACT

relating to disclosure of rent and certain fees and charges by a

landlord.

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

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

amended by adding Section 92.0115 to read as follows:

Sec. 92.0115. DISCLOSURE OF RENT AND CERTAIN FEES AND

CHARGES. (a) A monthly fixed, recurring fee to be charged by a

landlord to a tenant during the lease term as a condition of leasing

a dwelling must be disclosed by the landlord with or alongside the

rent in a lease quote, a rental application, and any advertisement

or listing that includes the rental price for the dwelling. For

purposes of this subsection, a fixed, recurring fee is charged to

the tenant in the same amount each month and includes valet trash

fees, insurance fees, pest control fees, Internet fees, cable fees,

amenity fees, washer and dryer usage fees, and fees for services

provided by a third party at the direction of the landlord.

(b) The lease must also state clearly and conspicuously on

the first page the following fees and charges that the tenant is

responsible for paying under the lease:

(1) the monthly rent without any fees described by

Subsection (a);

(2) an itemized list of each fee described by

Subsection (a);

(3) an itemized list of each fixed or one-time charge

or fixed fee not included under Subdivision (1) or (2), including

pet fees and fees for goods, services, or amenities that the tenant

has opted to receive;

(4) the security deposit amount or, if the tenant

opted to pay a fee in lieu of a security deposit under Section

92.111, the amount of the fee and the disclosure required under

Section 92.111(b)(2);

(5) an itemized list of goods, services, or amenities

with variable charges, including any utilities with variable

charges;

(6) an itemized list of charges for any lease

violation, including holdover fees;

(7) any late fee charges; and

(8) any returned check or rejected payment fee.

(c) Any change to a fee or charge described by Subsection

(a) or (b) must be agreed to in writing by the landlord and tenant.

A tenant may not waive this subsection.

(d) In addition to the disclosures required under

Subsection (a), a lease quote and a rental application must clearly

and conspicuously state:

(1) an itemized list of charges for any optional

goods, services, or amenities the landlord is offering to the

tenant in the rental of the unit and information on the tenant's

right to receive housing even if the tenant does not opt into

receiving the good, service, or amenity;

(2) an itemized list of goods, services, or amenities

with variable charges that the landlord will require the tenant to

pay during the lease term as a condition of leasing the dwelling;

(3) an itemized list of utilities for which the tenant

is responsible, including whether the utility payment is made to

the landlord or a third party;

(4) an itemized list of any nonrefundable charges

assessed by the landlord as part of the application process or

before the execution of a lease, including application fees, hold

fees, and processing fees; and

(5) the security deposit amount and, if the landlord

offers a tenant the option of paying a fee in lieu of a security

deposit under Section 92.111, the information required to be in a

written notice under Section 92.111(b).

(e) A landlord may not assess a tenant a fee or charge that

is not disclosed in the lease as required by Subsection (b). A

landlord who violates this subsection is liable to the tenant for an

amount equal to the sum of $100, three times the amount of a fee or

charge assessed in violation of this subsection, and the tenant's

reasonable attorney's fees.

(f) A landlord may not file an eviction proceeding against a

tenant for nonpayment of a fee or charge that is not disclosed in

the lease as required by Subsection (b).

(g) A prospective tenant may make a written demand to a

landlord requesting the return of an application fee, deposits, and

any other money paid in relation to the rental of a unit if:

(1) the landlord's rental application for the unit

does not comply with the disclosure requirements in Subsection (d)

or the amounts for any fixed fees or charges listed in the lease for

the unit exceed the amounts listed for those fees or charges in the

application;

(2) the prospective tenant makes the written demand

not later than the 14th business day after the date on which the

prospective tenant receives the lease for the unit; and

(3) at the time the prospective tenant makes the

written demand, the prospective tenant has not signed the lease or

taken possession of the unit.

(h) If a prospective tenant makes a written demand in

accordance with Subsection (g), the landlord shall return all money

the prospective tenant paid the landlord not later than the fifth

business day after the date on which the landlord receives the

written demand. A landlord who violates this subsection is liable

to the prospective tenant for an amount equal to the sum of $100,

three times the amount of the fee or charge that was not disclosed

in accordance with this section, and the prospective tenant's

reasonable attorney's fees.

(i) An advertisement or listing made in violation of

Subsection (a) is a false, misleading, or deceptive act or practice

under Subchapter E, Chapter 17, Business & Commerce Code, and is

actionable under that subchapter. A landlord who demonstrates a

good faith effort to comply with the disclosure requirements may

present evidence that a violation was unintentional or resulted

from a clerical error to mitigate penalties.

(j) This section does not affect or alter a remedy at law or

in equity otherwise available to a tenant.

(k) A provision of a lease that purports to waive a right or

exempt a party from a liability or duty under this section is void.

SECTION 2. Section 92.0115, Property Code, as added by this

Act, applies only to a fee or charge under a lease entered into or

renewed, or to be entered into or renewed, on or after the effective

date of this Act.

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