Texas HB2901 limits the maximum security deposit for residential leases to one month's rent.

Texas HB2901 amends the Property Code to redefine a security deposit as any advance of money intended to secure performance under a lease, excluding rental application deposits or advance rent payments. The bill sets a cap on the security deposit amount, restricting it to one month's rent for the dwelling. This amendment applies only to leases entered into or renewed after the bill's effective date of September 1, 2025. Pre-existing leases remain governed by previous laws.

Texas HB2901 limits the maximum security deposit for residential leases to one month's rent.

Texas HB2901 amends the Property Code to redefine a security deposit as any advance of money intended to secure performance under a lease, excluding rental application deposits or advance rent payments. The bill sets a cap on the security deposit amount, restricting it to one month's rent for the dwelling. This amendment applies only to leases entered into or renewed after the bill's effective date of September 1, 2025. Pre-existing leases remain governed by previous laws.