Texas Room Rentals 101
Room rental agreements are a common tenancy arrangement in Texas. These agreements can range from a very informal arrangement between family members or friends to highly-detailed agreements. The agreement that a landlord uses will depend on their own preferences and several other factors.
In most cases, a room rental agreement in Texas is used when a tenant is renting only a room in a multi-bedroom dwelling . Because more than one tenant may be renting a room in the dwelling, room rental agreements frequently contain more terms than a simple residential lease agreement. These obligations include the following:
Because of the number of terms in a room rental agreement, both the tenant and the landlord should read any room rental agreement carefully before signing. It’s critical to make sure that both parties agree to the terms of the agreement. Any changes that need to be made must be agreed upon by both parties and written into the agreement before they sign it.
Texas Rental Agreement Requirements
In addition to the basic elements of a room rental agreement, landlords and tenants in Texas must comply with certain legal requirements unique to the state.
Security Deposits
Tex. Property Code § 92.103 requires a landlord to hold a security deposit in an interest-bearing escrow account or be deposited in a trust account in a financial institution for the tenant. The landlord may not commingle the deposit and must segregate or account for the funds in a manner permitting the landlord to comply with the law. The landlord may not withhold a tenant’s security deposit during or after the lease term to make deductions for damages that are normal wear and tear. "Normal wear and tear" refers to deterioration that occurs without negligence, neglect or abuse of the premises by the tenant or members of the tenant’s household or a guest or invitee of the tenant – such as depreciation due to aging or defective design, manufacturing, installation or materials. A "landlord’s lien" is an interest in real or personal property to secure payment for rent or a deposit. The Texas Landlord’s Lien Act (§ 54.041 et seq.) permits a landlord to take a landlord’s lien against the tenant’s property if authorized in the rental agreement. A landlord’s lien is a right to possession of the tenant’s property without judicial process to satisfy the landlord’s lien for rent or for a deposit made by a tenant for services, if authorized by the rental agreement. In Texas, a landlord may not obtain a lien on the tenant’s personal property unless the property is used or intended to be used solely in the residential dwelling, the rental agreement is in writing, and the rental agreement contains a statement in boldface type specifically describing the property subject to the lien. Tex. Property Code § 70.002.
Notice
In Texas, a landlord generally must provide a tenant with notice of the landlord’s intent to enter the dwelling (or another common area agreed to in the lease) at any time during all days of the year other than between the hours of 9:00 p.m. and 8:00 a.m. Tex. Property Code § 92.009. A landlord or its agent may not enter a dwelling without the tenant’s consent during the hours specified above, unless in an actual or apparent emergency, or if the tenant has abandoned or surrendered the premises. Id.
Rekeying
In Texas, if a tenant requests to change or rekey the locks in the unit, landowners must do so at no cost, unless the landlord is given notice in writing that the tenant intends to change or rekey the locks by a specific date and fails to do so by that date. Id., § 92.151.
Evictions
In Texas, a landlord must provide a tenant with three days’ notice before filing an eviction case, unless the tenant is evicted pursuant to a termination under the Texas One Day Notice to Vacate Statute, which permits a landlord to file an eviction case after providing a tenant with a single day’s notice to vacate for certain criminal offenses. Tex. Property Code § 92.251.
Landlord Disclosure
The Texas Commission for the Deaf and Hard of Hearing provides a fact sheet detailing all of the disclosures required of landlords regarding accessibility if they have provided any disability-related changes to their property.
Key Provisions for Room Rental Agreements
For Texas slightly less than half (49%) of all adults live in rentals and most room rentals are covered by the Texas Property Code Chapter 92. The Chapter is about 10 pages long so it is very important to know the key terms in your lease.
In any rental agreement, a variety of clauses help define the expectation of both parties.
Rent Terms
This clause offers clarity on rent due dates, rent payment procedures, rent increases, and the duration of the rental agreement.
Holding over.
Security deposit.
Maintenance and repairs to the premises.
Animals.
Understanding Roommate Rights and Duties
The rights and responsibilities of tenants under a Texas room rental agreement extend beyond paying rent and treating the home with respect. Texas law also requires landlords to allow tenants quiet enjoyment of the home and to maintain the home in a habitable condition.
Tenants have the right to:
They also have a right to safety in their home. If a room rental home contains certain fire safety features, such as fire extinguishers, smoke alarms, and lights, the landlord must maintain those features. If they don’t the tenant can sue for $500 in damages and also get a court order to have the features repaired or installed.
The room rental agreement may impose other responsibilities on the tenant to keep the premises in good condition. Tenants must perform the duties imposed by the lease, maintain the parts of the premises they control, and not damage or deface the property.
Landlords have a responsibility under Texas law to:
In addition to these duties, the landlord has a duty to make repairs to keep the home in good working condition and to hire a licensed exterminator if there are pest problems. They also must provide smoke alarms, carbon monoxide alarms, and a fire extinguisher if the home has natural gas.
Most room rental agreements prohibit tenants from making any alterations to the premises without permission of the landlord, including painting rooms or hanging items on walls.
Texas Landlord Rights and Protections
Landlords, too, have certain prerogatives that must be recognized in order for the landlord/tenant relationship to proceed properly. Fortunately, in Texas, landlords have rights guaranteed by common law and certain statutory protections.
In general, a landlord may:
A landlord may not, among other things:
As with others contract disputes, enforceability of an agreement is always presumed by the Court, unless there is sufficient evidence to overcome that presumption by clear and convincing evidence. For example, if a tenant believes that the rent being charged is unreasonable, a Court will presume that the rent agreed to was, at the time the lease agreement was entered into, a fair and reasonable amount, unless the tenant can demonstrate otherwise. For example, if a tenant believes that the premises rented is not "habitable" as defined in Texas law, and therefore the amount of rent agreed upon is null and void, a Court will presume that the premises are habitable as long as the following conditions exist in the alleged "uninhabitable" premises:
A landlord may not terminate the room rental agreement or fail to renew it because the resident has asserted rights under the room rental agreement or the laws of this state or because the resident has organized, authorized, or participated in either a tenant organization or tenants’ union. Tex. Prop. Code § 94.056(1). This means that a landlord may not retaliate for a tenant’s efforts to engage in lawful conduct. If a landlord fails to comply with this law, a tenant may recover one month’s rent or $500, whichever is greater, actual damages, and attorney’s fees.
If a landlord deprives a tenant of the use and enjoyment of the premises, after giving reasonable notice and a reasonable opportunity to cure, and the landlord does not cure the deficiency, a tenant cannot terminate the agreement, move out, and still hold the landlord to the agreement. The tenant could proceed against the landlord if the landlord had caused damages to the premises before breaching the agreement, but a court would not force the landlord to accept rent or allow the tenant to terminate the agreement. Tex. Prop. Code § 94.255. A tenant has a right to sue the landlord for damages caused by the landlord’s violation of the landlord’s duties.
The noncompliance of the landlord with a room rental agreement or a duty imposed by a Texas statute, if materially affecting the health or safety of the tenant, gives rise to a defense to an action for possession based upon nonpayment of rent. Tex. Prop. Code § 94.257(a). If a tenant has taken measures to cure the violations, but the landlord has yet to make the repairs, a tenant may recover damages caused by a landlord’s noncompliance if the tenant has taken reasonable steps to terminate the room rental agreement. Tex. Prop. Code § 94.257(b).
At its core, a landlord/tenant relationship is a matter of contract. It is important for the landlord to understand both what remedies are available if a tenant is in breach, and what protections exist, and what steps must be taken, if the landlord is in breach.
Tailoring the Agreement to the Living Arrangement
Every landlord has unique terms they would like to add to their lease in order to protect their investment. However, for the most part, landlords receiving rent from one or two sleeping rooms from a tenant need to focus on the basics:
In addition to these basic provisions, the Texas Room Rental Act also lists landlord requirements. Most of these terms are also found in leases that are not room rental agreements. Then, there are all the potential problems when renting out an extra room. Are smoking and other drug use allowed? Who will use the washer and dryer? Is a TV allowed in the bedroom? Will you be friends or friendly? What about unwanted guests? Friends are one thing but spouses, children, and ex-wives are another matter entirely. When it was just one person renting out a bedroom in their house, it wasn’t difficult to agree to ground rules . However, now that it is a corporate endeavor, ground rules are made to protect the investment made by the owner and to limit the landlord’s liability. If the home is being rented out as a furnished unit to a business traveler, the terms may be very different. For instance, check-in and check-out times, cleaning terms, and providing an affordable laundry service might be very important to the business traveler. When the room is rented out as Airbnb or other short-term rental, the terms are even more detailed and could include ground rules for using the pool or common areas as well as terms for late-night noise and parties. Ground rules should be discussed with your lawyer and put in writing to avoid any disputes down the road. Always remember that the old adage "good fences make good neighbors."
Terminations, Evictions and the Resolution Process
The majority of room rental agreements will incorporate guidance about how to resolve disagreements that arise between the parties. Common methods of dispute resolution include mediation, arbitration, and litigation. Room rental agreements between more than two parties (such as a landlord and two or more tenants) including mediation and arbitration provisions will often incorporate one set of procedures to address disputes arising under the room rental agreement. It is important to understand how the procedures work when taking on a roommate. This section will focus on mediation and arbitration with particular emphasis on costs, who will pay to mediate any disputes, whether the mediation will be held in the same city and state as where the room rental agreement is entered into, and how long any mediation proceeding will last.
It is common for parties to see dispute resolution procedures in room rental agreements requiring the parties to undergo mediation, then arbitration, and finally litigation if the disagreement is not otherwise resolved. Under these circumstances, the parties may mutually agree to waive mediation in favor of arbitration and/or litigation (except for disputes arising out of warranty of habitability). When such waiver is made, any dispute will be decided by an arbitrator, even though litigation could be pursued. Arbitration may later be mandatory, depending on the nature of the dispute.
Unfortunately, not all arbitration provisions permit or require discovery, including depositions or document requests, with respect to the dispute being resolved. This means that it may not be possible for you to get information from your former roommate about why you are not getting along before the arbitrator is selected. Employers may require mandatory arbitration under an employment contract, but other parties may be limited to agreeing to participate in arbitration. Because arbitration provisions differ in terms of whether certain procedural rights are waived, it is important not only to understand the specific terms of your agreement with the party you are living with, but also what rights you may or may not have under Texas law. The individual circumstances may further suggest what rights you need to inquire about prior to entering into any room rental agreement.
Guidelines for Crafting a By-the-Room Agreement
When drafting a room rental agreement in Texas, landlords should aim to create a clear and comprehensive document that outlines all aspects of the landlord-tenant relationship and addresses potential issues before they arise. Here are some best practices and tips to follow to ensure your room rental agreement is legally sound and detailed:
- Be thorough: Specify in detail the terms of the rental, including rent payment method, late fees, utilities, property rules, and maintenance responsibilities. Leave no room for interpretation or misunderstanding.
- Cover all contingencies: Consider adding clauses for situations such as default, subletting, parking, pets, smoking, and property use restrictions.
- Use clear and concise language: Avoid jargon and ambiguous terms. Clearly define all terms used in the agreement.
- State the duration clearly: Specify the length of the rental term, whether it is month-to-month or for a fixed duration, and the process to renew or terminate.
- Follow state law: Ensure your agreement is in compliance with Texas landlord-tenant law, including security deposit handling and notice requirements.
- Include mutual agreement and signature: Both parties should sign the agreement, confirming their understanding and acceptance of all terms. Having the agreement notarized is also recommended.
- Consider legal counsel: Seek the assistance of an attorney experienced in Texas landlord-tenant law to review the agreement before presenting it to the tenant.
Additional Resources and Tools for Texas Property Owners
In addition to the considerations already covered in this article, it is also important to understand any particular state or local laws that may apply to Room Rental Agreements in the areas where you operate. In Texas, there are a variety of organizations that provide sample contracts and helpful how to articles that address issues surrounding roommate rental agreements. For example, the Texas Apartment Association, or TAA, provides sample Roommate Addendum and Room Rental Agreement templates that can be found on its website. Additionally, the organization has developed a number of educational resources covering landlord/tenant law and how to apply it to everyday situations assuming that the user has a basic understanding of state law on these subjects. The resources are not comprehensive, typically focus on a particular topic and assume that the reader has a basic understanding of the subject matter. The Texas Apartment Association has a number of regional apartment associations within Texas. Each of these associations is able to provide information from a local perspective for their respective city or region . It is important for landlords to determine whether local ordinances and rules are in place and how they may affect the terms that can be included in a Room Rental Agreement. The Dallas Apartment Association is another organization that provides information relevant to Room Rental Agreements in the Dallas area and surrounding communities. It is also a good reference tool to know the difference between a lease and rental contract. In basic terms, a lease is an agreement to occupy a dwelling over a specified period of time. When a specific time period is not included, a rental contract is established. In either case, the resource is the Texas Property Code. The Texas Apartment Association has a great page that identifies some of the relevant resources that Landlords can cross reference with the Texas Property Code when drafting a Room Rental Agreement. The Texas Apartment Association includes links on its website to other organizations, articles by local associations, Texas Apartment Magazine articles and Texas Apartment Association publications. This site is a great central hub for landlords and property owners looking for information on Room Rental Agreements in Texas.
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