USA - TEXAS Law and Practice Contributed by: Brad Holdbrook, Mary Mendoza, Michael Coleman and James Barnett, Haynes and Boone, LLP
that go beyond normal wear and tear. Texas law prohibits landlords from retaliating against ten - ants who exercise their rights, such as reporting health or safety violations. COVID-19 Legislation During the COVID-19 pandemic, there were various temporary measures and moratoriums put in place to protect tenants from eviction and provide relief to property owners. How - ever, specific asset class distinctions related to COVID-19 legislation would have been part of broader federal and state-level emergency orders and not necessarily permanent changes to property law. These measures were typically designed to address the immediate impacts of the pandemic, such as financial hardship due to unemployment or health-related issues. It’s important to consult current state resources or legal advice for the most up-to-date information on any remaining COVID-19-related regulations It is crucial to note that many cities in Texas might have their own landlord-tenant laws that provide additional protections or regulations beyond state law. Cities like Dallas, Austin, San Antonio, and Houston may have specific ordi - nances that address rent control, eviction proce - dures, or other rental-related matters. Therefore, both landlords and tenants should be aware of the local laws that might affect their rights and responsibilities. 6.15 Effect of the Tenant’s Insolvency affecting real estate leases. Local Laws and Regulations In Texas, the impact of a tenant’s insolvency on their lease depends significantly on whether bankruptcy proceedings are initiated. Under the United States Bankruptcy Code, a tenant’s insolvency or bankruptcy does not automatically terminate an unexpired lease of real property.
This is because clauses in leases that allow for termination due to insolvency or bankruptcy are generally unenforceable. When a tenant files for bankruptcy, an automatic stay is put into place, preventing landlords from evicting the tenant or taking other actions like serving a notice to quit or prosecuting a pending unlawful detainer. This automatic stay is designed to halt all judgments and actions against the debtor’s property imme - diately upon the filing of a bankruptcy petition. 6.16 Forms of Security to Protect Against a Failure of the Tenant to Meet Its Obligations In Texas, landlords have several options for securing protection against a tenant’s failure to meet their obligations under a lease agreement. These measures are designed to mitigate risks such as non-payment of rent, damages to the property, or other breaches of the lease terms. Security Deposits Texas law does not impose a limit on the amount that can be charged for a security deposit, but it requires landlords to return the deposit minus any amounts used for cleaning and repairs within 30 days of lease termination for residen- tial leases and within 60 days for commercial leases. The security deposit can cover damages incurred because of lease breaches, unpaid rent, cleaning fees at the end of the lease, and other specified damages not considered normal wear and tear. Insurance Requirements The lease agreement may require tenants to obtain renter’s insurance. This insurance can provide coverage for the tenant’s personal property, liability in case of accidents within the rented premises, and possibly loss-of-use cov - erage, which can help both parties in case the property becomes uninhabitable due to covered
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