What is the penalty for not returning a deposit in Texas?
$100 plus 3x wrongfully withheld amount plus attorney fees under Tex. Prop. Code 92.109. Missing the deadline without written explanation creates a bad-faith presumption. The penalty is in addition to the wrongfully withheld deposit itself. Texas courts routinely hear deposit disputes in small-claims court, where landlords who missed the 30-day deadline without written explanation face a presumption of bad faith.
Source: Tex. Prop. Code 92.103
This is an informational answer based on Tex. Prop. Code 92.103 as of early 2026. It is not legal advice. Housing law changes year to year and local ordinances (especially in rent-controlled or rent-stabilized cities) can override or add to state law. For contested cases, consult a Texas-licensed attorney.