What must landlords do regarding the management of security deposits?

Landlords are required to account for security deposits within a specified timeframe as per Texas law. This means that after a tenant vacates the rental property, the landlord must provide an accounting of the security deposit along with any deductions made for repairs or unpaid rent. In Texas, this accounting must typically be provided within 30 days of the tenant moving out.

This requirement ensures that tenants are informed about how their security deposits have been handled, promoting transparency and fairness in the rental process. It helps to prevent disputes over the return of deposits, as both parties have a clear record of any issues and repairs that may have impacted the return amount.

Other options do not align with the legal requirements in Texas. While returning deposits upon request might seem sensible, it implies an immediate return without accounting for any necessary deductions. Investing security deposits in interest-bearing accounts is not a legal requirement in Texas, nor is depositing them in a trust fund, both of which may not reflect standard practices for all landlords. Therefore, the correct focus is on the need for landlords to provide a timely and clear accounting of the security deposit after the tenant's lease ends.