Q: In Texas, is it legal to not refund an application deposit after denying a rental application?
I have found that section 92.351 defines an application deposit that is refundable. I am trying to find law to cite and attempt to just get my deposit back from an apartment complex attempting to claim they will not refund this. I made it clear and understood that the application fee is lost and non-refundable however it cannot be lawful to refund my application deposit.
A: Section 92.351(1-a) defines an application fee as a nonrefundable fee. Section 92.3515(a) requires the landlord to give the tenant notice of the landlord's tenant selection criteria. If the landlord fails to give that notice, the application fee (despite being called nonrefundable) or an application deposit must be refunded in accordance with Section 92.3515(e). If the landlord fails to do so, it may be liable under Section 92.354 for $100 plus three times the amount of the fee plus attorney fees. Usually the amounts involved are well below $20,000, so most applicants wrongfully denied a refund would simply file suit in small claims court without an attorney.
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