It’s not news that some tenants have withheld rent from their landlords for various reasons, but can they actually do that? The answer is: No, they cannot withhold rent, as no statute allows tenants to do so legally. However, it’s not always as simple as that. After all, there’s a reason why they’re withholding rent in the first place.
Key Highlights:
- Texas law does not allow tenants to withhold rent, but they may legally deduct repair costs from rent in specific health or safety situations under strict guidelines.
- Tenants must give proper maintenance or repair requests and wait for the landlord’s response before making qualified repairs and deducting up to $500 or one month’s rent—whichever is greater.
- Common reasons for withholding rent include uninhabitable conditions, lack of essential utilities, or financial hardship, not all of which are legally justified.
- Landlords can prevent rent issues by conducting regular inspections, setting fair rent prices, screening tenants thoroughly, and promptly handling maintenance requests.
- If rent is withheld, landlords should try clear communication, offer solutions, consider mediation, or issue an eviction notice if necessary.
Rent Deductions
Tenants may not be able to withhold rent, but can legally deduct from the amount in particular situations. As you might already know, landlords are required to address maintenance or repair requests made by the tenants, especially if it concerns their health or safety, as per Texas Property Code Section 92.056.
How Much Can Tenants Deduct From the Rent?
If you fail to make the necessary changes, the tenant may remedy the situation themselves, but they can deduct the costs from their rent. The mentioned deductions within the month should not exceed $500 or one month’s rent, whichever is greater.
When Can Tenants Deduct From Rent?
The tenant can conduct their own repairs when the landlord fails to remedy the condition within the given timeframe after a notice has been given. The notice must be sent by certified mail, registered mail, or another form of mail that allows tracking of delivery from the United States Postal Service or a private delivery service.
What Repairs Are Mandatory?
All repairs are mandatory, excluding those that are caused by normal wear and tear. The landlord does not have a duty to repair damages that are caused by the tenant, a lawful occupant in the dwelling, a member of the tenant’s family, or a guest within the premises.
Reasons Tenant May Withhold Rent
- Uninhabitable Conditions: Issues like pest infestation, mold, or sewage backups may keep the tenant from paying rent to pressure landlords to take action. Furthermore, the health risks caused by this issue can lead to legal action against the property owner.
- Lack of Essential Utilities: Like most states, Texas landlords are required to provide a living space that includes working plumbing, HVAC, and electric systems to create a habitable living condition.
- Lack of Funds: Most times, tenants are withholding rent because they do not have the money to pay it. You can either provide a grace period, refer them to rental assistance programs, or send an eviction notice.
How You Can Avoid Rent from Being Withheld
Conduct Regular Inspections
Routine inspections can help you ensure that everything in the rental unit is in good working condition. That includes the furnishings and appliances. It will also help you identify problems during the early stages and avoid more costly repairs due to negligence.
Set the Right Rent Price
Rent increases are sometimes warranted, but be sure to set an amount that your current tenants can still afford without compromising your rental income. Too high a price and you risk lease terminations. Too low and you could end up with a negative cash flow. Rental analysis and market research can help you determine the right rent price for you and your tenants
Use a Thorough Tenant Screening Criteria
Just like routine maintenance, tenant screening is a proactive measure to ensure smooth operations. Find tenants who can communicate amicably with you when issues arise, protect your property, and follow lease rules. Most use basic criteria like credit score, rental history, employment verification, references from past landlords, and debt-to-income ratios.
Respond to Maintenance and Repair Requests Promptly
Delays in maintenance and repairs are usually the beginning of tenant dissatisfaction. Address the issue as soon as you receive a request. To improve communication channels, you can use a tenant portal or property management software. Alternatively, you can hire a property manager to oversee your rental business and provide quick responses.
What You Can Do to Resolve the Issue
When prevention fails, it’s important that you are still prepared to fix the problem when it happens. Here are some ways you can get the tenant to pay rent or keep the issue from getting worse.
- Proper Mediation: It’s not often said, but it’s your responsibility as a landlord to deescalate situations when tensions rise. If a tenant believes that they shouldn’t pay rent because you fulfill your landlord duties, you should know how to handle it without matters getting more heated. If necessary, hire a third-party mediator to resolve the dispute.
- Give What the Tenant Needs: If the mistake is on your end or if it’s simpler to resolve the conflict by giving the tenant what they need, then it may be better to opt for the obvious solution.
- Communicate: Personally talking to the tenant might just do the trick. Ask them why they’re withholding rent and explain politely why they cannot do that.
- Issue an Eviction Notice: When all efforts fail, you can file an eviction notice. It will either urge the tenant to pay, or you can find a new tenant who will follow the lease rules.
Being Proactive Through Professional Property Management
Other than a lack of funds, the most common reason why tenants refuse to pay rent is because of dissatisfaction, which stems from negligent and inefficient property management. Being proactive comes in many forms, including hiring a professional property manager who can be attentive and efficient when overseeing your rental business.
Austin Property Management covers its bases by being proactive and reactive. Preventing issues from happening and strategically tackling them when they do. We aim to protect your investment property and maximize its potential through expert planning and execution.
Leave your worries behind. Contact us today and learn more about our services!
