TX HB3497

Expands the legal definition of "security deposit" in Texas Property Code to include up-front or recurring fees paid to landlords or third parties to cover future damages or lease violations

Classifies fees charged to tenants based on their eviction history or credit history as security deposits, excluding standard application fees

Broadens the existing security deposit definition to explicitly include money intended to secure payment for future damage to leased premises

Applies only to residential leases entered into or renewed on or after the effective date; existing leases remain governed by prior law

Takes effect immediately with two-thirds legislative vote, otherwise September 1, 2025