Security Deposit is not 1 month's rent in TX?

[Bolanle Ogunmakin]

Hello All,

I recently moved to Midland, TX from Washington DC where I own a four-plex. The standard security deposit there is one month's rent and that's what I've always charged my tenant. My husband and I just purchased a duplex here in Midland. I added the Security Deposit as one month worth of rent in the ad and my husband shared that this has not been his experience in TX. The two rentals that he lived in before I moved here had the security deposit as a lower amount than the one month rent.

I'd like to get some clarification on this as I do not want the SD to be a barrier in getting applicants. Is the SD a certain percentage here? Thanks. 

[Jacobe Kendrick]

Hello @Bolanle Ogunmakin, I'm a Realtor/investor in Midland.  the standard is one month's rent, however I usually do 1/2 of 1 month's rent for my own personal rentals and I encourage my clients to do the same.  In my opinion the deposit you charge should depend on your rental.  What is it going to cost to get the property back to market once your tenant moves out.  If you think it will be minimal then I would charge less.  You also have to think about the deposit being a barrier for renters that you may not want renting your property.  I would think of a deposit more of a tool and try to make it more functional.  I hope this helps.  If you ever need any more help or if you are looking to pick up more properties, feel free to reach out.  There are some good deals out here in Midland now.