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Article #107: Texas Real Property Law for Commercial Landlords

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I have found that landlords generally written description and itemized list of
face the same set of issues and have the deductions on or before the 60th day
same set of questions pertaining to their after the date the tenant surrenders
rights, duties and obligations as possession is acting in bad faith.
landlords under Texas law. The answers to VII. Preventing Access to Leased Premises
these questions depend on whether A landlord may not intentionally prevent
residential tenants or commercial tenants a tenant from entering the leased
are involved. Although commercial and premises except with permission of the
residential property ownership and court unless such prevention results from
operation have some similarities, the (i) bona fide repairs, construction or an
differences are numerous and diverse emergency, (ii) removing the contents of
enough to justify separate treatment for the leased premises abandoned by a tenant
each area. This article is intended to or (iii) changing the door locks of a
discuss issues related to commercial tenant who is delinquent in paying at
property with commercial tenants only. least a part of the rent. The lease may
This article is my attempt to create a alter this provision.
quick and very general reference guide on VIII. Changing Lock Due to Delinquent
the rights, duties and obligations of Payments
commercial landlords and operators under If a landlord changes the door lock due
the Texas Property Code. It is by no to delinquent rent payments, the landlord
means complete, but hopefully is must place a written notice on the
informative enough to assist the reader tenant's front door stating the name and
in asking informed questions of legal address or telephone number of the
counsel and thus be more efficient and individual or company from which the new
economical while consulting legal key may be obtained. The new key is only
counsel. required to be provided during the
You should not take this article as legal tenant's regular business hours and only
advice, and I strongly urge you to seek if the tenant pays the delinquent rent.
competent legal advice for your specific The lease may alter this provision.
situation. The Texas legislature updates IX. Landlord's Removal of Property After
and passes new laws relating to landlord Abandonment by the Tenant
tenant issues on a regular basis. In A landlord may remove and store any
addition, Texas courts regularly property of a tenant that remains after
interpret these laws. Thus, the laws the premises has been abandoned. The
discussed in this article are in effect landlord may also dispose of the stored
as of December 2005. I have not assumed property if the tenant does not claim the
any duty or obligation to update this property within 60 days after the date
article beyond this date. the property is stored. The landlord must
I. Duty to Mitigate deliver by certified mail to the tenant
If a tenant abandons the leased premises at the tenant's last known address a
in breach of the lease, the landlord has notice stating that the landlord may
the duty to mitigate (lessen) the damages dispose of the tenant's property if the
that the landlord would experience as a tenant does not claim the property within
result of the abandonment. Thus, the 60 days after the date the property is
landlord should not let the premises lie stored. A lease may alter this provision.
vacant in hopes of being able to recover X. Abandonment by the Tenant
lost rents from the tenant. This duty to A tenant is presumed to have abandoned
mitigate damages may not be waived by the the premises if goods, equipment or other
tenant, so any provision in the lease property, in a substantial enough amount
that tries to waive this duty or exempt to indicate a probable intent to abandon
the landlord from liability is void. the premises, is being or has been
II. Security Deposit removed from the premises and the removal
A security deposit is any advance of is not within the normal course of the
money, other than a rental application tenant's business. The lease may alter
deposit or an advance payment of rent, this provision.
that is intended primarily to secure XI. Interruption of Utilities
performance under a lease. If the tenant pays for utility services
III. Retention of Security Deposit directly to the utilities companies, the
Before returning the security deposit, landlord may not interrupt or cause the
the landlord may deduct from the deposit interruption of such services unless the
damages or charges for which the tenant interruption results from bona fide
is obligated under the lease or resulting repairs, construction or an emergency. A
from a breach of the lease. However, lease may alter this provision.
normal wear and tear (does not include XII. Removal of Doors, Windows, Locks,
deterioration that results from Hinges, Etc.
negligence, carelessness, accident or A landlord may not remove a door, window,
abuse) may not be withheld from the attic hatchway, lock, hinge, hinge pin,
security deposit. doorknob or other mechanism connected to
If the landlord retains any portion of a door, window or attic hatchway cover
the security deposit, the landlord must from the leased premises. Additionally, a
refund the balance of the security landlord may not remove furniture,
deposit and give the tenant a written fixtures or appliances furnished by the
description and itemized list of all landlord from the leased premises.
deductions. However, this description and However, the landlord may remove these
itemized list is not required if the items for a bona fide repair or
tenant owes rent and no controversy replacement, which must be promptly
exists concerning the amount of rent performed. A lease may alter this
owed. The refund and written description provision.
and itemized list of all deductions is XIII. Landlord May Terminate Lease Due to
not required until the tenant gives the Public Indecency Conviction of Tenant
landlord a written statement of the A landlord may terminate a lease signed
tenant's forwarding address for the or renewed after June 15, 1981 if the
purpose of refunding the security tenant or occupant uses the property for
deposit. However, failure to provide a an activity for which the tenant,
forwarding address does not cause the occupant or any of their agent or
tenant to forfeit its right to receive a employee is convicted of public indecency
refund or a description of deductions. (prostitution, promotion of prostitution,
IV. Refund of Security Deposit display or distribution of obscene
A landlord must refund the security materials, sexual acts with persons under
deposit not later than the 60th day after the age of 18, etc.) and such person has
the date the tenant surrenders the exhausted or abandoned all avenues of
premises and provides notice of the direct appeal from the conviction. Notice
tenant's forwarding address. of termination must be by written notice
V. Change of Landlord/Owner and the within six months after the right to
Security Deposit terminate arises. The landlord obtains
The new owner or landlord of the leased the right to possess the property on the
premises is liable for the return of the 10th day after the date of notice is
security deposit starting from the date given.
title to the leased premises is acquired, XIV. Notice Requirement Prior to Eviction
except where the new owner acquired the The landlord must give a tenant who
premises by foreclosure through a real defaults or holds over beyond the end of
estate mortgage. However, the former the term at least three day's written
landlord or owner remains liable for the notice to vacate the premises before the
security deposit received while the landlord files a forcible detainer suit,
person was the owner or landlord until unless the parties contracted for a
the new owner delivers to the tenant a shorter or longer period of time in a
signed statement acknowledging that the written lease or agreement.
new owner has received and is responsible The notice to vacate must be given in
for the tenant's security deposit and person or by mail at the premises in
specifying the exact dollar amount of the question. If notice is delivered in
deposit. person, it may be by personal delivery to
VI. Liability of Landlord for Security the tenant or any person residing at the
Deposit premises who is 16 years of age or older
A landlord who in bad faith retains a or personal delivery to the premises and
security deposit is liable for an amount affixing the notice to the inside of the
equal to the sum of $100, three times the main entry door. Notice by mail may be by
portion of the security deposit regular mail, by registered mail or by
wrongfully withheld, and the tenant's certified mail, return receipt requested,
reasonable attorneys fees incurred in a to the premises in question. The notice
suit to recover the deposit. It is period starts from the day on which the
presumed that a landlord who fails to notice is delivered.
return a security deposit or to provide a






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