Bill > SB603

This bill adds a new section to the Texas Property Code that restricts landlords from charging tenants late fees or penalties related to the landlord's own utility payment issues. Specifically, the bill prohibits landlords from collecting fees incurred by the landlord due to their own nonpayment or late payment to a utility company for utility services provided to the tenant. However, the bill includes an important exception: if a tenant is delinquent in paying the landlord for utility services, the landlord can still collect late fees. The bill defines "landlord" broadly to include managers and agents, and clarifies that this restriction does not prevent landlords from collecting other legitimate late fees or charges owed under the lease agreement. The new law will only apply to leases entered into or renewed on or after September 1, 2025, giving landlords and property managers time to adjust their practices. This legislation aims to protect tenants from being penalized for their landlord's utility payment issues while maintaining the landlord's ability to collect legitimate fees for tenant nonpayment.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB603