Bill > HB3198

This bill modifies Texas property law to enhance transparency and fairness in residential rental application processes. It requires landlords to provide written notice of tenant selection criteria before collecting an application fee, specifying the grounds for potential application denial such as criminal history, rental history, income, credit history, and application completeness. The bill introduces a new requirement that landlords must inform applicants they can provide evidence challenging or mitigating negative aspects of their background, such as inaccuracies in criminal history or proof of rehabilitation. Additionally, the bill establishes financial penalties for landlords who fail to comply: $100 plus three times the wrongfully retained amount for bad faith failure to refund application fees, and a $500 penalty for violating the new disclosure requirements. The changes will apply only to rental applications submitted on or after September 1, 2025, giving landlords time to adjust their practices to the new legal standards. The goal appears to be providing more transparency and a fairer process for potential tenants by requiring upfront disclosure of screening criteria and allowing applicants an opportunity to provide context or challenge negative information.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3198