Texas Tenant Screening Laws 2025: Management Compliance Guide

Texas Tenant Screening Laws 2025: What Owners and Managers Need to Know

Texas changed the rules on tenant screening this year. If you're managing property in Lubbock or across West Texas, you need to know what's different—and what you're legally required to do before you deny an applicant or cash an application check.

This isn't about bureaucracy. It's about protecting your business and treating applicants fairly. The updates are straightforward once you break them down.

Why the Rules Changed

Texas rental markets are growing fast—Lubbock included. More demand means more scrutiny. Lawmakers want to make sure qualified renters don't get shut out unfairly, and that landlords have clear, enforceable standards to work from.

The 2025 updates focus on transparency and consistency. You can still screen thoroughly. You just have to show your work.

What Changed in 2025

Written Disclosure Is Now Mandatory

Before you accept an application or collect a fee, you must give applicants a written list of your screening criteria. That means spelling out your credit score minimums, income requirements, rental history standards, and how you handle criminal background checks.

The applicant has to sign a form acknowledging they got this information. If they don't sign, you can't legally deny them based on those criteria later. Keep copies of everything.

Application Fees Must Reflect Real Costs

You can charge an application fee, but it has to cover actual expenses—background checks, credit reports, administrative time. You can't pad it.

If you don't run the screening or review the application, you're required to refund the fee. No exceptions.

No More Blanket Bans on Criminal History or Evictions

You can't automatically reject someone because they have a criminal record or a past eviction. You have to look at each case individually.

Focus on recent, relevant convictions—typically within the last 4 to 7 years. Same goes for evictions. Give applicants a chance to explain what happened and what's changed since then. Document your reasoning if you deny them.

Income Source Doesn't Matter—Ability to Pay Does

Texas law now prohibits denying applicants based on where their income comes from. Housing vouchers, government assistance, gig work—if they can prove they can cover rent, you have to evaluate them the same way you'd evaluate anyone else.

Your income-to-rent ratio can stay consistent. The source of that income can't be the reason you say no.

Adverse Action Notices Are Required

If you deny an applicant, you must send a written notice explaining why. Be specific: which criteria they didn't meet, what screening company you used, and how they can dispute errors in their background report.

This is a legal requirement, not a courtesy. Don't skip it.

How to Stay Compliant

Here's what you need to do to avoid problems:

• Write down your screening criteria. Be specific about credit scores, income multiples, rental history requirements, and criminal background thresholds. Give this to every applicant before they apply.
• Use a reputable screening service. Make sure they follow federal Fair Credit Reporting Act (FCRA) standards and Texas state law.
• Apply your rules consistently. If you bend the criteria for one applicant, you create legal exposure. Treat everyone the same.
• Document everything. Keep signed acknowledgment forms, screening reports, and adverse action letters on file.
• Protect applicant data. Store sensitive information securely and follow privacy laws.

What This Means for Your Business

Getting screening right protects you from lawsuits and fines. It also builds trust with renters who value fairness and clarity.

When applicants know the process is transparent and legal, they're more likely to trust you as a landlord—and more likely to stay longer once they move in. Good tenants want good landlords. Clear standards help both sides.

Resources and Support

Navigating these changes doesn't have to be complicated—especially when you work with partners who understand Texas law and serve our local market.

Tenant Tracker, a long time LAA member and trusted screening provider, helps Lubbock landlords stay compliant with the 2025 requirements. They handle background checks, credit reports, residential history, and adverse action notices—all while following both federal FCRA standards and Texas state law. Included with their services is the sex offender search, terrorist search, fugitive search, Guardian Shield scanning your property for any new or late entry criminal data, and access to TT Marketing Debt Collection Services. If you're looking for a screening partner that knows the rules and keeps your process consistent, they're worth a conversation.

Beyond screening services, the Lubbock Apartment Association offers compliance resources, legal updates, and community support for property managers working through these changes. If you have questions about how the new laws apply to your portfolio, reach out to LAA or consult a local real estate attorney.

For statewide guidance, check with TAA (Texas Apartment Association) or review the Texas Property Code and Fair Credit Reporting Act directly.

Staying compliant isn't complicated—it just takes intention. Know the rules, apply them fairly, and you'll build a stronger, more defensible business.