Tex. Prop. Code Ann. §§ 94.001–94.303 § 94.104
CONDITIONS FOR RETENTION OF SECURITY DEPOSIT OR RENT PREPAYMENT.
Operative Text
Sec. 94.104. CONDITIONS FOR RETENTION OF SECURITY DEPOSIT OR RENT PREPAYMENT. (a) Except as provided by Subsection (b), a landlord who receives a security deposit or rent prepayment for a manufactured home lot from a tenant who fails to occupy the lot according to a lease agreement between the landlord and the tenant may not retain the security deposit or rent prepayment if:(1) the tenant secures a replacement tenant satisfactory to the landlord and the replacement tenant occupies the lot on or before the commencement date of the lease; or(2) the landlord secures a replacement tenant satisfactory to the landlord and the replacement tenant occupies the lot on or before the commencement date of the lease.(b) If the landlord secures the replacement tenant, the landlord may retain and deduct from the security deposit or rent prepayment either:(1) an amount agreed to in the lease agreement as a lease cancellation fee; or(2) actual expenses incurred by the landlord in securing the replacement tenant, including a reasonable amount for the time spent by the landlord in securing the replacement tenant. Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.
Under Texas Property Code § 94.104, a landlord who holds a security deposit or rent prepayment for a manufactured home lot generally cannot keep those funds if a tenant fails to move in, provided a suitable replacement tenant is found and occupies the lot by the original lease start date. It does not matter whether the tenant or the landlord finds that replacement — either path can satisfy the condition. However, if the landlord is the one who locates the replacement, the rule permits the landlord to retain a limited portion of the deposit to cover either a lease cancellation fee spelled out in the lease or the actual, reasonable costs of finding that replacement.
Plain English — not legal advice.
Operators of manufactured home lot communities subject to Tex. Prop. Code § 94.104 generally document any costs incurred when a prospective tenant fails to occupy a lot, including time spent locating a replacement. Compliant operators ensure that any lease cancellation fee is clearly stated in the written lease agreement before it can be deducted from a security deposit or prepayment. When a replacement tenant is secured — whether by the operator or the departing tenant — operators confirm that the replacement occupies the lot on or before the original lease commencement date, since that timing is central to whether any retention of funds is permissible.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under Tex. Prop. Code § 94.104, tenants who are unable to occupy a manufactured home lot they have leased may have a path to recovering their security deposit or rent prepayment by finding a replacement tenant who is acceptable to the landlord and ready to move in by the lease start date. Even if the landlord finds the replacement, the landlord's ability to keep any portion of the deposit is limited to amounts tied to actual replacement costs or a cancellation fee that was written into the lease. Tenants who believe a landlord has improperly retained funds beyond what this provision allows may consider consulting a tenant-rights organization or reviewing the broader protections in Chapter 94 of the Texas Property Code for guidance on available remedies.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 28, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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