Every Texas legislative session produces new laws related to real estate. Here are several bills relating to property management that passed during the 88th Texas Legislature that could affect you and your tenants.
Justice Court Amounts
Justice courts currently allow citizens to sue for amounts up to $20,000 and allow landlords and tenants to resolve disputes such as evictions and repairs. However, under current law, these residential rental disputes can only be settled for up to $10,000. A new law raises the amount a justice court can award as judgment under Section 92.0563 (Tenant’s Judicial Remedies), including an order of repair, to $20,000, rather than $10,000, excluding interest and costs of court. This effectively raises the maximum amount a justice court may award for residential rental disputes to $20,000—on par with the existing amount people can sue one another for in justice court. Specifically, the $20,000 judgment limit would apply to any judgment that provides remedy to a tenant, including orders that require a landlord to make repairs, orders that reduce the tenant’s rent while repairs are ongoing, judgments against the landlord for damages, and court costs and attorney’s fees incurred by the tenant. This law takes effect September 1, 2023.
Source of Funds
Recently, an HOA in Texas passed a rule prohibiting tenants who participate in the Housing Choice Voucher Program, also known as Section 8, from renting homes association. This rule disproportionately affected residents who were Black and female. Further, that rule directly went against the work the Legislature has done in creating processes for neighborhoods to remove discriminatory deed restrictions. A new law that goes into effect September 1, 2023, prohibits an HOA from prohibiting or restricting a property owner from renting to a person based on their method of payment, including payment made in whole or in part by a housing choice voucher under Section 8 or any other federal, state, or local housing assistance, including rental vouchers, rental assistance, or rental subsidies from a nongovernmental organization.
Evictions
Evictions are covered under a new “pre-emption” law passed this session. Unless expressly authorized by another state statute, a municipality or county may not adopt, enforce, or maintain an ordinance, order, or rule regulating evictions or otherwise prohibiting, restricting, or delaying delivery of notice to vacate or filing a suit to recover possession of the premises under Chapter 24, Property Code. This law goes into effect September 1, 2023, and prohibits municipalities and counties from enacting their own regulations regarding these issues. At least one lawsuit has been filed to stop this law from taking effect. Texas REALTORS® staff is currently monitoring this legal action, as it may impact implementation of the law.
Service Animals
There has been an increase in reports of people who are not disabled misrepresenting their dogs as service animals to obtain the benefits provided to individuals with disabilities. For example, some people have attempted to pass off their pets as service dogs to circumvent breed restrictions and avoid paying a pet deposit at their apartments. As a result, some businesses have become increasingly distrustful that an animal represented as a service dog is, in fact, a legitimate service animal.
A new law revises provisions relating to the improper use of assistance animals in order to deter future offenders from fraudulently exploiting this accommodation.
Under the new law, a person commits an offense if intentionally or knowingly representing that an animal is an assistance animal or service animal when the animal is not specially trained or equipped to help a person with a disability. An offense is a misdemeanor punishable by a fine of not more than $1,000 (previously $300) and 30 hours of community service. The bill also includes a provision that subjects a person who habitually abuses or neglects to feed or otherwise neglects to properly care for the person’s service animal to seizure of the animal under the Health and Safety Code. This law takes effect September 1, 2023.
Commercial Property Management
Current law already permits a commercial landlord to terminate a lease—regardless of the lease term—if the commercial tenant used the premises for prostitution or trafficking. A law that takes effect September 1, 2023, adds provisions related to massage businesses. The law specifies that a commercial tenant’s right to possession terminates and the landlord has the right to recover possession—regardless of the terms of the lease—if the tenant is using the premises for operating, maintaining, or advertising a massage establishment without the required license or if the massage establishment was issued a citation, administrative penalty, civil penalty, or other civil or criminal sanction for violating a local ordinance that relates to operating a sexually oriented business.
Hooray!
The new eviction rule will be welcome news to landlords throughout Dallas.
Sounds fair to me.
There needs to be some regulation n the requirements of obtaining the service animal designation. Anyone can get online. Any we have to honor it.
Now they need to regulate the ESA’s.
ESA’s are the problem … not the Service Animals or Therapy Animals.
How would you know if a service animal is not a service animal when by law you can’t ask for documentation or ask for proof?
As a Broker and Property Manager; what is the rule on “Emotional Support” animals? I do appreciate the article regarding “Service Animals”, but it seems rather challenging to get a full understanding of the Law regarding “Emotional Support” animals. We are finding tenants claiming “Emotional Support” animal need the week after they move in.
I also am broker and Property manager. Please clarify. A service animal should have paperwork proving the animal is a service animal and we do not charge a deposit for such animals. These are not pets. Emotional support animals are pets and have no protection under the law and we charge a pet deposit as normal. I believe this to be the current proper answer. I am delighted to see the law passed about evictions. It was very unfair to owners of rent properties during Covid. You cannot stop evictions without stopping the lenders and taxes and insurance bills. It… Read more »
Well stated. It was a crazy time during Covid and some municipalities were overreaching and oblivious to the big picture affecting all involved (lender, insurance co, owner, taxes,etc.).
Wouldn’t that be a breach of contract to bring an animal after moving in without full disclosure of the intent? or talk to the landlord. Can they be evicted for failure to follow the contract terms? I also agree with the above comment that “a service animal is still a pet” and not a human. I had a request from renters who had 3 Service animals, one for mom and the 2 kids : Hello, who do you think you are fooling?
It’s my understanding that if a service dog is really a service dog, they should be with the owner at all times. Not left in the property. I think ESA’s would be the same?
Yes, we definitely need some answers here. And agents need to be educated regarding the difference
Perfect.
I am also a fill time property manager. My understanding is the tenant or prospective tenant is asking for a “Reasonable Accommodation”. That opens the door for us to ask reasonable questions. We don’t ask. We use a third party tool. All pets/animals must be registered. Give it a try…..
Nobody fakes a service animal letter. The Emotional Support Animal letters are faked all day – everyday. There needs to be more rules in place so that people stop getting away with this.
Good afternoon, I took a class with the CE shop it is called Assistance Animals and Fair Housing. I found it had some good information in dealing with this topic. I am a property manager and this is something that I deal with when putting in a new tenant. Here are some bullet points from that class I hope it helps. Federal fair housing law is considered the minimum required, while state laws may be stricter than the federal requirements and may also provide protection for more classes of people. State fair housing laws may apply to all real property… Read more »
So we can’t ask about them, but if the tenant is lying about it…sounds like that will be easy enough to police…I think the Texas legislature really missed the point on the issues with service animals (and like everyone else mentions, service animals aren’t the real issue – emotional support animals are what cause all the problems I’ve seen). I guess someone will just “know” and all will be cool? Ugh.
Will the Texas REALTOR® FORM 2225 be updated to reflect the penalty for misrepresenting an assistance animal? I believe this form could be made a part of the rental application which will clarify to applicants the authorization the landlord’s representative has been given to request verifiable documentation when it comes to the need related to a disability for the emotional support assistance animal. I believe this form is underutilized and could be beneficial during the beginning stages of the application process. A pamphlet from HUD, similar to the lead based paint pamphlet, could also be made available to hand out… Read more »