Texas Rent Control Laws: Do They Exist?

Whether you're a tenant worried about sudden rent hikes or a landlord navigating the complexities of rental regulations, understanding the specifics of Texas rent control laws is essential. 

Texas has a unique stance on rent control compared to other states. While some regions in the United States implement strict regulations to cap rent increases and protect tenants, Texas takes a different approach. This can lead to questions and uncertainties about how much landlords can raise rent and what protections tenants have.

This article offers an in-depth look at Texas rent control laws, detailing the legal landscape and specific regulations on rent increases. We’ll also shed light on why Texas does not implement rent control policies.

General information on Texas rent control laws

Rent control is a regulatory measure that states and local governments use to cap landlords' rents and limit their ability to raise existing tenants’ rent, protecting against significant rent hikes. While it benefits tenants by preventing unreasonable increases, it can pose challenges for landlords by limiting potential revenue.

Rent control across the U.S.

According to the National Apartment Association, 33 states prevent local governments from adopting rent regulation laws. On the other hand, California, the District of Columbia, Maine, Maryland, Minnesota, New Jersey, New York, and Oregon have rent control policies at the state or local level.

However, as concerns about housing instability and tenant displacement grow, local governments are increasingly challenging preemption laws and considering the adoption of rent control measures. By 2022, more than 200 local governments had implemented rent control policies.

Source: National Apartment Association.

Rent control in Texas

So, where does Texas stand?

Texas does not have statewide rent control legislation, setting it apart from many other U.S. states. Without rent controls, Texas landlords can set rental prices based on market demand and property-specific factors. 

Although statewide rent control laws don’t exist in Texas, some local jurisdictions may have specific ordinances or regulations affecting landlord-tenant relationships and rental practices. 

Texas permits cities to establish local rent control ordinances under specific conditions. However, to implement, a state of disaster must be declared, and the city must be experiencing a housing emergency. Additionally, the ordinance must receive approval from the governor before it can be implemented.

A look into rent increase laws in Texas

According to the U.S. Census Bureau, 8 out of the 15 fastest-growing U.S. cities between July 1, 2022, and July 1, 2023, are in Texas. 

This high growth and demand over the past several years has created rapidly increasing rental rates in the Lone Star State. For instance, Austin’s average rent prices rose 30% from early 2020 to the summer of 2023. 

Although Texas’ rent increases are starting to cool down, Austin’s average rent was still 23% higher in November 2023 than it was in February 2020. 

Source:  United States Census Bureau.

Without rent control regulations, Texas landlords have flexibility when setting their rent rates, allowing them to keep up with demand. 

Let’s look more closely at the specific laws and regulations pertaining to rent increases in Texas.

Potential exemptions to rent control laws in Texas

As discussed, although Texas generally lacks rent control laws, the state can permit municipalities to pass rent control ordinances during specific emergency conditions—although this is rare. 

These conditions include disasters such as:

• Oil spills
• Earthquakes
• Fires
• Floods
• Storms
• Pandemics like COVID-19 

However, any such proposal must receive approval from the governor and can only remain in effect until the disaster has reached manageable levels.

To understand how rarely this law is utilized, consider that no municipalities were permitted to implement rent control measures even during COVID-19.

Notices of rent increases

Texas is unique in that landlords are not legally required to provide notice before raising the rent. However, it is typical in the state to give at least 30 days’ notice before increasing the rental rate on a month-to-month lease.

For fixed-term leases, landlords usually wait until the lease expires to implement a rent hike, providing 30 days’ notice if they plan to increase the rent upon renewal.

This practice helps maintain a positive landlord-tenant relationship and ensures tenants are adequately informed about upcoming changes to their rental agreements.

When rent increases are illegal

Just because Texas does not have rent control laws, and rarely permits municipalities to implement these measures locally, rent increases can still be illegal in certain instances. 

For example, rent hikes are illegal if Texas landlords increase the rent:

• Before the lease term is up unless the tenant agrees to the changes.
• In retaliation against tenants who exercise their legal rights, such as reporting building or housing code violations or joining a tenant union.
• In a discriminatory manner, like raising a prospective or current tenant’s rent due to their race, gender, or disability. 

As a landlord in Texas, you are obligated to abide by the Texas Fair Housing Act, which prohibits discrimination based on protected classes, including race, color, national origin, religion, disability, age, sex, genetic information, and citizenship status.

However, if a landlord does raise a tenant’s rent illegally, then the tenant may be entitled to civil penalties, damages, reasonable attorney’s fees, and court costs.

Managing rent increases with confidence

Effective management of rent increases is important for landlords, and property management platforms can be valuable tools in this process. Solutions like Azibo enable you to centralize all your lease and renewal data, making it easier to identify upcoming expirations and opportunities to adjust your rates.

When deciding whether to raise rental rates, landlords should stay informed about local laws, including rent control regulations, while keeping up with local market rates and rental affordability. Successful landlords balance satisfying tenants with aligning rental income to market trends.

With Azibo's integrated lease management, accounting, and financial management capabilities, you can efficiently analyze operational costs across your entire rental portfolio. This helps you determine appropriate rent increases that cover your expenses while considering local market rates and tenant affordability. 

Partnering with Azibo can transform your property management approach by providing essential tools for informed decision-making and streamlined rent collection. 

Start using Azibo today.

Absence of rent control in Texas

Texas is a landlord-friendly state that prefers light business regulation—causing the state legislature to have little interest in regulating investment property owners and landlords.

In a December 2022 interview with Austin’s NBC affiliate news station, Jake Wegmann, a University of Texas at Austin professor and researcher in housing affordability, stated that “limiting property tax increases kind of comes across as protecting people from taxes, where rent control comes across as regulating the behavior of business people or landlords.” 

Wegmann said that these ideologies prevent the state government from passing any rent control laws.

Ian Mattingly, president of the Apartment Association of Greater Dallas, said in a February 2022 interview with the Texas Tribune that “how much landlords or property owners can make in rent could actually lead to fewer new units being built. That, in turn, could worsen the mismatch between what’s available and what people in his region are looking for.”

However, with rents continuing to rise, never say never. If more Texas residents struggle to keep up with rising rents, some form of rent control may be passed in the Lone Star State.

Sandy Rollins, executive director of the Texas Tenants’ Union, told the Texas Tribune that the state’s lack of rent control is making it unaffordable for tenants. The union encouraged Dallas to implement a rent control law during the pandemic—to no avail. 

Rollins admits that rent control must be implemented statewide to curb the supply and demand challenges and be effective in Texas. But, she and the union aren’t going to give up the fight. The Texas Tenants’ Union will continue to advocate for widespread rent control across the state.

Reflections on rent control in Texas

Rent control is a complex issue with advantages and disadvantages, and Texas is no exception. The high growth and demand over the past several years have led to rapidly increasing rental rates in the Lone Star State, causing debates over rental affordability.

When deciding whether to raise rental rates, landlords should stay informed about local laws, including rent control regulations, while keeping up with local market rates. Utilizing property management tools like Azibo can help landlords manage their rental properties efficiently, stay compliant with local regulations, and make informed decisions on rent adjustments.

As housing affordability continues to be a significant concern across the country, the debate over rent control remains a prominent topic among policymakers, housing advocates, and the general public.

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Navigating rent control laws in Texas FAQs

Does Texas have statewide rent control laws? No, Texas does not have statewide rent control laws. Landlords are generally free to set rental prices based on market demand without state-imposed limits.

Can Texas cities implement their own rent control ordinances? Texas municipalities can pass rent control ordinances only under specific emergency conditions, such as disasters or pandemics, and these must be approved by the governor.

How often can a landlord increase rent in Texas? In Texas, landlords can increase rent as often as they wish, provided they comply with the terms of the lease agreement. For month-to-month leases, landlords typically must give at least 30 days' notice.