89R1685 PRL-D
By: Bell of Montgomery H.B. No. 1518
A BILL TO BE ENTITLED
AN ACT
relating to the issuance by the Texas Department of Housing and
Community Affairs of verified residential rental applications.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act shall be known as the Ready to Rent
Texas Act.
SECTION 2. Chapter 92, Property Code, is amended by adding
Subchapter J to read as follows:
SUBCHAPTER J. VERIFIED RESIDENTIAL RENTAL APPLICATION
Sec. 92.361. DEFINITIONS. In this subchapter:
(1) "Applicant" means a person who makes an
application to a landlord for rental of a dwelling.
(2) "Department" means the Texas Department of Housing
and Community Affairs.
(3) "Landlord" means a prospective landlord to whom a
person makes an application for rental of a dwelling.
(4) "Portal" means the verified residential rental
application Internet portal established and maintained by the
department.
(5) "Verified application" means the verified
residential rental application issued by the department through the
portal.
Sec. 92.362. APPLICATION OF SUBCHAPTER. This subchapter
applies to all applicants for and landlords of residential rental
property in this state.
Sec. 92.363. CONSTRUCTION OF SUBCHAPTER. Nothing in this
subchapter may be construed to prohibit a landlord from rejecting
an applicant if the applicant does not meet the landlord's tenant
selection criteria, including the applicant's:
(1) criminal history;
(2) previous rental history;
(3) current income;
(4) credit history; or
(5) guarantor information, as applicable.
Sec. 92.364. APPLICANT USE OF VERIFIED APPLICATION. An
applicant for rental of a dwelling completely satisfies any
application requirements of a landlord by submitting to the
landlord a verified application issued not earlier than the 90th
day before the date the application is submitted to the landlord.
Sec. 92.365. LANDLORD ACCEPTANCE OF VERIFIED APPLICATION.
A landlord must accept a verified application as completely
satisfying the landlord's application requirements if the
application is issued not earlier than the 90th day before the date
the application is submitted to the landlord by the applicant.
Sec. 92.366. PROHIBITED APPLICATION DOCUMENTS AND FEES. A
landlord may not require an applicant to:
(1) submit a rental application other than a verified
application; or
(2) pay an:
(A) application fee; or
(B) application deposit.
Sec. 92.367. VERIFIED RESIDENTIAL RENTAL APPLICATION
INTERNET PORTAL. (a) In this section:
(1) "Consumer reporting agency" means any person that,
for monetary fees or dues or on a cooperative nonprofit basis,
regularly engages in the practice of assembling or evaluating
credit information or other information on individuals for the
purpose of furnishing consumer reports to third parties.
(2) "Credit report" means a written report of
information by a consumer reporting agency that bears on an
individual's creditworthiness, credit standing, or credit
capacity.
(3) "Criminal history background check" means a
written report of an individual's criminal history record
information, as defined by Section 411.082, Government Code.
(b) The department shall develop and implement a portal
through which an applicant may obtain a verified residential rental
application that the applicant may use to apply for rental of a
dwelling.
(c) The portal implemented under Subsection (b) shall
provide for an applicant to:
(1) submit the applicant's:
(A) previous rental history;
(B) proof of current income; and
(C) guarantor information, if applicable;
(2) request and grant permission for the department to
obtain the applicant's:
(A) criminal history background check; and
(B) credit report;
(3) pay any required fees; and
(4) access and share the applicant's verified
application.
(d) The department may contract with a private vendor for
the development and implementation of the portal required by
Subsection (b).
(e) On submission of a request for a verified application
and payment of required fees under Subsection (f), the department
shall:
(1) obtain the applicant's:
(A) criminal history background check; and
(B) credit report;
(2) verify the applicant's:
(A) criminal history;
(B) previous rental history;
(C) current income;
(D) credit history; and
(E) guarantor information, as applicable;
(3) issue a verified application to the applicant
through the portal; and
(4) enable the applicant to share the verified
application through the portal.
(f) The department may charge a fee for a verified
application in an amount reasonable and necessary to administer
this subchapter. The department may not charge a fee for a criminal
history background check or a credit report that exceeds the actual
cost to the department of obtaining the document.
(g) A verified application issued under this section is
valid for 90 days.
SECTION 3. Section 92.102, Property Code, is amended to
read as follows:
Sec. 92.102. SECURITY DEPOSIT. A security deposit is any
advance of money, other than [a rental application deposit or] an
advance payment of rent, that is intended primarily to secure
performance under a lease of a dwelling that has been entered into
by a landlord and a tenant.
SECTION 4. Subchapter I, Chapter 92, Property Code, is
repealed.
SECTION 5. Not later than December 31, 2025, the Department
of Housing and Community Affairs shall make available to the public
the verified residential rental application Internet portal
required by Section 92.367, Property Code, as added by this Act.
SECTION 6. This Act takes effect January 1, 2026.