Early termination situation

[Bishoy Takla]

Hello BP, 

I need your opinion on an early termination situation. Thanks in advance for your thoughts and advice. 

A tenant leased my property from October 2023 through September 2024 in TX. In August 2024, I sent him an email outlining a new rental rate for a 12-month term and requested that if he wants to renew that he pay an increased security deposit along with the September 2024 rent. He complied—submitting the additional deposit and paying the new rate starting that month—indicating acceptance of the renewal terms to my understanding, I didn;t follow up with a signed lease extension.

In May 2025, the tenant informed me via email that he had purchased a home and planned to move out early. I reminded him that the lease had been renewed through September 2025 and that he could remain liable for rent during any vacancy period. He acknowledged this and agreed to continue paying rent until the unit was re-rented. I offered to list the property immediately in May, but the tenant declined to allow showings until he had fully vacated, which occurred in June 2025. He also paid rent for June.

I began showing the property in June and was close to finalizing a lease with a new tenant. Unfortunately, a leak was discovered in the washer box—likely caused by the outgoing tenant failing to properly tighten the valve when disconnecting his washer—delaying the rental process until August.

The tenant is now requesting the full return of his security deposit, claiming he was on a month-to-month lease and I didn't send him the itemized list of damages or deductions within 30 days of his moving-out date.  

I offered to deduct the following from the security deposit:

1. Two weeks’ rent as an early termination fee (due to breaking the lease before the end of the renewal term).

2. Cleaning and plumbing repair costs associated with the washer box leak.

These deductions would leave approximately one-quarter of the security deposit to be returned.

Here are my questions, and feel free to add any more thoughts:

1- Do I have a binding renewal of the lease by "implied action"? Even if there is no written and signed lease extension?

2- Is what I am offering fair and reasonable or would you offer something different?