Second non-refundable rental deposit

[Lori Hoehn]

I wanted to know if someone could help me with a question, I have a rental property in DFW TX that I want to lease, but in the past many of my tenants that I have had have problems with renting because they don't have proper legal documentation or have past evictions, & we do second chance leasing to help where other companies will not.

But when the tenant leave the house it is  in need of more repairs than normal wear & tear, so I wanted to add a second non refunable deposit is that ok here in DFW?

First deposit is refunded if property is returned the way it was given. 

Also we do maintain & take care of our properties & are diligent landlords, but we have taken substantial loss that deposit alone DONT cover to make ready again.

What advice do you have? Can this be done with prior consent to tenant moving in?

[Greg H.]

Texas has no cap on the amount of deposit that a landlord may charge. However, the open market will determine that cap for you.  It is very rare to see a deposit exceed one months rent in Texas.  

I am assuming that your rental is not high end?  It is going to be very tough to get say a $2000 deposit for a property that rents for $1000. That property is more likely going to sit on the market for some time therefore "losing" you $1000 a month in income. My guess is this strategy would end up making you less money in the long run