Nov 06, 2021

Permissible Regulation of Residential Leases & Rental Restrictions- 2021 Legislative Session Analysis

Richardson, Texas
Richardson, Texas

Section 209.016 of the Texas Property Code governs the regulation of residential leases within property owners’ associations. This section was recently amended and now expressly allows for an association to request the following information to be submitted to the association regarding each lease or rental applicant: Contact information (including name, mailing address, phone number, and email address) for each person who will reside at a property; the commencement date of the lease; and the terms of the lease.[1]  This is the first instance where the law expressly allows for a residential subdivision or townhome to require that owners submit information related to tenants who occupy their properties.

Further, the prohibition on the collection of “sensitive personal information” has been repealed.  “Sensitive Personal Information” included tenants’: Social Security Numbers; driver license numbers; government-issued ID numbers; and account, credit, or debit card numbers.[2]

Unfortunately, no other changes to the law were made, including to the prohibition on requesting a copy of a tenant’s credit report or a copy of the lease or rental application.  The allowances under this section go into effect on September 1, 2021.


[1] Texas Property Code § 209.016(e)

[2] Texas Property Code § 209.016(a)&(c)- Redacted by Section 22 of SB 1588