Texas real estate guide
Owning investment property in Texas
Texas has no personal income tax, landlord law that sets out each party's duties in detail, and property taxes that are reassessed every year and can be protested. It also has deadlines that catch owners out. These plain-English guides explain the rules for buying, owning, renting and selling investment real estate in Texas, with references to the statutes behind them.
Property taxes
How appraisal districts value property, the yearly cycle, caps, exemptions and bills.
Read the guide →Landlord basics
Deposits, repairs, late fees, security devices, notices and evictions under the Property Code.
Read the guide →Taxes on rental income
What "no income tax" means for rentals: federal rules, the franchise tax and hotel tax.
Read the guide →1031 exchanges
Deferring tax when you sell one property and buy another, and the deadlines that decide it.
Read the guide →All guides
Property tax
- Texas property taxes for rental owners — who values property, who sets rates, the yearly calendar, caps and penalties.
- How to protest a property tax appraisal — deadlines, evidence, the review board hearing and appeals.
- Texas homestead exemption rules — who qualifies, the 10% cap, and what changes when a home becomes a rental.
Landlord law
- Texas landlord-tenant law basics — repairs, late fees, security devices, flood disclosure, lockouts and fair housing.
- Texas security deposit return rules — the 30-day deadline, itemizing deductions and the bad-faith penalties.
- The Texas eviction process and timeline — notices, justice court, appeals and writs of possession after SB 38.
- Texas HOA rules for landlords — leasing restrictions, what an association may ask for, and enforcement limits.
- Texas short-term rental rules by city — hotel occupancy tax and how Austin, San Antonio, Houston and Dallas regulate short stays.
Buying and selling
- Title insurance in Texas — promulgated rates, owner's and loan policies, surveys and the resale contract timeline.
- Texas seller's disclosure notice rules — who must disclose, exemptions, and the 7-day termination right.
- Texas foreclosure auctions explained — first-Tuesday trustee's sales, tax sales, HOA sales and redemption rights.
Tax and ownership structure
- Taxes on rental income in Texas — federal rules, the franchise tax and why most rental LLCs are not passive entities.
- 1031 exchanges for Texas property — the 45- and 180-day deadlines, identification rules and common failures.
- LLCs for Texas rental property — formation, series LLCs, annual reports and the due-on-sale problem.
The Texas trade-off
Texas funds local government mainly through property tax rather than a personal income tax. For an owner of rental property that has two consequences:
- Rental income faces no state personal income tax. Federal income tax still applies, and an owner that is a business entity is subject to the Texas franchise tax. See taxes on rental income.
- Property tax is a major, recurring cost that is reassessed every year, which makes the annual appraisal protest a habit worth building. See the protest guide.
A year in the life of a Texas rental owner
| When | What happens |
|---|---|
| January 1 | Property is valued for the year's property tax, as of this date |
| Before February 1 | Last year's property taxes must be paid to avoid penalties and interest |
| Spring | Appraisal notices arrive; the protest window opens |
| May 15 | Usual protest deadline (or 30 days after the notice, if later), and the usual due date for Texas franchise tax reports |
| Late summer to autumn | Local taxing units adopt their tax rates; bills follow |
| Whenever a tenant leaves | The security deposit clock starts: 30 days to refund or itemize |
| Whenever a lease is signed | Flood disclosure and security device requirements apply |
Dates can shift when they fall on weekends, and some depend on when notices are delivered. Always check the date printed on your own notices.
What this site is, and is not
This is an educational guide to the rules. It does not recommend or offer any property, fund or investment, and it is not legal, tax or financial advice. Rules change, especially property tax rules, which the Texas Legislature revisits often. Each guide shows the date it was last reviewed. Use the guides to prepare good questions for a Texas CPA, real estate attorney or other licensed professional. More about the publisher is on the about page.