Owning a single-family home, duplex, or condo as a rental property in Houston can be a smart investment—but it only takes one bad tenant to disrupt your cash flow, damage your property, and create a mountain of legal headaches. Whether you’re already a rental property owner or just getting started, tenant-related issues like non-payment of rent, refusal to vacate, or even property destruction can be financially devastating.
At Trusted Property Management Solutions of Houston, we’ve seen how one poor leasing decision can unravel an otherwise profitable rental portfolio. That’s why successful Houston landlords rely on strong systems and proactive strategies—starting with smart tenant screening.
1. Screen Tenants With Strict, Consistent Standards
The best way to avoid bad tenants is to prevent them from moving in at all. A strong screening process can drastically reduce your risk. Here’s what we recommend for rental properties throughout the Greater Houston area:
No recent evictions: Applicants with recent or repeated evictions are a high risk. If the eviction was more than 10 years ago and they meet all your other requirements, you may choose to consider them.
Verifiable income: Require applicants to show consistent income of at least three times the monthly rent. Always verify their employment directly—don’t rely on documents alone.
Good credit habits: Look for a minimum credit score of 600. While not perfect, this baseline helps weed out applicants with severe financial issues. Pay special attention to collections or high credit usage, which may indicate financial stress.
Keep in mind: you must apply the same screening criteria to every applicant. This ensures compliance with Fair Housing laws and protects you from legal liability.
2. Handle Criminal Backgrounds With Care
When reviewing criminal histories, remember that Texas law permits you to deny applicants whose convictions pose a real risk to others or to your property. That typically includes crimes related to violence or property damage. However, blanket bans are legally risky and may violate Fair Housing regulations. Always consult a qualified attorney before making a denial based on criminal history.
3. Use a Legally Sound, Houston-Specific Lease Agreement
Your lease agreement is more than just paperwork—it’s your primary line of legal protection. A solid, Houston-specific lease should clearly outline every tenant obligation, including:
Utility responsibilities
Lawn care and property upkeep
Rent due dates, grace periods, and late fees
Pet and smoking rules
Guest policies and limits
Damage liability and eviction conditions
Avoid using generic lease templates. Work with a local real estate attorney or a professional property manager to draft an agreement that complies with Texas landlord-tenant laws and addresses the unique needs of your Houston rental.
4. Collect and Protect the Security Deposit
In Texas, there’s no legal cap on security deposits, but they must be reasonable. For Houston rental homes, duplexes, and condos, we recommend collecting at least one full month’s rent as a deposit, paid in full before move-in.
Important tips:
Store deposits in a separate account
Provide a receipt and maintain documentation
Return deposits (with itemized deductions if needed) within 30 days of move-out
Consult legal counsel before using any portion of the deposit
Mishandling a deposit could expose you to lawsuits and penalties, including being forced to pay triple the deposit amount.
5. Hire a Professional Houston Property Manager
Managing your own single-family rentals or duplexes can be time-consuming and risky—especially if you’re new to Houston real estate. A seasoned property management company like Trusted Property Management Solutions of Houston can help you maximize returns, reduce liability, and ensure tenant issues are handled correctly.
We handle every detail for you:
A reliable property manager isn’t a cost—it’s an investment in protecting your property and peace of mind.
Looking for Property Management in Houston?
If you're a real estate investor or homeowner with a single-family rental, duplex, or condo in Houston or our surrounding areas—Trusted Property Management Solutions is here to help. We combine personal service with local expertise to protect your property and boost long-term profitability.
Reach out today for a free consultation and let’s talk about how we can support your investment goals.
📞 713.244.4457
📧 jim@trustedhoustonpm.com
