Tag Archive for: renters

Texas Now Has Flood Disclosure For Renters

Several years ago, a new Texas law mandated flood disclosure for home buyers. Effective January 1, 2022, we now have a similar law for renters. The last legislature added a new section to the Texas Property Code: § 92.0135. But read the fine print. The law has some huge “qualifiers.”

Jennifer Parks Rental townhome
Many of the Marina Drive Townhomes destroyed by Harvey were rented out. Even though the ground level flooded frequently, landlords in such situations would not have been required to disclose past flooding...until this year.

Floodplain Disclosure Requirement

The new law requires landlords to provide tenants with special notice if their structure is located in the 100-year floodplain designated by FEMA. The notice must also inform tenants that:

  • “Even if the dwelling is not in a 100-year floodplain, the dwelling may still be susceptible to flooding.”
  • “Most tenant insurance policies do not cover damages or loss incurred in a flood.”
  • “You should seek insurance coverage that would cover losses caused by a flood.”

Exception for Elevated Structures

However, the landlord is not required to tell tenants that the property is in the floodplain if the building has been elevated above it. Hmmmm. What about that vehicle in the parking lot?

Flood Disclosure Required…But Only If in Past 5 Years

Regardless of the floodplain status, if a building has flooded in the last five years, the landlord must disclose that to a prospective tenant. This five-year limitation, is one of the biggest flaws in the law, in my opinion. The landlord would currently not have to disclose flooding in the 1994, Allison, Ike, the May 25-27 floods in 2015, or the Tax Day and Memorial Day Floods in 2016. And come September, the landlord would not have to disclose flooding during Hurricane Harvey either.

A lady in the apartment complex pictured above flooded eight times in five years!

Written Communication, Separate From Lease Required

However, if the landlord must provide notice, he/she must do it in separate written communication at/or before the signing of the lease.

“Substantial Loss” May Trigger Termination of Lease

If the landlord fails to provide the required notice AND if the tenant suffers a “substantial loss,” the tenant may terminate the lease within 30 days after flood damage occurred. The law defines substantial as 50% or more of the value of repairs to or replacement of the renter’s personal property – on the day the damage occurred.

Lease Termination Only Allowed For 30 Days

Another “but”: termination of the lease becomes effective when the tenant moves out, not at the time of damage.

Within another 30 days after the termination of the lease, the landlord must refund “all rent or other amounts paid in advance under the lease for any period after the effective date of the termination of the lease.”

Flooding No Excuse for Unpaid Rent

The new law does not affect “a tenant’s liability for delinquent, unpaid rent or other sums owed to the landlord before the date the lease was terminated.” So, in other words, if it takes you a full month to move your flood damaged possessions out after the flood, you would owe the landlord for that month.

I am not a lawyer and do not provide legal advice, but that’s how I read the law. Regardless of whether you are a landlord or a tenant, you should read it yourself and discuss it with your lawyer if you have questions.

Posted by Bob Rehak on 4/16/22 based on a tip from a reader

1691 Days since Hurricane Harvey

Proposed New Law Mandates Flooding Disclosure to Renters

HB531 passed the Texas House of Representatives today. 119 voted Yea, 27 Nay and 2 voted present. Before it can become law, it still needs to pass the Senate and then the Governor must sign it.

Background and Purpose

Some feel that renters in areas susceptible to flooding may be unaware of that risk. Although state law requires a person selling real property to disclose to prospective homeowners whether the property is located in a floodplain, there is no similar requirement with respect to renters. H.B. 531 seeks to ensure that tenants are equipped with the information necessary to make informed decisions.

It requires a landlord to provide tenant with a written notice indicating whether the landlord is aware that the leased dwelling is located in a 100-year floodplain. It would also require the landlord to disclose whether the dwelling sustained flood damage in the preceding five-year period.

Some companies buy up homes on the cheap after floods and then rent them out to unsuspecting families. In North Kingwood Forest, I interviewed a family last year that fell into that category. The home flooded after May 7th in 2019, was fixed up, and quickly rented. Then the unsuspecting family promptly flooded during Imelda. Only then did the family learn of the properties history.

A first responder during Harvey leased one of these homes next to Woodridge Village in North Kingwood Forest before Imelda. Here’s what the street looked like after Imelda. The cycle continued. HB 531 is designed to help renters in situations like these.

Provisions

H.B. 531 amends the Property Code to require the landlord of a residential dwelling to provide to a tenant a written notice stating whether the landlord is or is not aware that the dwelling is located in a 100-year floodplain. The bill sets out additional language related to informing the tenant of the dwelling’s potential susceptibility to flooding and the advisability of flood insurance.

However, if the landlord of a dwelling in a 100-year floodplain has raised the building above the 100-year floodplain in accordance with federal regulations, the landlord is then not required to disclose that the dwelling is located in the floodplain. The bill requires a landlord who knows that flooding has damaged any portion of a dwelling at least once during the five-year period immediately preceding the effective date of a lease to provide written notice to the tenant.

An amendment to H.B. 531 requires each applicable flood notice to be included in a separate written document given to a tenant before execution of a lease.

Lease Termination Rights

The bill lets a tenant terminate a lease if a landlord violates notice requirements and the tenant suffers a substantial loss or damage to the tenant’s personal property as a result of flooding. The tenant to give a written notice of termination to the landlord not later than the 30th day after the date the loss or damage occurred. The bill makes termination effective when the tenant surrenders possession of the dwelling.

It also requires the landlord, not later than the 30th day after the effective date of the termination, to refund to the tenant all rent or other amounts paid in advance under the lease. HB 531’s provisions do not affect a tenant’s liability for delinquent, unpaid rent or other sums owed to the landlord before the date the tenant terminated the lease.

If approved by the Senate and Governor, the bill would become effective on January 1, 2022.

For the full text of the bill as it currently stands, click here.

Posted by Bob Rehak on 4/2/2021

1312 Days after Hurricane Harvey and 560 since Imelda