No, he cannot automatically keep the security deposit. However, he may deduct damages and charges from the deposit that the tenant is liable for under the lease or as a result of breaching the lease. Paragraph 10(D) of the Residential Lease (TXR 2001) lists the deductions that the owner can make from the security deposit. In your case, it's likely the delinquent rent and other damages you describe will exceed the amount of the security deposit and the owner will be allowed to retain all of it. Additionally, the owner is generally required to give the tenants a written description and itemized list of the deductions from the security deposit within 30 days after the tenants surrendered possession of the property and provide a written notice of forwarding address. However, the landlord is not required to provide this itemized list of deductions if 1) the tenants owed rent when they surrendered the premises and 2) there is no controversy concerning the amount of rent owed. So while the tenants did leave a note with their address on it, since they owed rent, the landlord may be excused from having to provide an itemization as long as there is no controversy concerning the amount of rent owed.

Paragraph 10C of the TXR Residential Lease (TXR 2001) provides that any refund of the security deposit will be made payable to all tenants named in the lease. Since both tenants are named as parties to the lease, make the check payable to both of them.

Maybe. The landlord has an obligation to secure a satisfactory replacement tenant. A tenant may also attempt to locate a replacement tenant. If a satisfactory replacement tenant who can move in by the lease’s commencement date is not found, the landlord may hold the tenant in default and exercise the remedies in Paragraph 27 of the Residential Lease (TXR 2001). This may allow the landlord to keep the security deposit and first month’s rent. On the other hand, if the landlord does find a satisfactory replacement tenant who can move in by the commencement date, the landlord may only deduct from the security deposit and the first month’s rent either a sum agreed to in the lease as a cancellation fee or actual expenses incurred by the landlord in securing the replacement tenant.

The seller should transfer the deposit to the new owner at closing, and the new owner should send a written statement to the tenant to notify the tenant that there is a new owner and that specified the amount of deposit the new owner is responsible for. In the Addendum regarding Residential Leases (TXR 1953, TREC 51-1), it expressly states: “At closing, Seller shall transfer security deposits (as defined under Section 92.102, Property Code), if any, to Buyer. At closing, Buyer shall deliver to the tenant a signed statement acknowledging that the Buyer has acquired the Property and is responsible for the return of the security deposit, and specifying the exact dollar amount of the security deposit.”The Notice to Tenant of Change in Management and Accountability for Security Deposit (TXR 2210), could be used for this purpose with a few obvious changes. Under the provisions of Section 92.105 (b-1) of the Texas Property Code, the seller who no longer owns an interest in the rental premises is liable for the security deposit recieved while they were the owner until either 1) the deposit is transfered to the new owner 2) the new owner assumes liablity for the deposit, or 3) the contract specifies some other method of handling the deposit. Note: Section 92.105 of the Texas Property Code does not apply to a real estate mortgage lienholder who acquires title by foreclosure.

None of the tenants’ security deposit is due for refund or an accounting until 30 days after the remaining two tenants surrender the property. Generally, a landlord has a duty to refund and/or provide a written description and itemized list of all deductions on or before the 30th day after the day the tenant surrenders the rental property. “Surrender” is defined in paragraph 16 of the Residential Lease (TXR 2001) as “when all occupants have vacated the Property, in Landlord’s reasonable judgment, and one of the following events occurs: (a) the date Tenant specifies as the move-out or termination date in a written notice to Landlord has passed; or (b) Tenant returns keys and access devices that Landlord provided to Tenant under this lease.”

In a situation where there are multiple tenants in a rental property, “surrender” does not occur until the last occupant moves out. Even if one tenant has moved out of the property, returned the keys, given proper notice of termination, provided a written forwarding address and is not delinquent in rent, if the remaining tenants extend or sign a new lease with the landlord, the tenant would not yet be entitled to the security deposit because not all tenants have surrendered.

The remaining tenants may settle the splitting of the security deposit amongst themselves with the tenant who is vacating. This way the vacating tenant does not have to wait to see any refund or accounting of the security deposit and the property manager or landlord does not have to attempt to return a portion of the security deposit to the vacating tenant, especially when the landlord or property manager may not know what deductions may need to be taken out of the security deposit yet and because, under the lease, the tenants are jointly and severally liable for all provisions in the lease.

No. The wife is not automatically entitled to the security deposit. If the tenant has caused damage to the property beyond normal wear and tear, both the wife and the husband are entitled to the funds, not just the wife. Furthermore, the Residential Leasing and Property Management Agreement (TXR 2201) authorizes you, as the property manager, to account for the security deposits you hold in a trust account and take any deductions from the deposits in accordance with the lease and the Property Code. Hence, you will not be liable unless you’ve failed to account for the security deposit.

The security deposit is a deposit given by the tenant to the landlord as security for the tenant's performance under the lease. The landlord must account to the tenant for the deposit at the end of the lease. When the Residential Leasing and Property Management Agreement (TXR 2201) terminates, paragraph 7(c)(2) states that the property manager returns the security deposit, less deductions authorized by the agreement, to the landlord and provides the tenant with a written notice stating 1) the property management agreement has ended, 2) the exact dollar amount of the security deposit, 3) the contact information for the owner, and 4) a statement that the owner is responsible for accounting for and refunding the deposit to the tenant. If the property manager complies with the above provisions, the landlord indemnifies the property manager from any claim or loss relating to the return of the security deposit to the tenant.