Why this matters for a small apartment purchase
Texas residential landlord-tenant law is mostly in Chapter 92 of the Texas Property Code. It applies regardless of unit count, so a 6-plex owner has the same core duties as a large complex. When you buy a building, you take on those duties for every current lease. Older small buildings, especially those owned for years by self-managing sellers, are the most likely to have gaps.
Nothing here is legal advice. The Texas State Law Library publishes a helpful landlord/tenant guide, and a Texas real estate attorney can review your specific building and leases.
Security devices (Subchapter D)
Subchapter D requires specific security devices on residential rental units, at the landlord's expense, and sets rules for rekeying between tenants. Required devices include items such as window latches, keyed deadbolts on exterior doors, door viewers and pin locks or handle latches on sliding doors, with details that vary by door and window type. During your inspection:
- Walk every unit and check each exterior door and window against the requirements
- Ask the seller for rekeying records between tenants
- Budget for missing or non-compliant devices; it is often a modest cost per unit, but it adds up
- Plan to rekey every unit after closing, since you cannot know who holds keys
Smoke alarms (Subchapter F)
Subchapter F requires smoke alarms in residential rental units and sets installation, inspection and repair duties, including inspection at the start of a tenancy and repair or replacement when a tenant gives notice. Check that every unit has working alarms in the required locations, and ask whether the seller has records of inspections at move-in.
Repair duties (Subchapter B)
Subchapter B requires landlords to make a diligent effort to repair conditions that materially affect the physical health or safety of an ordinary tenant after notice. Tenants have remedies if the landlord does not. Ask the seller for all open maintenance requests and any written repair notices, and look for signs of unresolved problems: water damage, broken HVAC, plumbing leaks and electrical issues. An open repair dispute can become a rent dispute after you buy, which shows up as delinquency on your rent roll.
Security deposits (Subchapter C)
Subchapter C governs how deposits are handled and refunded, including timelines and itemized deductions. At closing, deposits should transfer to you with a ledger showing each tenant's deposit. If the seller kept deposits in a general account, make sure the amount credited to you at closing matches the leases. When you sell or the tenant moves out, you're responsible for refunds under the rules.
Other items worth checking
- Lease forms: are they current and consistent across units?
- Tenant notices: any open notices to vacate or eviction filings? Ask for a list.
- Parking and towing rules if the building has a lot
- Pool or other amenities, which carry their own safety rules
- City registration or inspection requirements for multifamily rentals
How this connects to financing
Lenders do not inspect for Chapter 92 compliance, but compliance affects things they do care about. A building with open safety issues may be harder to insure. Unresolved repair disputes can lead to delinquency, which reduces the collected rent that sizes your loan. And the cost of bringing a building into compliance comes out of the same budget as your down payment and reserves. Include it in your plan. If the list of fixes is long, consider whether the building needs bridge-to-DSCR financing first.
Put it in the purchase timeline
Do the walk-through during your option period, alongside the rent roll review and the insurance quote. If the gaps are significant, negotiate a credit or a price reduction before the option period ends.
Budgeting the fixes
Keep a simple line-item list during the walk-through: unit number, item, estimated cost. Security devices, smoke alarms, broken window latches and door viewers are usually inexpensive individually. Repair items such as water damage, HVAC failures or electrical problems can be much larger. Separate the two lists so you can negotiate the big items with the seller and plan the small ones into your first month of ownership.
Remember that the lender will look at your reserves after closing. Money spent on compliance right after you buy comes out of the same pocket, so include it when you decide how much cash the deal needs.
Questions investors ask
Does Chapter 92 apply to small apartment buildings?
Yes. It applies to residential tenancies in Texas regardless of the number of units.
Do lenders check security devices or smoke alarms?
Generally not directly, but safety gaps can affect insurance, tenant disputes and your costs, all of which affect the loan.
Do I have to rekey after buying a building?
Rekeying rules apply between tenants. Many buyers rekey every unit after closing anyway as a practical security step; ask an attorney about your duties.
This guide summarizes Texas rules generally and is not legal or tax advice. Figures are illustrations using user-style inputs, not loan offers. Nothing here is a commitment to lend.