Texas Real Estate Leasing & Property Management Practice Questions (Free + Explained)

TL;DR

What Does the Texas Real Estate Leasing Section Test?

Based on the current Pearson VUE Texas Real Estate Candidate Handbook and exam content outline, Leasing and Property Management content appears on both the national and state portions of the Texas real estate licensing exam. Our complete study guide explains how to weight each section in your preparation. The national portion covers lease types, landlord and tenant rights and obligations, and fair housing requirements in rental transactions. The state portion covers Texas-specific landlord-tenant law, including the Texas Property Code provisions that govern residential leases, security deposits, and eviction procedures — many of which overlap with Texas laws and compliance content.

This section is less prominent on the exam than Contracts or Laws but contains several high-yield topics — particularly security deposit rules, lease termination procedures, and the distinction between lease types — that appear consistently on both portions of the exam.

What Topics Are Tested?

• Types of leases — a gross lease requires the tenant to pay a fixed rent while the landlord pays operating expenses (common in residential leasing). A net lease requires the tenant to pay rent plus some or all operating expenses — single net (taxes), double net (taxes and insurance), and triple net (taxes, insurance, and maintenance) are variations. A percentage lease requires the tenant to pay a base rent plus a percentage of gross sales, commonly used in retail leasing. A ground lease is a long-term lease of land only, with the tenant responsible for constructing improvements.
• Leasehold estates — an estate for years has a definite start and end date and terminates automatically without notice — leasehold estates are a subset of the ownership interests covered in our property ownership practice questions. A periodic tenancy (month-to-month) automatically renews until either party gives proper notice to terminate. A tenancy at will exists with the landlord's consent and can be terminated by either party at any time. A tenancy at sufferance arises when a tenant holds over after the lease expires without the landlord's consent — the landlord may treat the holdover tenant as a trespasser or as a periodic tenant.
• Texas security deposit rules — under the Texas Property Code, a landlord must return the security deposit (or an itemized accounting of deductions) within 30 days after the tenant surrenders the property and provides a written forwarding address. A landlord who wrongfully withholds a security deposit may be liable for $100 plus three times the amount wrongfully withheld, plus attorney's fees. There is no statutory limit on the amount a landlord may charge as a security deposit in Texas.
• Landlord's duty to repair — under the Texas Property Code, a landlord must make a diligent effort to repair conditions that materially affect the physical health or safety of an ordinary tenant. The tenant must give written notice and allow a reasonable time to repair. If the landlord fails to repair after proper notice, the tenant may have remedies including lease termination, repair and deduct (subject to statutory conditions and limits, commonly tested as up to one month's rent), or rent reduction.
• Eviction procedure in Texas — a landlord must give the tenant written notice to vacate before filing a forcible detainer (eviction) lawsuit. The notice period depends on the lease terms, but a minimum of three days is required for non-payment of rent unless the lease specifies a different period. Certain forms of self-help eviction are prohibited in Texas — including removing a tenant's belongings or shutting off utilities to force them out. However, Texas does allow limited lockouts for nonpayment of rent if specific statutory procedures are followed, including providing notice and making a key available to the tenant upon request.
• Property management authority — a property manager who negotiates leases on behalf of an owner must be licensed and act through a sponsoring broker. Managing property for a fee requires a license; managing one's own property does not.
• Fair housing in rental transactions — the Fair Housing Act prohibits discrimination in the sale and rental of housing based on race, color, national origin, religion, sex, familial status, and disability. In rental transactions, landlords may not refuse to rent, impose different terms, or make discriminatory statements based on any protected class. Reasonable accommodations for tenants with disabilities are required.

What Are the Common Exam Traps in This Section?

• Estate for years terminates automatically — a lease with a fixed end date (estate for years) does not require notice to terminate. It ends on the date specified in the lease. Many candidates incorrectly assume notice is always required to end a lease.
• Texas security deposit — 30-day rule — the landlord has 30 days from the date the tenant surrenders the property AND provides a written forwarding address. Both conditions — surrender of the property and provision of a written forwarding address — must be satisfied before the 30-day period begins. If the tenant does not provide a forwarding address, the 30-day period does not begin.
• No statutory cap on security deposits in Texas — unlike some states, Texas does not limit how much a landlord can charge as a security deposit. The amount is set by agreement. Questions that suggest there is a cap are wrong.
• Self-help eviction limits — certain forms of self-help eviction are prohibited in Texas, including removing a tenant's belongings or shutting off utilities. Texas does allow limited lockouts for nonpayment of rent if specific statutory procedures are followed — the landlord must provide notice and make a key available to the tenant upon request.
• Triple net vs gross lease direction of expenses — in a gross lease, the landlord pays operating expenses. In a net lease, the tenant pays some or all operating expenses in addition to base rent. The more "nets," the more expenses the tenant pays. A triple net lease shifts almost all operating costs to the tenant.
• Property management license requirement — managing property for compensation requires a Texas real estate license and must be performed through a sponsoring broker. The exemption applies only to owners managing their own property. An unlicensed person cannot legally manage another owner's property for a fee.

How Ardelia Structures These Practice Questions

Ardelia's question bank contains 300+ Leasing & Property Management practice questions covering lease types, leasehold estates, Texas security deposit rules, eviction procedures, landlord repair obligations, and fair housing in rental transactions. Each question includes:

• A full explanation of why the correct answer is right
• Why each wrong answer is wrong — with particular attention to Texas-specific rules that differ from national standards
• The specific Texas Property Code provision or fair housing rule being tested
• Scenario-based questions that mirror the format used on the actual exam

The adaptive engine tracks your accuracy on Texas-specific leasing rules separately from national lease type questions. If you are missing security deposit timing questions, your sessions will route more Texas Property Code scenarios until your accuracy improves.

Frequently Asked Questions

What is the difference between a gross lease and a net lease?

In a gross lease, the tenant pays a fixed rent and the landlord is responsible for operating expenses such as property taxes, insurance, and maintenance. This is the most common structure in residential leasing. In a net lease, the tenant pays base rent plus some or all operating expenses. A single net lease adds taxes; a double net lease adds taxes and insurance; a triple net (NNN) lease adds taxes, insurance, and maintenance costs. The more nets, the more operating expense responsibility shifts to the tenant.

How long does a Texas landlord have to return a security deposit?

Under the Texas Property Code, a landlord must return the security deposit or provide an itemized written statement of deductions within 30 days after the tenant surrenders the property and provides a written forwarding address. Both conditions — surrender of the property and provision of a written forwarding address — must be satisfied before the 30-day period begins. A landlord who wrongfully withholds a deposit may be liable for $100 plus three times the amount wrongfully withheld, plus reasonable attorney's fees.

Can a landlord change the locks to evict a tenant in Texas?

It depends. Certain self-help eviction tactics are prohibited in Texas — including removing a tenant's belongings or shutting off utilities to force them to leave. However, Texas law does permit limited lockouts for nonpayment of rent if specific statutory procedures are followed: the landlord must provide notice and make a key available to the tenant upon request. For a full eviction, the landlord must follow the formal process: provide written notice to vacate, then file a forcible detainer lawsuit in justice court if the tenant does not leave.

Does a property manager need a real estate license in Texas?

Yes, if they are managing property for compensation on behalf of another person. Negotiating leases or collecting rents for a fee requires a Texas real estate license and must be performed through a sponsoring broker. The exemption applies only to owners managing their own property. An unlicensed person who manages another owner's property for compensation is acting in violation of TRELA.

Source: Pearson VUE Texas Real Estate Salesperson Candidate Handbook · Texas Real Estate Commission (trec.texas.gov)