Houston, Texas is known for its vibrant and fast-growing real estate market. As part of the rental agreement, many landlords in Houston include a unique clause called the "Houston Texas Clause Providing for the Periodic Increase in the Tenant Security to Reflect Increases in Base Rent." This particular clause ensures that the tenant's security deposit will be periodically adjusted to match any increases in the base rent. The purpose of this clause is to protect both parties involved in the lease agreement. Landlords can benefit from this clause as it allows them to account for inflation and rising rental rates, ensuring that they are adequately compensated for the property they are renting. On the other hand, tenants can feel secure knowing that their security deposit remains proportional to the increased rent over time. Different types of clauses addressing periodic increases in the tenant security deposit to reflect increases in the base rent may exist: 1. Fixed Percentage Increase Clause: This type of clause stipulates a specific percentage by which the security deposit will be increased along with the base rent. For example, if the base rent increases by 5%, the tenant's security deposit will also increase by 5%. 2. CPI Adjustment Clause: Some rental agreements in Houston may include a Consumer Price Index (CPI) adjustment clause. This clause ensures that the tenant's security deposit is adjusted based on the changes in the local CPI or inflation rate. This type of clause allows for more flexibility, as it reflects the actual changes in the cost of living. 3. Fixed Amount Increase Clause: In certain cases, landlords may opt for a fixed amount increase clause. This means that the security deposit will increase by a predetermined fixed amount with each base rent increase. For instance, if the rent goes up by $100, the tenant's security deposit will also increase by $100. Regardless of the specific type of clause used, it is essential for both parties to clearly understand its terms and implications. Prior to signing a lease agreement in Houston, tenants should carefully review and negotiate this clause to ensure it aligns with their financial situation and rental needs. Seeking legal advice can also be beneficial to fully comprehend the particulars of the clause and its compatibility with local rental laws in Houston, Texas.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.