Disclaimer: This content is intended for general informational purposes only and should not be interpreted as legal advice. The author is not a licensed attorney, and readers should consult a qualified legal professional for guidance on their specific circumstances.
Fort Worth’s residential rental market continues to grow as new residents and investors seek opportunities in a rapidly growing city. With this growth comes new challenges, including heightened attention to unauthorized occupancy and more complex eviction cases that strain property owners.
Texas Senate Bill 38 (SB 38), passed in 2025, brings significant reform to these issues, offering landlords and property managers more streamlined procedures to protect their investments. As the law goes into effect on January 1, 2026, preparation is key.
At Traverse Property Management, we’re helping Fort Worth landlords understand these changes and prepare early to maintain compliance and rental income stability.
Key Takeaways
- Senate Bill 38 can reduce eviction timelines in certain cases and enhance legal protections for landlords.
- The law takes effect January 1, 2026, so landlords should update leases and internal processes now.
- Property managers must adjust communication, filing, and documentation standards for compliance.
- Early preparation helps minimize risk and supports stronger financial outcomes for landlords.
Core Law Changes and Overview
Senate Bill 38 was introduced in response to growing squatter problems and the frustrations landlords faced with long, complicated eviction procedures. Prior to its passage, unauthorized occupants could remain in properties for extended periods while cases moved through local courts. Lawmakers aimed to simplify these cases and protect property owners from financial harm.
The new law, effective January 1, 2026, provides courts and property owners with faster procedural tools in certain unauthorized-occupancy cases. SB 38 streamlines eviction filings, clarifies notice requirements, and defines new classifications for “unauthorized occupants.”
These updates help landlords distinguish between legitimate tenants and those occupying the property without a lease agreement. This distinction reduces confusion and accelerates legal resolutions.
The new process also supports law enforcement in removing squatters more swiftly, helping property owners avoid extensive revenue loss or property damage. Fort Worth landlords should begin reviewing their leases and preparing documentation now to ensure smooth compliance once the law takes effect.
Legal and Administrative Implications
Senate Bill 38 changes how eviction and squatter removal cases move through Texas courts. It introduces a faster, more transparent system that benefits landlords but also requires careful compliance.
Impact on property managers
For property managers, SB 38 means updating internal workflows and coordinating closely with legal professionals.
At Traverse Property Management, we’re enhancing our processes to ensure all filings, notices, and documentation comply with the new standards. We also work with owners to keep their records organized, much like we do when guiding them through tenant screening best practices. Proper documentation remains one of the best defenses for landlords under the new system.
Clarify When Law Enforcement Can Act on Unauthorized Occupancy
A major improvement under SB 38 is law enforcement’s ability to remove squatters quickly once documentation is verified. This eliminates months of waiting and prevents further property damage or rental income loss.
In fact, according to Eviction Lab, the metropolitan area around Fort Worth logged approximately 46,207 eviction filings over the past year, representing about 10% of renter households.
The law provides a clear process for reporting and verifying unauthorized occupancy, ensuring that officers can act promptly.
Penalties or liabilities for landlords who fail to comply
Even with stronger landlord protections, compliance remains critical. Mistakes in notice periods, documentation, or filings can delay evictions or create legal exposure. We recommend that landlords work closely with their property management team to ensure accuracy, maintain digital records, and follow all updated timelines.
Tenant rights under the new law
SB 38 maintains tenant protections by requiring due process for valid leaseholders. Landlords must continue to provide proper notice and avoid any actions that could qualify as wrongful eviction. This balance ensures fairness while still expediting legitimate removals.
Financial and Risk Management
For Fort Worth landlords, the financial implications of SB 38 are substantial. If cases qualify under the updated process, landlords may see shorter timelines, lower costs, and faster rent recovery. The law’s efficiency also strengthens investor confidence in the Fort Worth market.
Steps Fort Worth landlords can take to prepare legally and financially
Landlords should update their leases to clarify occupancy limits, contact terms, and property access rights. Keeping up-to-date tenant files and insurance coverage will provide additional protection. Establishing clear tenant communication protocols is essential, especially as new rules take effect.
In addition to legal changes, landlords should remain vigilant against potential fraud. Reviewing our article on rental fraud prevention can help protect properties from deceptive applicants or unauthorized occupants.
Potential impact on property values and investor confidence
Stronger property protections typically lead to higher investor confidence. SB 38 enhances Fort Worth’s reputation as a landlord-friendly city by improving consistency and transparency in legal processes. This stability encourages more investment and supports long-term property value growth across the region.
Operational and Management Strategies
Operational readiness will be vital as SB 38 takes effect. Landlords should focus on revising lease agreements, updating internal processes, and training staff on new procedures. Key updates should include notice language, eviction steps, and documentation standards.
We’re working closely with our clients to implement new policies, communicate legal updates, and provide ongoing guidance. Preventing squatting will also require proactive measures such as regular property inspections, security upgrades, and detailed tenant verification. Maintaining organized records (photos, inspection notes, and correspondence) will help landlords act quickly and legally.
For property owners evaluating rent adjustments before 2026, our guide on raising rent without losing tenants provides effective strategies that keep residents satisfied while staying compliant with state regulations.
Local and Market Context
Fort Worth’s housing market continues to attract investors and residents, making it one of the most competitive rental areas in Texas. Senate Bill 38 supports that growth by providing greater legal certainty for landlords. With better protections, property owners can plan long-term strategies and invest with more confidence.
Benefits for investors
The improved eviction framework under SB 38 reduces vacancy periods, minimizes legal risk, and enhances income predictability. These advantages will likely increase investment interest in the Fort Worth area, further stabilizing the city’s housing market. For landlords, it means greater peace of mind and a more sustainable approach to property management.
FAQs about Senate Bill 38 in Texas
What steps should Fort Worth landlords take legally and financially before Senate Bill 38 in Texas takes effect?
Landlords should review leases, confirm tenant documentation, and coordinate with their property management company to update policies before January 2026.
How do legal costs compare to potential savings under the new eviction system introduced by Senate Bill 38 in Texas?
Legal costs are expected to decrease because of faster timelines and simplified procedures, allowing landlords to recover rent sooner.
Does Senate Bill 38 in Texas change the appeals process for tenants?
The appeals process remains available, but shorter case timelines make it more efficient for both parties.
Can landlords update leases mid-term to comply with Senate Bill 38 in Texas?
Landlords may issue lease addenda to clarify policies in line with SB 38, but major changes should be made at renewal or with tenant consent.
Do property managers need additional training to comply with Senate Bill 38 in Texas?
Yes, property managers should undergo updated legal training to ensure full compliance with filing and communication standards under the new law.
Prepare Early for the 2026 Implementation of SB 38 in Texas with Traverse Property Management!
Senate Bill 38 represents one of the most significant updates to landlord protections in Texas in recent years. The law’s emphasis on efficiency, clarity, and enforcement benefits property owners and tenants alike by creating a more balanced and reliable system. By preparing early, landlords can protect their income and avoid disruptions once SB 38 takes effect in 2026.
For landlords seeking professional help navigating these changes, Traverse Property Management offers full-service support, including:
- Legal coordination and eviction management
- Lease updates and compliance reviews
- Tenant screening and occupancy documentation
- Property inspections and maintenance oversight
Partner with Traverse Property Management today to ensure your properties remain compliant, protected, and profitable under the new Texas eviction law.
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