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Navigating the New Era of Property Ownership: Texas SB 38 and Its Benefits for Owners

As a leading property management company dedicated to maximizing the value and security of your real estate investments, we're always on the lookout for legislative changes that impact our clients.


With Texas Senate Bill 38 (SB 38) officially taking effect on January 1, 2026, we're excited to share how this eviction reform law strengthens property rights and makes owning rental properties in the Lone Star State even more advantageous.


In this blog, we'll break down what SB 38 entails, highlight its key benefits for property owners, and explain why this is a positive development for your portfolio.


Understanding SB 38: A Streamlined Approach to Evictions

SB 38 represents a significant overhaul of Texas' eviction procedures, aimed at protecting property owners from unauthorized occupants while clarifying and accelerating the legal process.


Sponsored by key legislators and signed into law by Governor Greg Abbott, the bill addresses longstanding frustrations with squatters—individuals who unlawfully enter and occupy properties without permission—and streamlines evictions for those not entitled to remain on the premises.


At its core, the law grants justice courts broader jurisdiction to issue writs of possession in eviction suits, removing outdated barriers and allowing for faster resolutions. It introduces efficiencies like electronic notices and shortened timelines for cases involving squatters or non-responsive tenants, ensuring that property owners can regain control more quickly.


Importantly, any eviction suits filed before January 1, 2026, remain under the previous rules, providing a smooth transition.


While the bill has sparked discussions about tenant protections, its primary focus is on empowering owners to safeguard their assets against illegal occupation, which has been a growing issue in urban areas like Houston and Dallas.


Backed by organizations like the Texas Apartment Association, SB 38 strikes a balance by maintaining procedural fairness while prioritizing property rights.


Key Benefits for Property Owners

For our clients—savvy property owners investing in Texas real estate—SB 38 delivers tangible advantages that enhance the appeal of ownership. Here's how it directly benefits you:

  1. Faster Removal of Squatters and Unauthorized Occupants: One of the bill's standout features is a dedicated process for evicting individuals who gained access unlawfully. This means less time and money lost to prolonged legal battles, reducing the risk of property damage or lost rental income. In the past, squatters could tie up courts for months; now, cases can move forward more swiftly, giving you peace of mind.

  2. Streamlined Eviction Timelines: The law reshapes the overall eviction process, allowing landlords to bypass certain trial steps if tenants fail to respond promptly. This efficiency minimizes holding costs and vacancy periods, helping you maintain steady cash flow and property value.

  3. Enhanced Asset Protection: By speeding up resolutions, SB 38 acts as a deterrent to potential squatters, making Texas properties a safer investment. For multi-unit owners or those with vacation rentals, this reduces liability risks and supports long-term asset growth.

  4. Cost Savings for Management and Owners: As your property management partner, we'll handle the updated procedures seamlessly, but the bill's reforms mean fewer court delays and lower legal fees overall. This translates to higher returns on your investment without added hassle.


In conclusion, SB 38 reinforces Texas' commitment to strong property rights, making it an ideal environment for owners to thrive. Whether you're a first-time investor or managing a large portfolio, these changes underscore the resilience and profitability of real estate ownership here.If you're concerned about how this affects your properties or need assistance updating leases and procedures, our team is here to help. Contact us today to ensure your investments are fully optimized under the new law.


Darling Property Management

214.471.3741



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