Which addenda should you read before signing?
A new-build lease in Texas usually runs on a Texas Apartment Association (TAA) lease plus a stack of addenda, and the addenda are where cost and risk sit. On a building with a 10.8-week special, the board median on Oct 25, 2026, a single repayment clause can put several thousand dollars at stake if your plans change. If you read only eight pages before you sign, read these.
This is also why we read the addenda with you before any lease is signed. Here’s the checklist we use.
The eight red flags
| Addendum | What to check | Why it matters |
|---|---|---|
| 1. Concession or special | Value in dollars, how it’s applied, payback terms | Free rent may be owed back on early exit |
| 2. Utility / RUBS | Billing method, past bills, service charge | Water can add a monthly charge you didn’t plan for |
| 3. Required fees | Every required fee, per unit or per person | Fees sit outside rent; median $120.50 at 12 board buildings |
| 4. Renewal terms | Notice period, how renewal rent is set | Renewals price from base rent |
| 5. Early termination | Fee, notice, and whether the concession is repaid too | Two charges can stack |
| 6. Military clause | Notice and documents for early release | Your right to end the lease early under Texas law |
| 7. Late fees | Grace period, initial and daily fees | Texas caps late fees; check the stated amounts |
| 8. Flood disclosure | Floodplain status and flood history | Required at or before signing under §92.0135 |
1. Concession repayment
The concession addendum says how the special is applied (upfront free months or a monthly credit) and what happens if you leave early. Many say the full concession is repaid on early termination, a lease break, or a skip. Some prorate it. A few have none. This is the clause to read twice; our guide to concession payback clauses shows the exposure by month.
2. Utility billing and RUBS
If the property bills water, sewer, or trash, the utility addendum states the method: submeter or allocation (RUBS). Under PUCT rules (16 TAC Ch. 24), the property must disclose the allocation method and past bills, and the service charge on submetered water is capped at 9%. Ask for a recent average for your unit size.
3. Required fees
The fee addendum lists required monthly fees such as tech packages, valet trash, pest control, and package lockers. Austin’s ordinance No. 20260528-045 requires owners of 50+ units to itemize fees and advertise rent plus required fees from Oct 1, 2026. Check that the addendum matches the fee sheet you were given. See required monthly fees for typical amounts.
4. Renewal terms
Renewal clauses set the notice window and sometimes how a renewal offer is made. Renewals at new buildings price from base rent, not the discounted number, so year two can jump: about 26% at the median special and the same base. We show year two at 0% and +3% before you sign.
5. Early termination
Some leases offer a buyout: a fee, often equal to one or two months of rent, plus notice. Read whether paying it also triggers concession repayment. If both apply, the cost of leaving early can be much higher than the buyout alone.
6. Military clause
Texas Property Code §92.017 lets service members and certain dependents end a lease early in specific situations, such as permanent change of station orders. The lease’s military clause states the notice and documents required. If it applies to you, keep a copy of your orders with your lease.
7. Late fees
Texas limits late fees to a reasonable amount and requires a grace period before they apply. The lease states the initial fee, any daily fee, and the grace period. Make sure autopay timing lines up with the due date.
8. Flood disclosure
Texas Property Code §92.0135 (HB 531, effective Jan 1, 2022) requires a floodplain and flood-history notice at or before signing. SB 2349 (effective Sept 1, 2025) requires both parties to sign it; leases under 30 days are exempt. No board address was in FEMA’s 100-year floodplain on Oct 25, 2026. Two buildings, Cascades at Onion Creek and Lirica, sit in the FEMA 0.2% area. We point the notice out and read it with you.
Get the special in writing
Before you sign, the special, its end date, and the minimum lease term should appear in the concession addendum. If it’s only in an email or a flyer, ask for it to be added.
What we do at signing
We read the concession and fee addenda with you, check the utility method, and get the special noted in writing. If something later doesn’t match, such as the special missing from the ledger or a fee that wasn’t disclosed, we take it up with the community in writing and report back. You can see how we decode each special on specials decoded.
