The property owner has seven days to make a decision on that rental application, otherwise the applicant is deemed rejected. Section 92.352 of the Texas Property Code says that the seven-day clock begins on the date the applicant submits a completed rental application on an application form furnished by the property owner, or the date the property owner accepts an application deposit if the property owner did not furnish an application form.
Any application deposit should be refunded to the applicant if the applicant was rejected. Remember, an application deposit is a sum of money that is given to the property owner in connection with the rental application that is refundable if the applicant is rejected, whereas an application fee is a nonrefundable sum of money given to the property owner to offset the costs of screening an applicant.
Also, at the time the applicant was provided with a rental application, the property owner was required to give him printed notice of the owner's tenant-selection criteria. If the applicant was rejected and the property owner failed to make the criteria available, the application fee and any application deposit must be returned. Any wrongful withholding will subject the property owner to liability ($100, three times the amount wrongfully retained, and the applicant's reasonable attorney's fees).
- Texas Association of Realtors, Q&A -
Hope this helps,
ULTIMA Real Estate