Texas Senate Bill 140 (SB 140) has become one of the most confusing new laws in multifamily marketing. Framed as a consumer protection measure, SB 140 creates a set of new compliance requirements for businesses using SMS to reach prospective renters.
Let’s break down what this law means, where the risks lie, and what steps operators should consider taking right now.
TLDR;
For those of you that want the quick hit version, take a look at the summary below.
- SB 140 is a new law in Texas that creates stricter criteria on what legally sending marketing SMS messages to residents in Texas looks like. Violation of SB 140 carries hefty fines.
- Nurture Boss’s built in compliance already checks the boxes around opt-in/out, quiet hour times, and record keeping. If you’re a Nurture Boss customer and want to know more about our SMS compliance today, reach out to set up time to chat.
- Operators would need to register with Texas and pay various fees and bonds in order to fully comply with SB 140 totally around $10,200.
- SB 140 is still be fleshed out in the courts and the future of this new regulation is unknown.
Why SB 140 Matters for Multifamily
SMS is one of the most effective ways apartment communities engage with prospective renters. From scheduling tours to following up on leads, texting drives faster response times and stronger conversion rates than email or phone.
But SB 140 changes the rules in Texas. Even if you’re an operator headquartered outside the state, if you send texts to Texas residents, you fall under this law’s scope.
That means multifamily teams now face new compliance obligations, added legal risk, and potential disruption to proven leasing workflows.
Key Compliance Requirements
SB 140 imposes obligations that go well beyond standard federal TCPA compliance. In the list below, we have added a green checkmark (✅) to areas Nurture Boss already has you covered. To send marketing texts into Texas, operators must:
- Register as a telephone solicitor with the Texas Secretary of State.
- Pay a $200 annual registration fee.
- Post a $10,000 security bond (deposit, letter of credit, etc.), unless exempt.
- Obtain prior express written consent before sending any marketing messages. ✅
- Include a clear opt-out mechanism in every message, honoring requests immediately. ✅
- Restrict sending to 9 a.m.–9 p.m. local Texas time. ✅
- Maintain detailed records of consents, opt-outs, and message history. ✅
- Respect the Texas No-Call list where applicable.
Failure to comply exposes operators to steep penalties—and uniquely in Texas, consumers have a private right of action under the Deceptive Trade Practices Act, meaning they can personally sue for violations.
Risks Beyond Compliance
What makes SB 140 especially tricky is the uncertain enforcement environment. The law is vague in parts, and experts expect “shakedown lawsuits” to be the primary enforcement mechanism rather than active regulators.
Registering may reduce risk, but it also excludes you from ongoing legal challenges. For example, the eCommerce Innovation Alliance (EIA) has filed suit arguing that SB 140 is unconstitutional and burdens small businesses. If their case succeeds, the bond, registration, and financial penalty requirements could be struck down
Operators must balance compliance today with flexibility for future changes.
Exemptions to Note
Some messages are excluded from SB 140’s scope. Exemptions include:
- Communications with existing or former customers (under certain conditions).
- 501(c)(3) nonprofits.
- Educational or financial institutions.
But for multifamily operators, marketing to prospects almost always requires full compliance. Relying on exemptions is risky without legal review.
Practical Implications for Leasing Teams
So what does this mean on the ground for property management teams?
- Operational friction – Leasing staff and marketing vendors will need to verify that SMS campaigns meet consent and quiet-hour requirements.
- Increased costs – Registration fees, bonds, and compliance overhead add to per-unit marketing costs.
- Risk management – Multifamily owners must weigh the potential cost of lawsuits against the operational benefits of SMS.
- Vendor due diligence – If you use an AI leasing assistant, chatbot, or SMS platform, you need to confirm that your vendor is fully compliant with SB 140.
What Multifamily Operators Should Do Now
- Consult counsel to understand whether your current SMS practices comply.
- Audit your consent records—make sure you can prove every opt-in.
- Update quiet-hour rules in your SMS platform to align with Texas law.
- Evaluate registration—though imperfect, it may reduce immediate risk.
- Engage with your vendors—ensure any third-party SMS provider or AI leasing assistant is SB 140 compliant.
Each operator needs to evaluate the new law, consult with counsel, and make their own decision on what proper compliance looks like.
The Bottom Line
SB 140 is reshaping SMS marketing in multifamily. While intended as consumer protection, its vague language and heavy penalties create uncertainty for operators just trying to reach prospective renters.
Until legal challenges resolve, multifamily operators should treat compliance as a priority. By tightening up consent practices, auditing messaging workflows, and working closely with trusted vendors, you can protect your properties while continuing to leverage SMS as a critical leasing tool.
