Georgia Security Deposit Laws

Key Takeaways

• Georgia landlords can charge up to 2x the monthly rent as a security deposit, including any pet deposits. All refundable deposits fall under the same legal rules.
• Security deposits must be stored in an escrow account or secured by a surety bond. Landlords must also provide a move-in inspection checklist and allow tenants to review and respond.
• Deposits must be returned within 30 days of move-out, with itemized deductions if applicable. Deductions must be reasonable and supported by documentation

Requiring a security deposit is a common and effective way for Georgia landlords to protect their rental property from potential financial losses, such as unpaid rent or tenant-caused damage.

However, collecting a deposit also means taking on specific legal responsibilities under Georgia’s landlord-tenant law.

These rules apply automatically if you require a deposit from your tenants. In this guide from Century 21 Magnolia , we’ll walk you through Georgia’s security deposit laws and what you need to do to ensure full compliance.

Keep reading to learn more!

Maximum Security Deposit Limit

In Georgia, landlords must abide by a certain limit when it comes to charging security deposits. As of July 1st, 2024, landlords are required to charge up to 2X the monthly rent as a security deposit.

This means that if you’re renting out a rental unit for $1,500 a month, then the maximum security deposit for such a unit must be $3,000.

Additional Pet Deposits

Some states allow landlords to charge extra deposits for pets in addition to the base security deposit. However, this isn’t the case in Georgia. The state definition of a security deposit also includes all other refundable security deposits.

If you collect a pet deposit , you must treat it the same way you would treat a security deposit.

Move-in Obligations

Georgia landlords must provide residents with a comprehensive list of existing damage to the unit (if any). You must also allow the resident to inspect the unit themselves.

And after the inspection , the resident may choose to either agree with the list or disagree with all or a portion of the list. If the resident does the latter, they must submit a signed statement stating the areas they disagree with.

Holding of Tenants’ Security Deposits

In Georgia, landlords have two options when it comes to how they must store tenants’ security deposits. The first option is placing the tenants’ security deposit in an escrow account.

The escrow account must either be in a state or federally regulated account. Also, you must only use it to hold tenants’ security deposits. The other option is storing the tenants’ security deposit in a surety bond.

The bonding company must have authorization to do business in Georgia. The bond must also be posted with the clerk of the Superior Court in the county where your property is situated .

The bond you post must be the total amount of all security deposits you’re holding for your residents or $50,000, whichever is less.

Sale of Rental Property

Some states dictate what landlords must do when it comes to tenants’ security deposits after the sale of a rental property . But, in Georgia, there is no state statute dictating what must be done.

Be that as it may, any security deposit you collect from a resident in Georgia must be refunded, whether partially or wholly.

Security Deposit Deductions

As a landlord in Georgia, you can make certain deductions from a resident’s security deposit. Examples of allowable deductions include the following:

• Unpaid rent.
• Unpaid utilities.
• Unpaid late fees.
• Unpaid pet fees.
• Costs of cleaning the unit.
• Costs resulting from breaching the rental agreement.
• Costs resulting from abandoning the unit.
• Costs of damage exceeding normal wear and tear.

There is no legal limit on the amount of charges a landlord can make in this regard. The only requirement is that they must be reasonable and done in good faith.

Returning a Tenant’s Security Deposit in Georgia

After the resident vacates their rented premises in Georgia, you must return their security deposit within 30 days of doing so. You must send the deposit, or whatever portion remains, to their last known forwarding address.

If you have made any deductions, you must also include a written statement and any supporting documentation.

Conclusion

There are numerous benefits to requiring residents to pay a security deposit as part of the initial move-in costs. That said, you must also ensure that you abide by all the responsibilities that come with doing so.

If you have a question or would like to hire an expert property manager, Century 21 Magnolia can help. We are a leading property management company that can help to professionally manage your Georgia or South Carolina rental property. Get in touch to learn more!

Disclaimer: This blog is for informational purposes only and should not be used as a substitute for legal advice from a licensed Utah attorney. Laws can change, and this post may not reflect the most current regulations at the time of reading. For specific questions or assistance with property management, reach out to Century 21 Magnolia.