Georgia Security Deposit Laws: A Breakdown (Updated 2024)
It’s critical for landlords and tenants alike to understand Georgia security deposit laws. After all, collecting, handling, and returning security deposits is a huge part of the rental process. At the start of a tenancy, landlords collect a deposit, hang onto it throughout it, and return the money when the lease ends unless there’s extensive property damage or unpaid rent money. Nearly every state has its own laws regarding how much a landlord can charge, how they must hold the deposit, and when it must be returned. Today, we’ll break down exactly how Georgia security deposit laws work in easy terms.
Covered in This Blog Post:
- What Is a Security Deposit for Rental Properties?
- How Much Can a Landlord Charge for a Security Deposit in Georgia?
- Security Deposit Rules for Landlords in GA
- What Should Tenants Do If Their Deposit Isn’t Returned?
- FAQs About Georgia Security Deposit Laws
What Is a Security Deposit for Rental Properties?
A security deposit is money that a tenant pays to the landlord or Atlanta property managers before moving into a rental unit. The deposit protects the landlord against potential damages to the property, unpaid rent, or other lease violations.
Once the tenant pays the security deposit, the landlord holds it for the duration of the lease. At the end, it goes back to the tenant unless there are damages or unpaid expenses. In that case, the landlord may keep some or all of the deposit, depending on the lease agreement or the extent of damages/unpaid fees.
How Much Can a Landlord Charge for a Security Deposit in Georgia?
The amount that landlords can charge for a security deposit depends on state and local laws. Most states have specific regulations that set a maximum limit on the amount that can be charged for a security deposit. The limit is usually determined by the monthly rent. For instance, some states may cap the security deposit amount at one or two times the monthly rent amount.
Georgia security deposit laws have changed recently. More specifically, The Safe at Home Act, which took effect on July 1, 2024, changed Georgia security deposit laws regarding how much a landlord may charge for a security deposit. Prior to this Act, there was no limit to how much landlords could charge. However, as of July 1, landlords may not charge more than two months’ rent for a security deposit.
Security Deposit Rules for Landlords in GA
Laws regarding security deposits can vary depending on what state or local area you’re in. However, most have similar rules that protect both landlords and tenants’ best interests.
In terms of Georgia security deposit laws, landlords must give tenants a move-in checklist of existing damage to the rental property before they move in. Tenants are allowed to inspect the property, note the damages, and discuss any discrepancies before signing it. After the tenant inspects the unit and verifies the existing damage, the landlord and tenant will sign the checklist.
Once this is done, the landlord can request a security deposit equaling no more than two months’ rent. Then, there are legal requirements for holding that deposit, returning the deposit, and how the landlord can use it.
Legal Requirements for Holding a Security Deposit
While they may differ a bit from state to state, the legal requirements for holding a security deposit are generally the same. Georgia security deposit laws are no exception.
With Georgia security deposit laws, landlords must hold the tenant’s security deposit in an escrow account in a state or federally regulated depository and provide tenants with written notice of the location of the escrow account where the deposit is held.
Alternatively, landlords may post a surety bond for the deposit amount with the local Clerk of the Superior Court. In this case, they must inform tenants about the bond.
According to Georgia security deposit laws, if the landlord does not comply with these holding rules, they will lose the right to withhold the tenant’s security deposit.
How Should a Landlord Return a Security Deposit
Once the lease has expired and the tenant moves out, landlords must inspect the rental property within three business days and provide tenants with an itemized list of damages, if there are any. After this, tenants can inspect the property again and agree or dispute the damages listed.
If any deductions from the deposit are made for repairs, landlords must provide tenants receipts or an itemized list of expenses. Once it’s all said and done, landlords have one month to return the tenant’s security deposit or explain why the deposit is being kept.
What Can the Deposit Be Used For?
Security deposits can only be used for the following purposes.
- To cover unpaid rent
- Fix damages beyond normal wear and tear
- Cleaning fees necessary to return the unit to its original condition
What Should Tenants Do If Their Deposit Isn’t Returned?
If a tenant’s security deposit is not returned within the legal timeframe, or if any amount is unjustly withheld, there are several steps they can take. First things first, it’s crucial to check the lease agreement for specific terms regarding the security deposit. Next, read up on Georgia security deposit laws to fully understand the rights and responsibilities of both parties.
If the landlord is not responsive or refuses to return the security deposit without explanation, tenants can take them to small claims court. Depending on how many units the landlord owns, tenants may request compensation up to three times the amount kept. So, if the security deposit was $750, the tenant may be rewarded up to $2,250.
FAQs About Georgia Security Deposit Laws
- How Much Can Landlords Charge for a Security Deposit?
- Landlords in Georgia can charge no more than two months’ rent for a security deposit.
- Can a Security Deposit Be Used to Pay for Last Month’s Rent?
- Yes, if the landlord and tenant agree upon it, landlords can withhold the deposit to cover the last month’s rent.
- How Long Do Landlords Have to Return a Deposit in Georgia?
- Landlords have one month after the end of the tenancy to return the tenant’s security deposit or provide an itemized list of damages.
- What Happens if the Landlord Does Not Return the Deposit?
- The landlord may face legal consequences and be required to pay up to three times the security deposit amount.
Ensure Compliance with Professional Property Management in Atlanta
Staying up to date with Georgia security deposit laws is crucial for rental owners with properties in Atlanta and surrounding areas. However, rental owners with multiple properties may have a hard time keeping up with all of the applicable laws and complexities of renting to tenants, from big pest control laws to applicable eviction laws. That’s why hiring a comprehensive rental management team can help.
Bay Property Management Group has a team of experts who help property owners through every step in the rental process. From marketing to tenant screening, rent collection, maintenance, and more, we’ve got you covered. Contact BMG today to learn more about our professional property management services in Atlanta, Georgia.
