Key Takeaways
- Security Deposit Limits and Uses: Georgia landlords can charge up to two months’ rent as a security deposit, including additional pet deposits, to cover unpaid rent, damages, cleaning, or lease violations. Assistance animals are exempt from pet fees under federal law.
- Proper Handling and Documentation: Landlords must provide a move-in inspection list, allow resident review, and store deposits in an escrow account or surety bond. Signed documentation protects both parties and prevents disputes.
- Returns and Deductions: Deposits must be returned within 30 days of move-out, with written deductions for unpaid rent, damages beyond normal wear and tear, cleaning, and other allowable costs. Normal wear and tear is defined by Georgia law, distinct from damages caused by negligence or abuse.
As a Georgia landlord, requiring security deposits from new residents is essential for protecting your investment. Deposits can cover unpaid rent, early lease breaks, excessive cleaning, or damages beyond normal wear and tear, preventing these costs from coming out of your pocket.
At the same time, Georgia law governs how deposits must be handled, including limits on amounts, allowable deductions, and deadlines for returning them. The following are the key basics of Georgia’s security deposit laws, presented by Keyrenter Marietta.
Maximum Security Deposit Limit
In Georgia, landlords are allowed to charge a security deposit of up to two months’ rent. This limit is designed to provide landlords with financial protection while keeping deposits fair and manageable for tenants.
For example, if your monthly rent is $1,500, the maximum security deposit you can request from a resident is $3,000. Security deposits can help cover potential costs such as unpaid rent, damages beyond normal wear and tear, or necessary cleaning when a tenant moves out.
It’s important to remember that any amount charged must comply with this legal limit. Collecting more than the allowed maximum can create legal issues and may prevent you from enforcing certain deductions. By adhering to the two-month limit, you ensure your rental practices remain compliant while still safeguarding your investment.
Additional Pet Deposit
Georgia landlords may charge an additional pet deposit, but the total security deposit cannot exceed two months’ rent. Like other deposits, it must be refunded to the resident after move-out, minus any allowable deductions for damages.
However, landlords must exempt disabled residents with assistance animals. Under the Federal Fair Housing Act, these residents are entitled to reasonable accommodations, which can include waiving pet fees. Service animals are not considered pets, and landlords cannot reject them or impose extra charges on their owners.
Move-In Obligations
Before a resident moves in, landlords must provide a detailed list of any existing damage in the rental unit and give the resident an opportunity to inspect the property. This process helps prevent disputes over the unit’s condition when the lease ends.
After the inspection, the resident has two options. They can agree with the list and sign it alongside the landlord, confirming the documented condition.
Alternatively, they can disagree with all or part of the list and submit a signed statement noting their concerns, which is encouraged under Georgia landlord-tenant law to ensure that both parties have a clear, legally recognized record of the property’s condition at move-in.
Security Deposit Holdings
In Georgia, landlords can hold security deposits in either an escrow account or by posting it as a surety bond.
If in an escrow, you must store the deposit in a state or federally-regulated account. You must use the account only for storing the residents’ security deposits.
If in a surety bond, the bond company must have authorization to operate in Georgia. You must also post it with the clerk of the Superior Court in the county where your rental property is located. The amount of the bond must be equivalent to the amount of security deposit held or $50,000, whichever is less.
Sale of Rental Property
Georgia’s security deposit law doesn’t specify what landlords must do after a change of property ownership. That said, all residents’ deposits are refundable at the end of the lease.
Security Deposit Deductions
In Georgia, landlords can make the following deductions from the security deposit after the resident moves out:
- Unpaid rent.
- Unpaid utilities.
- Unpaid late fees.
- Unpaid pet fees.
- Costs of breaching the lease.
- Costs of cleaning the unit if left in a dire state.
- Costs of fixing any damage exceeding normal wear and tear.
What does Georgia consider Normal Wear and Tear?
Unlike many other states, Georgia defines normal wear and tear as ordinary wear and tear that results from the use of the premises for the intended purposes. Examples include lightly dirtied grout, gently worn carpets, faded paint, and stained bath fixtures.
What does Georgia consider Damage?
By contrast, Georgia defines damage as deterioration that can occur on a property due to negligence, carelessness, or abuse. And this damage can result from either the resident, members of their household, guests, or invitees.
Examples of this type of damage include broken tiles, missing fixtures, and broken windows.
Security Deposit Returns
After the resident vacates the unit, you must return their security deposit within 30 days via first-class mail. If you have made deductions, you must include a written statement of deductions as well.
Conclusion
There you have it. These are the important basics of the Georgia security deposit laws that you should keep in mind when requiring security deposits from new residents. Staying legally compliant is key to successful landlording!
If you have a question or need expert property management help, look no further than Keyrenter Marietta. You can count on us for comprehensive property management solutions in Marietta, GA, and its surrounding areas. Get in touch to learn more!
Disclaimer: Please note that the information provided in this blog is intended for general guidance and should not be considered as a replacement for professional legal advice. It is important to be aware that laws pertaining to property management may change, rendering this information outdated by the time you read it.