Operating under the foundational authority of the Georgia State Constitution (ratified 1982 and effective 1983), commercial security deposits in Georgia are governed primarily by contract law rather than the strict residential statutes found in O.C.G.A. Title 44, Chapter 7. While residential mandates—including the escrow requirement for landlords with 10+ units and the 30-day return deadline—are codified in O.C.G.A. § 44-7-30 through § 44-7-37, these protective measures do not apply to commercial tenancies. Per O.C.G.A. § 44-7-30, commercial tenancies are excluded from Article 2 mandates as they do not involve property used as a "dwelling place."

Commercial security deposits in Georgia are governed almost entirely by the terms negotiated and documented in the commercial lease agreement.

Official Law Citation: O.C.G.A. Title 13 (Contracts); O.C.G.A. § 44-7-30.

Statutory Limits on Commercial Security Deposits

There is no statutory maximum limit on the amount a landlord can charge for a commercial security deposit in Georgia.

While O.C.G.A. § 44-7-30.1 (eff. July 1, 2024) limits residential deposits to two months' rent, this limit does not apply to commercial properties. A commercial landlord can negotiate any deposit amount based on the risk profile of the tenant, the cost of tenant improvements, or the tenant's credit history.

Handling and Commingling of Funds

Georgia law does not require commercial landlords to hold security deposits in separate escrow accounts. Unless the lease explicitly demands otherwise:

• The landlord may commingle the commercial security deposit with operating funds.
• No interest is owed to the tenant.
• No surety bond is required, regardless of portfolio size.

Best Practice: Maintaining security deposits in a distinct ledger or separate bank account is still a fundamental best practice to ensure liquidity upon lease termination and to simplify accounting.

Returning the Commercial Security Deposit

The strict 30-day return deadline and the threat of triple-damage penalties under the residential statute do not apply to commercial leases. Legal disputes regarding the return of commercial security deposits are typically adjudicated in the Magistrate Court (for claims up to $25,000 per O.C.G.A. § 15-10-2 as amended in 2026) or the State/Superior Court of the county where the property is located.

The Lease Dictates the Timeline

The deadline for returning the deposit must be clearly stated within the commercial lease. Commercial leases frequently allow 60 to 90 days post-termination for the landlord to finalize CAM reconciliations, damage assessments, and final utility billings before returning the deposit.

Permitted Deductions

Landlords may deduct from the commercial security deposit for any defaults outlined in the lease, commonly including:

• Unpaid base rent, percentage rent, or additional rent.
• Unpaid NNN pass-through charges (taxes, insurance, CAM).
• Costs to repair damages beyond normal wear and tear.
• Costs to restore the premises to its original condition (if required by the lease).
• Attorney's fees incurred due to the tenant's breach.

See our Commercial Lease RequirementsPreview unavailable guide.

How Landager Helps

Landager tracks lease terms, required compliance items, and accounting records - making it easy to stay compliant with Georgia regulations.

Back to Georgia Landlord-Tenant Laws OverviewPreview unavailable.