Under the constitutional authority established on January 2, 1788, Georgia's residential security deposit framework was significantly strengthened by the Safe at Home Act (2024). These regulations, codified in O.C.G.A. § 44-7-30 through § 44-7-37, now include a statewide cap on deposit amounts and continue to impose strict handling requirements based on the size of a landlord's rental portfolio.

Official Law Citation: Official Code of Georgia Annotated (O.C.G.A. § 44-7-30 through § 44-7-37)

Statutory Deposit Limits

Effective July 1, 2024, Georgia law (O.C.G.A. § 44-7-30.1) explicitly caps security deposits for residential leases. Landlords may not demand or receive a security deposit that exceeds the equivalent of two months' rent. This statewide limit applies to all residential tenancies and supersedes any previous local practices or lack of statutory caps.

Escrow and Handling Requirements

The obligations for holding security deposits in Georgia depend on the landlord's portfolio size and management structure (O.C.G.A. § 44-7-31):

Landlords with 10+ Units (or using a Property Manager)

• Must place security deposits in an escrow account at a state or federally regulated depository institution, held solely for security deposits.
• OR post a surety bond with the clerk of the superior court in the county where the property is located.
• Must provide the tenant with written notice identifying the location of the escrow account or the existence of the surety bond.

Landlords with Fewer than 10 Units (Self-Managed)

• Are exempt from the escrow account and surety bond requirements under O.C.G.A. § 44-7-36.
• Must still comply with the 30-day return timeline and all itemization rules.

Move-In Inspection List (O.C.G.A. § 44-7-33)

Landlords with 10+ units (or using a property manager) must provide the tenant with a written list of pre-existing damages to the unit before or at the time of move-in. The tenant has the right to inspect the premises and sign the list. Failure to follow this procedure prevents the landlord from withholding any portion of the security deposit for damages.

Returning the Security Deposit (O.C.G.A. § 44-7-34)

Upon termination of the tenancy, the landlord must return the full security deposit—or provide an itemized written statement of deductions—within 30 days of the tenant vacating the property.

Permissible Deductions

A Georgia landlord may deduct for:

• Unpaid rent.
• Unpaid utility charges.
• Costs to repair damages beyond normal wear and tear.
• Other breach of lease charges specified in the agreement.

The Tenant's Forwarding Address

If the tenant fails to provide a forwarding address, the landlord must mail the statement/refund to the last known address. If returned as undeliverable, the landlord must hold the funds for at least 90 days (though holding for one year is recommended to comply with unclaimed property standards).

Penalties for Non-Compliance (O.C.G.A. § 44-7-35)

If a landlord willfully fails to comply with the escrow or return rules, they forfeit the right to withhold any portion of the deposit. If the court finds the landlord acted in bad faith, they may be liable for:

• Up to three times the amount of the portion wrongfully withheld.
• Reasonable attorney's fees.

How Landager Helps

Landager tracks lease terms, required move-in/move-out inspections, and escrow notifications, ensuring you remain compliant with the 2024 Safe at Home Act and core Georgia statutes.

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