Georgia's security deposit laws, codified in O.C.G.A. § 44-7-30 through § 44-7-37, contain important distinctions based on the size of a landlord's rental portfolio. Landlords who own more than 10 rental units or who use a property management agent face significantly stricter handling requirements than smaller landlords.

Official Law Citation: Official Code of Georgia Annotated (O.C.G.A. § 44-7-30 through § 44-7-36)

Deposit Limits While

Georgia law does not explicitly state a maximum dollar amount, standard practice and legal precedent generally limit residential security deposits to two months' rent. Some local jurisdictions, notably the City of Atlanta, may impose their own specific caps (e.g., 1.5 months' rent for certain properties).

Escrow and Handling Requirements

The obligations for holding security deposits in Georgia depend on the landlord's portfolio size:

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, in the amount of the security deposits held.
• Must provide the tenant with written notice, within 30 days of receiving the deposit, 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 requirement.
• Are exempt from the surety bond requirement.
• Must still comply with the return timeline and all itemization rules.

Move-In Inspection List

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. Both the landlord and tenant should sign this list. This document becomes critical evidence for both parties if there is a dispute over the security deposit at the end of the lease.

Failure to provide this list can significantly weaken a landlord's ability to justify deductions from the deposit for property damage.

Returning the Security Deposit

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

Permissible Deductions

A Georgia landlord may deduct from the security deposit for:

• Unpaid rent.
• Unpaid utility charges the tenant was responsible for.
• Costs to repair damages beyond normal wear and tear.
• Other breach of lease charges, if specifically outlined in the agreement.

The Tenant's Forwarding Address

The tenant has a duty to provide the landlord with a forwarding address in writing. If the tenant fails to provide a forwarding address, the landlord's obligation is to mail the deposit return to the tenant's last known address. If the deposit refund or statement is returned as undeliverable, the landlord must hold the funds for at least one year.

Penalties for Non-Compliance

If a landlord willfully fails to comply with Georgia's security deposit laws, the tenant can sue for damages. If the court finds the landlord acted in bad faith, the landlord may be liable for:

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

How Landager Helps

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

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