Georgia's strict residential security deposit requirements-including the escrow mandate for landlords with 10+ units, the move-in inspection list, and the 30-day return deadline with triple-damage penalties-are codified in O.C.G.A. § 44-7-30 through § 44-7-37. These residential-focused statutes generally do not extend their protective scope to commercial tenancies.

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

Official Law Citation: General commercial contract law in Georgia.

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.

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 automatically apply to commercial leases.

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.

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