Georgia security deposit laws for landlords: escrow for larger owners, the move-out list and treble damages
Georgia landlords may not require a deposit of more than two months' rent, and every landlord, however many units, must return the deposit within 30 days after the lease ends or the tenant leaves, whichever is last. Owners of more than ten rental units, and anyone who uses a management agent, also have to hold deposits in escrow or post a bond and run a formal move-out inspection. The Georgia Department of Community Affairs' landlord-tenant handbook, revised August 29, 2024, describes these rules under the state's security deposit statutes, O.C.G.A. 44-7-30 through 44-7-37.
What does Georgia allow a landlord to collect?
The handbook says a landlord cannot require a security deposit of more than two months' rent. Advance rent that is refundable under the lease may be treated as part of the deposit. Application fees and deposits that hold an apartment until the lease is signed are not security deposits and usually are not refundable. A pet deposit may be refundable as part of the security deposit or a separate nonrefundable fee, depending on the lease, so the lease should say which it is.
When does a Georgia landlord need an escrow account?
The handbook sets the line by size and by who manages. Landlords who own more than ten rental units, counting units owned by a spouse or children, or who contract with a management agent, must place deposits in a bank escrow account used only for security deposits, or post a bond with the clerk of the superior court. If the deposit is in escrow, the tenant gets written notice of where it is kept. Smaller owners who manage their own units are outside that part of the rule, but they still owe the 30 day return.
On a sale, the former owner must either transfer the deposit to the new owner, who becomes responsible for it, or refund it to the tenant. If neither happens the tenant can sue to recover it, and the handbook suggests the tenant first write to both owners for information. See security deposits when an apartment building is sold.
What is the move-out inspection and list?
The same larger-landlord group (more than ten units, or any agent) must give a formal inspection at move-out or give back the deposit. Within three business days after the lease ends, or a reasonable time after the landlord finds out the tenant left, the landlord inspects and prepares a signed list of all damage with the estimated dollar value. The tenant may inspect within five business days after termination and must sign the list or write down the items they disagree with.
This list matters in court. The handbook says that if the tenant agrees with the list, the tenant cannot later contest the landlord keeping the deposit for that damage, and a tenant suing can recover only amounts held for damage the tenant disagreed with on the list.
What can I deduct, and how do I price it?
You may not keep the deposit for normal wear and tear, meaning the slight damage that happens over time from ordinary use. You may keep it for damage caused by the tenant, household, pets or guests, whether on purpose, by accident or from carelessness; unpaid rent or late charges; unpaid pet fees; unpaid utilities that were the tenant's under the lease; and damage to the landlord from early termination. Amounts must be reasonable, and the repair or replacement amount should reflect the condition at move-in.
Example a made-up tenant ruins a ten year old carpet, and a new one would cost $2,000. The handbook says to charge the value of the old carpet, not the cost of a new one. If the old carpet was worth about $600 in its worn state, a $600 charge is defensible and a $2,000 charge risks being found unreasonable.
If damages exceed the deposit, you may sue the tenant for the rest.
What are the 30 days and 90 days?
Return the deposit within thirty days after the lease ends or the tenant leaves, whichever is last. If you hold part for damage, within the same thirty days send notice identifying the damage, the estimated dollar amount and a refund of the difference. Mail the deposit and statement to the last known address even if that is the vacated rental. If the mail comes back undeliverable and you cannot find the tenant after reasonable effort, the handbook says the deposit belongs to the landlord 90 days after it was mailed.
What if I get it wrong?
A tenant may sue in the county where the landlord lives or where the landlord's designated agent for service lives, for the money, interest while it was wrongly held, attorney fees and filing costs. A landlord who owns more than ten units or uses a management agent can be liable for three times the amount withheld plus attorney fees, unless the withholding was a mistake that happened despite efforts to avoid it.
Example a made-up owner with 14 units wrongly keeps $600 of a $1,800 deposit and cannot show a procedure that guards against mistakes. Exposure is $1,800 (three times $600) plus the tenant's attorney fees, against $600 had the money gone back on time.
How DoorKeeping handles it
Every property in DoorKeeping has its own books and bank account, so the deposits for one building are separate from the next, and each tenant's deposit shows on its own line. Signed leases and the move-out list you sign can be stored as the property's documents. Deposits stay in your own bank account: DoorKeeping never holds your money and sends a payment only when you approve it. It gives no legal advice.
Sources
Questions
- What is the maximum security deposit in Georgia?
- Two months' rent, according to the Georgia Department of Community Affairs handbook.
- How many days does a Georgia landlord have to return a deposit?
- Thirty days after the lease ends or the tenant leaves, whichever is last, for every landlord regardless of the number of units.
- Does a Georgia landlord have to put deposits in escrow?
- If the landlord owns more than ten rental units (counting a spouse's and children's) or uses a management agent, deposits go in an escrow account for deposits only or are backed by a bond with the superior court clerk.
- What is the penalty for wrongfully withholding a Georgia deposit?
- Three times the amount withheld plus attorney fees for landlords with more than ten units or an agent, unless the withholding was a mistake despite efforts to avoid it.