VERY HIGH RISK

Georgia

Security deposit laws

Georgia security deposit laws are detailed under the Georgia Landlord-Tenant Act (see also Landlord-Tenant Handbook). These laws provide clear guidelines on how landlords must handle security deposits, ensuring both landlords and tenants are aware of their rights and responsibilities under Georgia law. Please note that rules and regulations may vary by municipality.

Collecting & Holding

Security Deposit Amount

No landlord shall demand or receive a security deposit in an amount that exceeds the equivalent of two months’ rent.

Pet deposits and advance rent deposits that are refundable under the lease are considered part of a security deposit. Application fees or deposits to hold an apartment until the lease is signed are not considered security deposits and usually are not refundable.

Options for Holding

Residential landlords must either (1) keep tenant security deposits in separate escrow accounts and inform each tenant of the location of the tenant’s escrow account or (2) obtain a surety bond.

Notification Requirements

Under Georgia security deposit law, landlords must inform each tenant of the location of the tenant’s escrow account.

Payment of Interest Earned

Georgia law does not require landlords to pay interest on security deposits. Landlords are not obligated to place the deposit in an interest-bearing account or to pass any interest earned on to the tenant.

Returning

Timeline for Returning

Landlords must return the security deposit within 30 days after the tenant vacates the property. If deductions are made, landlords must provide an itemized list of these deductions along with the remaining balance.

Claims Process

If deductions are made, landlords must provide an itemized list of these deductions along with the remaining balance.

If a tenant believes that their security deposit has been wrongfully withheld or if there are disputes about deductions, they can file a claim in small claims court. Tenants may seek the return of the deposit, any damages, and potentially legal fees if the landlord is found to have acted improperly.

Permissible Deductions

Georgia landlords cannot keep the security deposit to cover normal wear and tear that occurs as a result of the tenant using the property for its intended purpose. “Normal wear and tear” means the expected slight damages that happen over time from you and your family or guests’ ordinary use of the unit.

The landlord may keep part of the security deposit for:

  • Damage caused to the premises by the tenant, members of the tenant’s household, pets, or guests, that is done on purpose, by accident, or due to careless acts
  • Unpaid rent or late charges
  • Unpaid pet fees
  • Unpaid utilities that were your responsibility under the lease
  • Damage to the landlord caused by early termination

Penalties

If the landlord refuses to refund the security deposit, you may try to get the security deposit back by suing in the county court where the landlord resides or where his designated agent for service resides. You may also sue for interest on the amount while it was wrongfully withheld, attorney fees, and the cost of filing the lawsuit. You can only recover amounts held by the landlord for damages that you disagreed with and noted on the move-out inspection list.

A landlord who owns more than ten units or uses a management agent can be liable for three times the amount that was withheld plus attorney fees, unless the withholding was a mistake that occurred despite the landlord making efforts to avoid a mistake.

Special Circumstances

Military Service: Tenants called to active military service have additional protections under federal law, including provisions related to security deposits.

Lease Termination Due to Health and Safety Violations: If a tenant terminates the lease due to serious health or safety issues, they may be entitled to a full refund of the security deposit.

Foreclosure: If a property is foreclosed upon, the new owner may be responsible for returning the security deposit to the tenant.

DISCLAIMER: Security deposit laws may vary by county or municipality. The information provided by Build Whale, Inc. is for
general informational purposes only and should not be construed as legal advice. It is not a substitute for consultation with a
qualified attorney. While we strive to provide accurate and up-to-date information, Build Whale, Inc. makes no guarantees or
warranties regarding the accuracy, completeness, or reliability of the information presented.

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