Georgia security deposit law

You may not demand or receive a security deposit larger than two months' rent. A security deposit includes damage deposits, advance rent deposits and pet deposits, so a pet deposit counts toward the two months.

O.C.G.A. § 44-7-30.1

• The two-month limit came from a 2024 Act that applies to residential leases entered into or renewed on or after July 1, 2024. HB 404 (2024), section 6
• Nonrefundable fees, and money that is not to be returned or that is to be applied to rent or to pay for services or utilities, are not a security deposit. O.C.G.A. § 44-7-30(1), (3)
• Section 44-7-36 excludes only sections 44-7-31, 32, 33 and 35 for units owned by a natural person whose units, together with a spouse's and minor children's units, total ten or fewer. Paid third-party management, including rent collection, removes that exemption. The exemption does not list the two-month cap in 44-7-30.1 or the return provision in 44-7-34. O.C.G.A. § 44-7-36
• For a property inside Atlanta, section 94-152(a) applies on a tenant request when the landlord owns or controls more than ten units and requires a deposit greater than 60 percent of monthly rent. It requires offering one of two alternatives: qualifying rental security insurance or at least three equal monthly deposit installments. Insurance must meet the carrier, approval, coverage and payment conditions; the tenant cannot simply choose an unapproved policy. Installments ordinarily fall on the rent due date and may be paid with rent unless separately agreed. Atlanta Code § 94-152(a)
• Atlanta subsection (b) separately calls for written notice of available alternatives before entering a lease requiring a deposit above 60 percent of monthly rent. Check subsection (c)'s exception for a deposit securing availability more than 60 days before the rental period begins. These city provisions do not replace the state cap or refund rules. Atlanta Code § 94-152(b)-(d)

Within 30 days after you obtain possession of the home, return the full deposit. If you keep any part, send the tenant a written statement of the exact reasons, including the move-out damage list when the reason is damage, together with the balance. Mailing the statement and payment by first-class mail to the tenant's last known address complies. No part may be kept for ordinary wear and tear.

O.C.G.A. § 44-7-34(a)

• The 30 days run from your obtaining possession as the move-out inspection section describes: after the lease ends and the tenant vacates, or after surrender and acceptance, whichever comes first. No forwarding address is needed to start the clock. O.C.G.A. § 44-7-33(b) O.C.G.A. § 44-7-34(a)
• You may keep deposit money for unpaid rent or late fees, abandonment of the home, unpaid utility charges, repair or cleaning the tenant contracted for with third parties, unpaid pet fees, or actual damages from the tenant's breach, provided you attempt to mitigate those damages. O.C.G.A. § 44-7-34(a)
• If the mailed payment comes back undelivered and you cannot locate the tenant after reasonable effort, the payment becomes yours 90 days after the date it was mailed. O.C.G.A. § 44-7-34(a)
• Failing to provide the lists and written statements within these time periods forfeits your right to keep any part of the deposit or to sue the tenant for damage to the home. O.C.G.A. § 44-7-35(b)
• A landlord who fails to return deposit money that must be returned owes three times the amount improperly withheld plus reasonable attorney's fees, or only the amount withheld if the landlord proves the withholding was an unintentional bona fide error despite procedures reasonably designed to avoid such errors. O.C.G.A. § 44-7-35(c)
• The statute lists three failures, joined by 'and', under which a landlord is not entitled to keep any part of the deposit: no escrow account or surety bond, no move-in damage list, and no final damage list. O.C.G.A. § 44-7-35(a)
• Section 44-7-36's qualifying small-owner exemption includes the inspection/list and remedy sections 44-7-33 and 44-7-35; it does not list the return section 44-7-34. Check the ownership, family-unit total and paid-management conditions before applying an inspection forfeiture or treble-damages rule. O.C.G.A. § 44-7-36
• Compare dated condition records, the resident's specific objections, the actual charge and the required notice before withholding money. A routine upgrade, new replacement invoice or automatic painting charge does not by itself establish a permitted deduction. Preserve the issued itemization, supporting records, mailing and returned-payment evidence. If ownership changes, reconcile the holder and transfer or refund records; the deposit must not disappear from the tenancy account. O.C.G.A. § 44-7-33 O.C.G.A. § 44-7-34

Where the statutory exemption does not apply, place a deposit held by you or your agent in an escrow account used only for deposits at a bank or lending institution regulated by Georgia or a federal agency, and tell the tenant in writing where it is. Section 44-7-32 provides a surety-bond alternative. The qualifying small-owner exemption in section 44-7-36 removes the named escrow/bond requirements; check paid third-party management and the family-unit total. No deposit section reviewed imposes an interest-payment rule.

O.C.G.A. § 44-7-31 O.C.G.A. § 44-7-32 O.C.G.A. § 44-7-36

• A deposit not placed in escrow (or covered by a surety bond) is one of the failures listed in the section on losing the right to keep the deposit. O.C.G.A. § 44-7-35(a)(1) See Returning the deposit on the Georgia page
• The bond alternative requires an effective bond maintained with the superior-court clerk in the property's county. Its amount is the total deposits held or $50,000, whichever is less, with the landlord as principal and an authorized, licensed surety. It secures statutory return duties and return on bankruptcy or foreclosure. A surety withdrawal requires 30 days' written notice under the specified methods and does not release existing liability. Check separate professional-broker trust-account obligations before choosing an alternative. O.C.G.A. § 44-7-32

For units covered by section 44-7-33, give the tenant a comprehensive existing-damage list before the deposit is tendered, for permanent retention, and allow inspection before occupancy. Both parties sign; the list is conclusive as to accuracy except latent defects. A tenant refusing to sign must specifically identify disputed items in a signed written dissent. Check section 44-7-36's qualifying small-owner exemption and its paid-management exception before treating this procedure as universal.

O.C.G.A. § 44-7-33(a) O.C.G.A. § 44-7-36

• Within three business days after the lease ends and the tenant vacates, or after surrender and acceptance, whichever comes first, inspect the home and compile a comprehensive list of any damage you will charge against the deposit, with its estimated dollar value. On request the tenant may inspect the home and the list within five business days after that event and your inspection. O.C.G.A. § 44-7-33(b)(1)
• If the tenant leaves without telling you, inspect and compile the list within a reasonable time after discovering the home has been vacated, and sign it. O.C.G.A. § 44-7-33(b)(2)
• A tenant who was present for your move-out inspection and signs your final list, or fails to dissent specifically in writing, cannot recover the deposit or other damages over it, but only if your lists contain written notice of the tenant's duty to sign or to dissent. A tenant who was not present and did not ask for a copy may still dispute the charges. O.C.G.A. § 44-7-33(c)
• A tenant who disputes the final list may sue for the part of the deposit wrongly withheld, limited to the items the tenant specifically dissented from. O.C.G.A. § 44-7-33(c)