| Quick Facts | Answer |
| Maximum / Limit | No Limit |
| Receipt Requirement | None |
| Inventory Requirement | Required |
| Interest Requirement | None |
To learn about laws on security deposit returns in Georgia, click here.
Some cities and counties may have regulations which are more restrictive than those presented here. Always check local laws.
Maximum Security Deposit Allowed in Georgia
As of July 1, 2024, the maximum security deposit allowed in Georgia is two months’ rent. Before the effective date of Georgia’s security deposit law, there is no maximum limit.
Can Landlords Charge an Additional Pet Deposit in Georgia?
Yes, landlords can collect an additional pet deposit in Georgia, except for service dogs and emotional support animals.
In Georgia, the definition of “security deposit” includes other refundable deposits, like a pet deposit. If a landlord collects a pet deposit, it must be treated according to the same rules as a security deposit.
How Much Rent Can a Landlord Collect Upfront in Georgia?
There is no limit on the amount of rent that can be collected upfront in Georgia. Many states have a limit on the amount of rent that can be collected at once, but Georgia does not.
Security Deposit Collections in Georgia
When landlords collect a security deposit in Georgia, they must provide the tenant with a comprehensive list of existing damage to the rental unit and give them the option to complete an inspection. They must also do one of the following:
- Place the security deposit in an escrow account and notify the tenant in writing
- Post a surety bond
Rental units are exempt from these responsibilities if all of the following are true:
- The landlord is an individual (i.e. not a company or business entity)
- The total number of rental units the landlord owns collectively with their immediate family is ten or fewer rental units
- The landlord does not pay a fee to use a management service to rent out units, including rent collection services
In Atlanta, there are additional responsibilities if the following are true:
- The landlord leases eleven or more rental units
- The security deposit is more than 60% of one month’s rent
- The deposit is not collected 60 days or earlier before the lease term to secure the rental unit
In this case, the Atlanta landlord must provide these two options to the tenant in writing in lieu of paying the security deposit in one upfront payment:
- Pay the security deposit in three equal installments
- Purchase security deposit insurance
Do Landlords Have To Provide a Receipt for the Security Deposit in Georgia?
While landlords in Georgia must inform the tenants in writing if the security deposit is placed in an escrow account, an additional receipt of the deposit is not required to be provided.
What Obligations Do Landlords Have To Establish the Condition at Move-in in Georgia?
In Georgia, landlords must provide the tenant with a comprehensive list of the existing damage to the rental unit (if any). The tenant must have the opportunity to inspect the unit and either:
- Sign with the landlord to agree with the list
- Submit a signed statement of disagreement with all or a portion of the list
However, there are some exemptions to this responsibility when the landlord is an individual and they, together with their immediate family, own ten or fewer rental units.
Security Deposit Holdings in Georgia
Landlords in Georgia must hold security deposits in one of two places: an escrow account or by posting a surety bond.
Option 1: Escrow Account. The landlord may place the security deposit in a state or federally-regulated account. The account must only be used for security deposits.
Option 2: Surety Bond. The landlord may post a surety bond issued by a company authorized to do business in Georgia and posted with the clerk of the Superior Court in the county where the property is located. The amount of the bond must be the total amount of all security deposits held by the landlord or $50,000, whichever is less.
Exemption: The landlord is an individual (not a corporation, partnership, etc.) and they own ten or fewer rental units, together with their immediate family. In that case, they are exempt from this rule unless they hire a company to manage the units and/or collect rent.
Are Tenants Entitled to Interest on Their Security Deposit in Georgia?
Landlords in Georgia do not owe interest on security deposits. If the landlord holds the security deposit in an account that gains interest, they may choose whether or not to credit the tenant.
How Are Security Deposits Accounted for in Georgia?
Security deposits are not considered taxable income when they are collected.
What Happens to a Security Deposit When the Property is Sold in Georgia?
There is no state statute for the treatment of security deposits after the sale of a property. However, the security deposit belongs to the tenant and must be returned to them at the end of the lease term if no deductions can be made.
Sources
- 1 Ga. Code § 44-7-30.1
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No landlord shall demand or receive a security deposit in an amount that exceeds the equivalent of two months’ rent.
Source Link - 2 Ga. Code § 44-7-30
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As used in this article, the term:
(1) “Nonrefundable fee” means any money or other consideration paid or given by a tenant to a landlord under the terms of a residential rental agreement which the parties agreed would not be refunded.
(2) “Residential rental agreement” means a contract, lease, or license agreement for the rental or use of real property as a dwelling place.
(3) “Security deposit” means money or any other form of security given after July 1, 1976, by a tenant to a landlord which shall be held by the landlord on behalf of a tenant by virtue of a residential rental agreement and shall include, but not be limited to, damage deposits, advance rent deposits, and pet deposits. Such term shall not include nonrefundable fees, or money or other consideration which are not to be returned to the tenant under the terms of the residential rental agreement or which were to be applied toward the payment of rent or reimbursement of services or utilities provided to the tenant.
Source Link - 3 Ga. Code § 44-7-33(a)
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Prior to tendering a security deposit, the tenant shall be presented with a comprehensive list of any existing damage to the premises which shall be for the tenant’s permanent retention. The tenant shall have the right to inspect the premises to ascertain the accuracy of such list prior to taking occupancy. The landlord and the tenant shall sign the list, and this shall be conclusive evidence of the accuracy of the list but shall not be conclusive as to latent defects. If the tenant refuses to sign the list, the tenant shall state specifically in writing the items on such list to which he or she dissents and shall sign such statement of dissent.
Source Link - 4 Ga. Code § 44-7-31
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Except as provided in Code Section 44-7-32, whenever a security deposit is held by a landlord or such landlord’s agent on behalf of a tenant, such security deposit shall be deposited in an escrow account established only for that purpose in any bank or lending institution subject to regulation by this state or any agency of the United States government. The security deposit shall be held in trust for the tenant by the landlord or such landlord’s agent except as provided in Code Section 44-7-34. Tenants shall be informed in writing of the location of the escrow account required by this Code section.
Source Link - 5 Ga. Code § 44-7-32
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(a) As an alternative to the requirement that security deposits be placed in escrow as provided in Code Section 44-7-31, the landlord may post and maintain an effective surety bond with the clerk of the superior court in the county in which the dwelling unit is located. The amount of the bond shall be the total amount of the security deposits which the landlord holds on behalf of the tenants or $50,000.00, whichever is less. The bond shall be executed by the landlord as principal and a surety company authorized and licensed to do business in this state as surety. The bond shall be conditioned upon the faithful compliance of the landlord with Code Section 44-7-34 and the return of the security deposits in the event of the bankruptcy of the landlord or foreclosure of the premises and shall run to the benefit of any tenant injured by the landlord’s violation of Code Section 44-7-34.
(b) The surety may withdraw from the bond by giving 30 days’ written notice by registered or certified mail or statutory overnight delivery to the clerk of the superior court in the county in which the principal’s dwelling unit is located, provided that such withdrawal shall not release the surety from any liability existing under the bond at the time of the effective date of the withdrawal.
(c) The clerk of the superior court shall receive a fee of $5.00 for filing and recording the surety bond and shall also receive a fee of $5.00 for canceling the surety bond. The clerk of the superior court shall not be held personally liable should the surety bond prove to be invalid.
Source Link - 6 Ga. Code § 44-7-36
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Code Sections 44-7-31, 44-7-32, 44-7-33, and 44-7-35 shall not apply to rental units which are owned by a natural person if such natural person, his or her spouse, and his or her minor children collectively own ten or fewer rental units; provided, however, that this exemption does not apply to units for which management, including rent collection, is performed by third persons, natural or otherwise, for a fee.
Source Link - 7 Atlanta Code of Ord. § 94-152(a) & (b)
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(a)Upon a tenant’s request, all landlords who own and/or control more than ten rental units and require a security deposit more than 60 percent of the monthly rental rate charged for the subject rental unit shall offer to accept one of the two following options in lieu of the required security deposit:
(1)Rental security insurance that satisfies the following criteria:
a. The insurance provider is an approved carrier licensed by, and in good standing with, the Department of Insurance of the State of Georgia;
b. The insurance provider, policy, and coverage amount must be submitted to and approved by the landlord as an acceptable option in lieu of the required security deposit;
c. The coverage is effective upon the payment of the first premium and remains effective for the entire lease term;
d. The insurance must permit the payment of premiums on a monthly basis unless the tenant selects or agrees to a different payment schedule;
e. The coverage provided per claim is no less than the amount the landlord requires for security deposits; and
f. A tenant who chooses this option in lieu of security deposit shall not be required to provide additional security or insurance coverage per claim in an amount greater than the amount required for security deposits.
(2) Payment of the security deposit over a series of no less than three equal monthly installment payments, which installments shall be due on the same day as the monthly rent payment and which may be paid together with the monthly rent payment in a single transaction, absent separate agreement by the landlord and tenant; or
(b) Prior to entering into a rental agreement which requires a security deposit more than 60 percent of the monthly rental rate charged for the subject rental unit, a landlord shall provide the tenant written notice of the available alternatives.
Source Link
