Georgia landlords who understand Georgia security deposit law often avoid making questionable deductions, improperly storing funds, or returning deposits beyond state-mandated deadlines.
In this guide, you’ll learn everything property owners need to know regarding these regulations, including maximum deposit amounts, storage rules, interest requirements, legal deduction reasons, return timelines, dispute steps, and more.
Statutes Regulating Georgia Security Deposits
Georgia’s security deposit rules appear in Sections 44.7.30 through 44.7.37 of the Georgia Code, which outline how landlords collect, store, deduct, and return deposits.
Maximum Security Deposit Amounts Under Georgia Law
Georgia law does not cap the amount a landlord may collect for a security deposit. Property owners can choose any reasonable figure, regardless of lease type, contract length, or other factors. Many landlords set the deposit based on monthly rent or anticipated risk based on tenant screening results.
Georgia law also does not create exceptions that limit how much a landlord may charge. State rules govern this issue entirely, and no special provisions adjust the allowable amount for specific property types or rental situations.
Security Deposit Storage Regulations
Georgia law requires landlords with more than 10 rental units or those who use a property manager to place security deposits in a separate escrow account at a state or federally regulated financial institution, or secure them with a surety bond. Landlords who choose the escrow option must notify tenants in writing about where they hold the deposit.
For example, a landlord cannot keep a tenant’s security deposit in a personal account that mixes deposit funds with personal or operating money.
Security Deposit Interest in Georgia
Georgia law does not require landlords to place security deposits in interest-bearing accounts. Property owners may use any storage method allowed under state rules, and they do not need to pay interest to tenants.
Making Security Deposit Deductions
Security deposit deductions give landlords the resources they need to keep a rental property in strong condition. Tenants sometimes leave damage beyond normal wear and tear, and landlords rely on available funds to repair it and restore the unit to a safe, functional state. Proper deductions also help protect long-term property value.
When Landlords Can Deduct
Georgia landlords may draw from a tenant’s security deposit for these reasons:
- Damage beyond normal wear and tear that necessitates repair
- Unpaid rent owed under the tenant’s signed lease agreement
- Utility charges that were the tenant’s responsibility during occupancy
- Replacement of missing items listed on the move-in inspection report
- Cleaning costs needed to address excessive filth beyond ordinary use
When Landlords Can’t Deduct
Georgia landlords may not draw from a tenant’s security deposit for these reasons:
- Normal wear and tear that results from regular, expected use
- Damage already noted on the move-in inspection report
- Routine cleaning tasks handled as part of standard turnover work
- Property improvements or upgrades that increase overall value
- Charges unsupported by documentation showing an actual financial loss
Necessary Documentation to Accompany Deductions
Georgia landlords must give tenants an itemized list of all deductions taken from the security deposit, along with the charge for each item. Although landlords must provide this written documentation, Georgia law does not require them to attach receipts, invoices, or other documents when they deliver the itemization.
What to Do When Deductions are Greater Than the Deposit
Sometimes a tenant leaves damage that costs more to fix than the security deposit covers. When this occurs, Georgia landlords can bill the former tenant for the remaining balance and give them a fair chance to pay. Georgia law requires landlords to send the itemized deduction list within 30 days, which also supports any request for additional payment.
If the tenant refuses to pay the remaining balance, landlords may pursue the claim through Georgia’s magistrate court (also known as ‘small claims court’).
Returning Security Deposits to Tenants
Georgia law outlines how landlords must return any remaining portion of a tenant’s security deposit after completing all eligible deductions.
Required Timeline for Return
Georgia landlords must return the remaining deposit within 30 days after the tenant vacates the property and the tenancy ends. The 30-day window begins once the landlord regains possession of the rental. Landlords must also provide a written itemized list of deductions within the same 30-day period.
Method for Return
Georgia law requires landlords to send the refund and any itemized deductions to the tenant’s last known address. Most landlords issue refunds by check, but state rules permit any reliable payment method that ensures tenants receive both the funds and the required documentation.
Penalties for Late Return
Georgia landlords who miss the 30-day deadline or withhold funds improperly face strict penalties. A landlord acting in bad faith may owe the tenant up to 3 times the amount wrongfully withheld, along with reasonable attorney fees. These penalties encourage accurate deductions and timely returns.
Security Deposit Disputes
Tenants who disagree with how a landlord handles their security deposit have the right to raise a dispute. They may request clarification, review the itemized deductions, and present their own records. If the issue persists, they can move forward with negotiation, mediation, or a formal legal claim.
As a landlord, prepare for potential disputes by using move-in and move-out checklist tools, staying current with accounting and bookkeeping, and adding clear terms to your lease agreement. Thorough documentation, basic knowledge of Georgia’s security deposit laws, and attention to deadlines will help do things by the book.
Using Condition Reports to Document Damage
Security deposits in Georgia become much easier to manage when landlords use clear move-in and move-out condition reports. Detailed condition reports capture a unit’s condition at both stages, which helps landlords track changes, address disagreements, and handle deductions with confidence.
Landlords can also use property management software to create digital reports with photos and videos directly from a smartphone. By documenting a property’s condition before move-in and after move-out, landlords set clear expectations and make security deposit deductions far more straightforward.
Sign up for a free TurboTenant account to simplify documentation and keep every inspection organized.
FAQs: Georgia Security Deposit Law
Can a landlord deduct painting from a security deposit in Georgia?
A Georgia landlord may deduct painting costs only when a tenant creates damage beyond normal wear and tear. Routine repainting that occurs through regular use does not qualify, but significant scuffs, stains, or unauthorized colors can justify a deductible repair.
Are nail holes considered normal wear and tear in Georgia?
In Georgia, small nail holes from everyday picture hanging typically count as normal wear and tear and do not justify a deduction. Larger holes, wall anchors, or damage requiring patching or repainting may qualify as tenant-caused issues, allowing a landlord to deduct repair costs.
Who has to pay for carpet cleaning in Georgia, the landlord or the tenant?
A Georgia landlord cannot charge a tenant for standard carpet cleaning tied to normal wear and tear. When a tenant leaves excessive dirt, stains, or damage beyond ordinary wear and tear, the landlord may deduct the cost of cleaning or repair from the security deposit.
What happens if a landlord doesn’t return a security deposit within 30 days in Georgia?
If a Georgia landlord fails to return the deposit within 30 days or improperly withholds funds, the landlord may face penalties. A landlord who acts in bad faith may owe the tenant up to 3 times the amount wrongfully withheld, plus reasonable attorney fees.
