Security deposits in Georgia are regulated by Georgia Code § 44-7-30 to § 44-7-37. Certain municipalities may have local laws that supplement state regulations. To ensure full compliance, verify the regulations applicable in your area.

Georgia: KEY POINTS AT A GLANCE

Deposit Cap: 2x Monthly Rent

Holding Requirements: Yes

Interest Required: No

Return Window: 30 days

COLLECTION & HOLDING REQUIREMENTS

Deposit Cap: Security deposits are limited to two months’ rent.

Holding Requirements: Landlords/property managers must either (1) keep a tenant’s security deposit in an escrow account that is regulated by the federal government or the State of Georgia, or (2) post a surety bond with the clerk of the superior court in the county in which the rental property is located. If held in an escrow account, the security deposit must not be commingled with the landlord/property manager’s personal funds. 

Information Provided to Tenant: Georgia state law requires landlords/property managers to inform each tenant of the location of the account in which the security deposit is held.

Interest on Deposits: Georgia state law does not currently require landlords/property managers to pay tenants interest on security deposits. 

RETURN

Timeline: The landlord/property manager must either (1) return the full security deposit or (2) provide the tenant with a written statement of deductions, with the portion of the security deposit being returned within 30 days of a tenant vacating the property. Payment and any written statement of deductions must be mailed to the tenant’s last known address. If payment and the written statement are returned to the landlord/property manager and the landlord/property manager is unable to locate the tenant for 90 days, the security deposit becomes the property of the landlord.

Documentation of Deductions: Within 30 days of the tenant’s vacancy, the landlord/property manager shall provide the tenant with a written statement of deductions that identifies the exact reason for each deduction and provides a comprehensive list of damages.

Permissible Deductions: Landlords/property managers may deduct the following from a security deposit:

• Unpaid rent or utilities
• Late fees for unpaid rent
• Unpaid pet fees
• Damages beyond normal wear and tear, provided the landlord/property manager attempts to mitigate the damages
• Cleaning fees or repair work contracted for by the tenant
• Damages due to the tenant’s abandonment of the property

‍Penalties: Failure to return the security deposit or provide the written statement of deductions as required may result in the landlord/property manager being liable for up to three times the portion of the security deposit that is wrongfully withheld, plus attorney’s fees and court costs if the tenant wins in a lawsuit.

SALE OF THE RENTAL PROPERTY

Georgia state law does not provide specific regulations governing how security deposits must be handled when a rental property is sold.