Georgia security deposit and move-in inspection rules

How much can the deposit be?

A landlord may not demand or receive a security deposit larger than two months' rent. This applies to residential leases entered into or renewed on or after July 1, 2024 (HB 404, Section 6). The small-landlord exemption in § 44-7-36 does not list § 44-7-30.1, so the cap applies to every landlord.

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

Where the deposit must be kept

The deposit must be held in trust in an escrow account used only for deposits. The account must be at any bank or lending institution regulated by Georgia or by a U.S. government agency; the statute does not require a Georgia bank. The tenant must be told in writing where the account is. Alternatively, under § 44-7-32, the landlord may post a surety bond with the superior court clerk of the county. The bond equals the total deposits held or $50,000, whichever is less.

“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.”

Move-in inspection and photos

Before the tenant pays a deposit, the landlord must give the tenant a comprehensive list of existing damage for the tenant to keep. The tenant may inspect the unit before moving in to check the list. Both parties sign it. A tenant who disagrees must write down and sign the specific items they dispute. The statute prescribes no exact wording. However, under § 44-7-33(c), a tenant who signs the list or fails to dissent loses certain claims only if the lists contain 'written notice of the tenant's duty to sign or to dissent to the list'.

“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.”

Move-out inspection

The clock starts when the lease ends and the tenant vacates, or when the unit is surrendered and accepted, whichever comes first. Within 3 business days, the landlord must inspect and list any damage being charged against the deposit, with an estimated dollar value. On request, the tenant may inspect the unit and the list within 5 business days. If present, the tenant signs or writes a signed dissent. If the tenant leaves without notice, the landlord must make the list within a reasonable time after discovering the vacancy (§ 44-7-33(b)(2)). A tenant's court claim is limited to the items they dissented to (§ 44-7-33(c)).

“Within three business days after the termination of the residential lease and vacation of the premises or the surrender and acceptance of the premises, whichever occurs first, the landlord or his or her agent shall inspect the premises and compile a comprehensive list of any damage done to the premises”

When the deposit must be returned

The landlord must return the full deposit within 30 days after obtaining possession. If any part is kept, the landlord must give a written statement of the exact reasons, including the damage list when the reason is damage. The statement must come with payment of the balance.

“Within 30 days after obtaining possession of the premises as provided in subsection (b) of Code Section 44-7-33, a landlord shall return to the tenant the full security deposit which was deposited with the landlord by the tenant.”

What can and cannot be deducted

Ordinary wear and tear cannot be deducted unless it involved negligence, carelessness, accident or abuse by the tenant, the household or guests. The landlord may keep money for: unpaid rent or late fees; abandonment; unpaid utilities; repair or cleaning work the tenant contracted with third parties; unpaid pet fees; and actual damages from the tenant's breach, provided the landlord tries to mitigate.

“No security deposit shall be retained to cover ordinary wear and tear which occurred as a result of the use of the premises for the purposes for which the premises were intended, provided that there was no negligence, carelessness, accident, or abuse of the premises by the tenant or members of his or her household or their invitees or guests.”

How the deposit is returned

The landlord complies by mailing the statement and any payment by first-class mail to the tenant's last known address. If the payment comes back undelivered and the landlord cannot locate the tenant after reasonable effort, the money becomes the landlord's property 90 days after it was mailed. The statute says 90 days, not 60.

“The landlord shall be deemed to have complied with this Code section by mailing such statement and any payment required to the last known address of the tenant via first-class mail.”

Interest on the deposit

No state statute. None of §§ 44-7-30 through 44-7-36 requires paying interest on a deposit, and § 44-7-31 requires an escrow account but says nothing about interest.

Penalties for keeping a deposit wrongly

A landlord who fails to return deposit money that is due owes three times the amount improperly withheld, plus reasonable attorney's fees. If the landlord proves an unintentional bona fide error despite reasonable procedures, liability is limited to the amount withheld (§ 44-7-35(c)). Missing the § 44-7-34 deadlines for the lists and statements forfeits the right to withhold any part of the deposit or to sue for damage (§ 44-7-35(b)). Section 44-7-35(a) also bars retention when there is no escrow or bond, no move-in list, and no move-out list.

“Any landlord who fails to return any part of a security deposit which is required to be returned to a tenant pursuant to this article shall be liable to the tenant in the amount of three times the sum improperly withheld plus reasonable attorney's fees”

Small landlords

The exemption covers units owned by a natural person whose household (the owner, spouse and minor children together) owns 10 or fewer rental units. Those units are exempt from the escrow/bond rule (§§ 44-7-31, -32), the move-in and move-out lists (§ 44-7-33) and the penalty section (§ 44-7-35). The exemption does not apply where a third party manages the units, including collecting rent, for a fee. The 30-day return rule (§ 44-7-34) and the two-month cap (§ 44-7-30.1) are not in the exemption.

“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”