Overview
Georgia security deposit laws are governed by O.C.G.A. Title 44, Chapter 7, Article 2 (Sections 44-7-30 through 44-7-37). The 2024 "Safe at Home Act" introduced significant changes, including a new maximum deposit limit effective July 1, 2024. Georgia requires escrow accounts for larger landlords and mandatory move-in inspections. Using a security deposit management software helps property managers stay compliant with these evolving requirements.
Maximum Security Deposit
As of July 1, 2024, the maximum security deposit in Georgia is two months' rent (O.C.G.A. § 44-7-30.1). This applies to leases entered into or renewed on or after this date.
- Pet deposits are allowed but must be included within the two-month maximum
- Service animal deposits cannot be charged (disability discrimination)
Atlanta: The maximum deposit is 1.5 months' rent under local ordinance.
Return Timeline
Landlords must return the security deposit within 30 days after the tenant vacates and surrenders possession (O.C.G.A. § 44-7-34).
The return must include: (Florida has comparable rules—see Florida security deposit laws.)
- The remaining deposit balance
- An itemized statement of any deductions
- Sent via first-class mail to the tenant's last known address
Interest & Storage Requirements
Georgia does not require interest payments on security deposits.
Escrow Requirements (O.C.G.A. § 44-7-31)
- Deposits must be held in an escrow account at a federally insured financial institution
- Must be separate from the landlord's personal funds
- Landlords with 10+ rental units must maintain a dedicated escrow account
- Landlords must provide written notice of where the deposit is held, including institution contact information
Move-In Inspection Requirement
Before collecting a deposit, landlords must provide a written list of existing damages to the unit. This is a critical requirement:
- Tenant has the right to inspect and note additional damages
- Tenant should sign the inspection report
- Failure to provide this list may forfeit the landlord's right to withhold any deposit for damages at move-out
Allowable Deductions
Landlords may deduct for:
- Unpaid rent
- Late fees specified in the lease
- Damage beyond normal wear and tear
Deductions cannot exceed actual damages, and normal wear and tear is not deductible.
Penalties for Non-Compliance
Georgia imposes significant penalties for violations:
- Escrow/inspection failures: May forfeit the right to retain any portion of the deposit
- Bad faith retention: Tenant may recover up to three times the amount wrongfully withheld
- Attorney's fees: May be awarded to the prevailing tenant
Common Compliance Questions
What counts as "normal wear and tear"?
Normal wear and tear includes minor scuffs on walls, slightly worn carpet in high-traffic areas, small nail holes from hanging pictures, and faded paint from sunlight. It does not include large holes in walls, stained or burned carpet, broken fixtures, or damage from pets. When in doubt, document the condition at move-in with dated photos.
How should I document the unit's condition?
Complete a detailed move-in checklist with the tenant, noting existing damage, appliance conditions, and overall cleanliness. Take timestamped photos or video of every room. At move-out, repeat the process. This documentation protects both parties and makes deduction decisions defensible if disputed. Request a demo to see how Passive simplifies inspection documentation.
Can I deduct for unpaid utility bills?
Only if your lease specifically allows it and the utilities are in your name. If utilities are in the tenant's name, contact the utility company directly—they have their own collection processes. Never make unauthorized deductions, even for amounts you believe the tenant owes.