Overview
Georgia’s security deposit laws are governed by O.C.G.A. § 44-7-30 through § 44-7-37. These laws establish clear rules for how deposits must be handled, including where they are stored, how and when they must be returned, and what deductions are allowed.
While Georgia offers landlords flexibility, the law also includes strict requirements to protect tenants—especially regarding move-in inspections and return timelines. Landlords who fail to follow these rules may forfeit their right to retain any portion of the deposit.
This guide covers:
How much landlords can charge
Where deposits must be stored
Inspection and documentation requirements
Deposit return deadlines and penalties
Related Statute: O.C.G.A. § 44-7-30 – § 44-7-37
1. Security Deposit Limits & Storage Requirements
Maximum deposit: Georgia law does not impose a cap on the amount a landlord can charge for a security deposit. The amount is typically determined by the rental agreement.
Storage requirements: Landlords who own more than ten rental units, or who use a third-party management company, must place security deposits in a separate escrow account located in a Georgia bank or savings institution.
Surety bond alternative: Instead of an escrow account, landlords may post a surety bond with the county’s superior court in the amount of the total security deposits held or $50,000, whichever is less.
Tenant notification: Landlords must notify the tenant in writing of the location of the escrow account or that a bond has been posted.
Law Reference: O.C.G.A. § 44-7-31
2. Move-In Inspection & Documentation
Written inspection report: Before collecting a security deposit, landlords must provide a list of existing damages to the rental unit. The tenant has the right to inspect the premises and add any discrepancies to the report.
Tenant signature: Tenants should sign the move-in inspection report to confirm agreement or note additional damages.
Failure to provide a report: If the landlord fails to provide a written list of damages at move-in, they may forfeit the right to withhold any portion of the security deposit for damages at move-out.
Law Reference: O.C.G.A. § 44-7-33
3. Security Deposit Returns & Allowable Deductions
Return deadline: Security deposits must be returned within one month (30 days) after termination of the lease and delivery of possession by the tenant.
Permissible deductions: Landlords may deduct for unpaid rent, late fees, and damage beyond normal wear and tear. The deduction must be reasonable and documented.
Itemized statement required: Landlords must provide an itemized list of damages and deductions, along with any remaining deposit balance, within the 30-day period.
Tenant dispute: If the tenant disagrees with the deductions, they may challenge the claims in court.
Law Reference: O.C.G.A. § 44-7-34
4. Penalties for Mishandling Security Deposits
Forfeiture of claims: Landlords who fail to comply with escrow or move-in inspection requirements may lose the right to retain any portion of the deposit.
Bad faith retention: If a landlord is found to have intentionally kept a deposit in bad faith, the tenant may recover up to three times the amount wrongfully withheld, plus attorney’s fees.
Law Reference: O.C.G.A. § 44-7-35
Key Takeaways
Georgia does not limit the amount landlords can charge for a security deposit.
Deposits must be held in an escrow account or covered by a surety bond, and tenants must be notified of where the funds are held.
Move-in inspection reports are required and must be shared with the tenant before collecting a deposit.
Deposits must be returned within 30 days, and any deductions must be itemized.
Failure to follow the law can result in the forfeiture of the deposit or treble damages for bad faith retention.
By following Georgia’s security deposit laws, landlords can avoid penalties, and tenants can better protect their rights and money.
Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. Readers should not act or refrain from acting based on any information included in this post without seeking legal counsel or other professional guidance specific to their situation. The information is provided “as is” without any representations or warranties of any kind, express or implied, including but not limited to the accuracy, completeness, or reliability of the content. Laws and regulations may change and vary by jurisdiction.
