Deposit limits, return deadlines, allowable deductions, and penalties under Georgia law. Updated April 2026.
Georgia does not impose a statutory maximum on security deposit amounts. Under O.C.G.A. § 44-7-30, landlords may charge any amount as a security deposit. Market practice in Georgia typically places deposits at one to two months' rent, though some landlords charge more for higher-risk tenancies or luxury properties.
The absence of a cap gives Georgia landlords flexibility in risk management. However, excessively high deposits can reduce the applicant pool, particularly in affordable markets like Augusta and Columbus. In the Atlanta metro, where rents are higher, deposits of one month's rent are most common. Landlords should specify the deposit amount clearly in the lease agreement.
Prepaid rent and other advance payments are treated separately from the security deposit. Landlords should clearly distinguish between the deposit, last month's rent, pet deposits, and any non-refundable fees in the lease. Any payment designated as a "deposit" is presumed refundable under Georgia law and is subject to the escrow and return requirements of the statute.
Georgia has specific escrow requirements for security deposits that depend on the number of units the landlord owns. Under O.C.G.A. § 44-7-31, landlords who own more than 10 rental units (including units owned by the landlord's spouse or business entities) must place security deposits in an escrow account in a state or federally regulated financial institution or post a surety bond. The landlord must provide the tenant with written notice of the escrow account or bond within 30 days of receiving the deposit.
Landlords with 10 or fewer units are exempt from the escrow and bonding requirements. However, all landlords regardless of portfolio size must comply with the move-in inspection, return timeline, and itemization requirements. Even exempt landlords should maintain clear records of deposits collected and consider holding them separately for accounting purposes.
Georgia does not require landlords to pay interest on security deposits. There is no obligation to earn interest on the escrow account or distribute interest to the tenant. The primary compliance focus is on the escrow/bonding requirement for larger landlords and the strict move-in inspection and return procedures that apply to all landlords.
Under O.C.G.A. § 44-7-34, the landlord must return the security deposit within 30 days after the tenant vacates and delivers possession of the premises. If the landlord withholds any portion, a written itemized statement of damages must be provided within the 30-day period, along with any remaining balance. The statement must be sent to the tenant's last known address.
The 30-day clock begins when the tenant vacates and surrenders possession. If the tenant abandons the property, the landlord should document the date of abandonment and begin the 30-day count from that date. Landlords should send the refund and statement by certified mail or another delivery method that provides proof of mailing.
Georgia's move-in inspection requirement under O.C.G.A. § 44-7-33 is critical to the return process. The landlord must conduct a move-in inspection within 3 business days before the tenant occupies the unit, documenting all existing damage. Without this inspection report, the landlord's ability to support deductions at move-out is significantly weakened. The move-out inspection should compare the unit's condition to the move-in report, and any new damage should be documented with photographs and repair estimates.
Under O.C.G.A. § 44-7-34, landlords may deduct from the security deposit for unpaid rent, late fees, unpaid utilities that the tenant was responsible for under the lease, and physical damage to the premises beyond normal wear and tear. All deductions must be itemized in writing and supported by evidence of the actual cost of repair or the amount owed.
Common allowable deductions include unpaid rent, repairs for holes in walls, broken fixtures, stained or burned carpet, damaged appliances, missing items, excessive cleaning, and damage from unauthorized pets. Normal wear and tear—minor nail holes, faded paint, worn carpet in traffic areas, and routine maintenance items—cannot be deducted. Georgia courts expect landlords to distinguish clearly between tenant-caused damage and normal deterioration.
The move-in inspection report under O.C.G.A. § 44-7-33 is the foundation for supporting deductions. Without this report, the landlord has difficulty proving that damage occurred during the tenancy rather than existing beforehand. Landlords should supplement the inspection report with photographs, video, and detailed written descriptions of the property's condition at both move-in and move-out.
Georgia imposes significant penalties for security deposit noncompliance. Under O.C.G.A. § 44-7-35, a landlord who fails to return the security deposit or provide the required itemized statement within 30 days, or who wrongfully withholds any portion of the deposit, is liable to the tenant for three times the amount wrongfully withheld plus reasonable attorney fees.
The treble damages provision is one of the strongest security deposit penalties in the Southeast. It applies when the landlord acts in bad faith—meaning the withholding was intentional and without legal justification. However, if the landlord demonstrates that the retention was the result of a good-faith error, the court may limit damages. The burden is on the landlord to prove good faith.
Additional penalties apply for failure to comply with the escrow requirements. Under O.C.G.A. § 44-7-36, a landlord who is required to hold deposits in escrow but fails to do so forfeits the right to retain any portion of the deposit. This applies to landlords with more than 10 units who do not maintain a proper escrow account or surety bond. Failure to provide the required move-in inspection report under O.C.G.A. § 44-7-33 can also weaken the landlord's ability to support deductions and may be considered as evidence of bad faith.
For Section 8 tenants in Georgia, the security deposit is the tenant's responsibility—the PHA does not pay it. Since Georgia has no statutory cap, landlords may charge any amount. However, the same escrow, inspection, and return requirements apply regardless of the tenant's voucher status.
Landlords must provide the move-in inspection report to Section 8 tenants just as they would for any other tenant. The PHA's HQS inspection provides additional documentation of the unit's condition, which can be useful in deposit disputes. Landlords should apply the same deduction standards to all tenants regardless of voucher status to avoid fair housing issues.
The treble damages penalty under O.C.G.A. § 44-7-35 applies equally to Section 8 tenancies. Landlords should follow the same careful procedures for all tenants: conduct the move-in inspection, document conditions with photographs, hold the deposit in escrow if required, and return the deposit with an itemized statement within 30 days of move-out.
Only if the landlord owns more than 10 rental units. Under O.C.G.A. § 44-7-31, landlords with more than 10 units must place deposits in an escrow account or post a surety bond. Landlords with 10 or fewer units are exempt from this requirement.
Under O.C.G.A. § 44-7-35, the tenant may recover three times the amount wrongfully withheld plus reasonable attorney fees. This treble damages provision is one of the strongest in the Southeast and applies when the landlord acts in bad faith.
Yes. Under O.C.G.A. § 44-7-33, the landlord must provide a comprehensive written list of existing damage within 3 business days before the tenant moves in. Both parties must sign the report. Without it, the landlord's ability to support deposit deductions is significantly weakened.
No. Georgia does not require landlords to pay interest on security deposits or hold them in interest-bearing accounts. The primary compliance requirements are the escrow requirement for larger landlords and the move-in inspection and 30-day return timeline.
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