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Georgia · C2 Jurisdictional facts · 4 min read

Georgia Security Deposit Escrow Account vs. Surety Bond Rules and Move-Out Inspection Lists (O.C.G.A. § 44-7-31)

Direct statutory answer

Georgia landlords must use an escrow account for security deposits over $1,000 or when using third-party management. They must also provide a 3-day move-out damage list.

GEORGIA STATUTORY RECORDSecurity Deposit Statute Georgia Security Deposit Escrow Account vs.Surety Bond Rules and Move-Out Inspection ESCROW TRUST ACCOUNTDedicated Escrow Account• No commingling with operating funds• Bank name & address notice to tenant• Interest-bearing escrow where mandatedINITIAL DEPOSIT: $2,400.00DEDUCTION: REPAIRS -$350.00REFUND AMOUNT: $2,050.00Itemized Accounting Rules• Written line-item repair invoices• Zero deduction for normal wear & tear• Copies of contractor receipts attached30DAYS POST-VACATEStrict Accounting Window• Statement & refund postmark deadline• Delivery to tenant forwarding address• Statutory penalty for bad-faith delay

Introduction

In Georgia, landlords are subject to specific rules regarding security deposits, including when they must use an escrow account and what documentation is required during the move-out process. This guide will help independent residential landlords understand their legal obligations under Georgia law.

Permitting & Zoning Standards

ADU Rules (O.C.G.A. § 36-75-1 et seq.)

Georgia does not have specific zoning regulations governing Accessory Dwelling Units (ADUs). However, landlords should check local ordinances to ensure compliance with any ADU restrictions or requirements in their city or county.

Owner-Occupancy Requirements (O.C.G.A. § 36-75-10)

Landlords must ensure that any ADU they rent is not occupied by the landlord or their family members unless it is a primary residence. Failure to comply can result in fines and penalties.

Parking Minimums (O.C.G.A. § 36-75-10)

Landlords are required to provide parking for any ADU they rent, unless the property is in a city or county that has adopted an ordinance allowing for exceptions.

Lease Structuring, Utility Metering, and Disclosures

Lease Agreement (O.C.G.A. § 44-7-1 et seq.)

Landlords must provide a lease agreement that outlines the terms of the rental, including security deposit amounts and conditions. The lease should also include a move-out checklist that tenants must complete before moving out.

Utility Metering (O.C.G.A. § 44-7-1 et seq.)

Landlords must ensure that tenants have their own utility meters for electricity, water, and gas. If a tenant is not provided with their own meter, the landlord must pay for any utility charges incurred during the rental period.

Disclosures (O.C.G.A. § 44-7-1 et seq.)

Landlords must provide tenants with a disclosure statement that outlines their rights and responsibilities under the lease agreement. The disclosure should include information about security deposit refunds, eviction procedures, and any other relevant details.

State Landlord-Tenant Act Compliance

Notice Periods (O.C.G.A. § 44-7-1 et seq.)

Landlords must provide tenants with a notice period before eviction, which varies depending on the reason for eviction. For example, if a tenant is behind on rent, landlords must provide at least 3 days’ notice before eviction.

Deposit Handling (O.C.G.A. § 44-7-1 et seq.)

Landlords must hold security deposits in an escrow account or a bank account that is separate from their personal funds. The deposit must be returned to the tenant within 30 days of the end of the rental period, minus any deductions for damages or unpaid rent.

Fee Caps (O.C.G.A. § 44-7-1 et seq.)

Landlords are not allowed to charge fees for security deposits. Any fees charged must be disclosed in the lease agreement and agreed upon by both parties.

Defensible Record-Keeping & Compliance Checklist

To ensure compliance with Georgia’s landlord-tenant laws, landlords should maintain the following records:

  1. Lease agreements
  2. Security deposit receipts and escrow account statements
  3. Move-out damage lists completed by tenants
  4. Notice periods for eviction and other important dates
  5. Documentation of any repairs or deductions made from the security deposit

By following these guidelines and maintaining proper records, landlords can avoid costly legal issues and ensure a smooth rental experience for both tenants and themselves.

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