Georgia Security Deposit Law: New Two-Month Cap and 30-Day Return

Under O.C.G.A. § 44-7-30.1, effective July 1, 2024, a landlord "shall not demand or receive a security deposit" exceeding the equivalent of two months' rent for leases entered into or renewed on or after that date; before HB 404 there was no cap. O.C.G.A. § 44-7-33 requires a move-in list of existing defects, signed by both parties, and a move-out inspection and damage list. Under O.C.G.A. § 44-7-34, within 30 days after obtaining possession the landlord must return the deposit or deliver a written statement itemizing the exact reasons for any retention. Deductions are limited to unpaid rent and damage beyond ordinary wear and tear. Natural-person landlords owning 10 or fewer units, with no management company, are partly exempt under § 44-7-36.

Under O.C.G.A. § 44-7-35, a landlord who in bad faith retains a deposit is liable for three times the amount wrongfully withheld plus reasonable attorney's fees. Failing to give the required lists and statements on time forfeits the landlord's right to withhold any portion of the deposit or sue for damages.