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State of Georgia Security Deposit Law

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44-7-30.

As used in this article, the term:

(1) "Residential rental agreement" means a contract, lease, or
license agreement for the rental or use of real property as a
dwelling place.

(2) "Security deposit" means money or any other form of security
given after July 1, 1976, by a tenant to a landlord which shall be
held by the landlord on behalf of a tenant by virtue of a
residential rental agreement and shall include, but not be limited
to, damage deposits, advance rent deposits, and pet deposits. The
term "security deposit" does not include earnest money or pet fees
which are not to be returned to the tenant under the terms of the
residential rental agreement.


44-7-31.

Except as provided in Code Section 44-7-32, whenever a security
deposit is held by a landlord or his agent on behalf of a tenant, such
security deposit shall be deposited in an escrow account established
only for that purpose in any bank or lending institution subject to
regulation by this state or any agency of the United States
government. The security deposit shall be held in trust for the tenant
by the landlord or his agent except as provided in Code Section
44-7-34. Tenants shall be informed in writing of the location and
account number of the escrow account required by this Code section.


44-7-32.

(a) As an alternative to the requirement that security deposits be
placed in escrow as provided in Code Section 44-7-31, the landlord may
post and maintain an effective surety bond with the clerk of the
superior court in the county in which the dwelling unit is located.
The amount of the bond shall be the total amount of the security
deposits which the landlord holds on behalf of the tenants or
$50,000.00, whichever is less. The bond shall be executed by the
landlord as principal and a surety company authorized and licensed to
do business in this state as surety. The bond shall be conditioned
upon the faithful compliance of the landlord with Code Section 44-7-34
and the return of the security deposits in the event of the bankruptcy
of the landlord or foreclosure of the premises and shall run to the
benefit of any tenant injured by the landlord's violation of Code
Section 44-7-34.

(b) The surety may withdraw from the bond by giving 30 days' written
notice by registered or certified mail to the clerk of the superior
court in the county in which the principal's dwelling unit is located,
provided that such withdrawal shall not release the surety from any
liability existing under the bond at the time of the effective date of
the withdrawal.

(c) The clerk of the superior court shall receive a fee of $5.00 for
filing and recording the surety bond and shall also receive a fee of
$5.00 for canceling the surety bond. The clerk of the superior court
shall not be held personally liable should the surety bond prove to be
invalid.


44-7-33.

(a) Prior to tendering a security deposit, the tenant shall be
presented with a comprehensive list of any existing damage to the
premises, which list shall be for the tenant's permanent retention.
The tenant shall have the right to inspect the premises to ascertain
the accuracy of the list prior to taking occupancy. The landlord and
the tenant shall sign the list and this shall be conclusive evidence
of the accuracy of the list but shall not be conclusive as to latent
defects. If the tenant refuses to sign the list, the tenant shall
state specifically in writing the items on the list to which he
dissents and shall sign such statement of dissent.

(b) Within three business days after the date of the termination of
occupancy, the landlord or his agent shall inspect the premises and
compile a comprehensive list of any damage done to the premises which
is the basis for any charge against the security deposit and the
estimated dollar value of such damage. The tenant shall have the right
to inspect the premises within five business days after the
termination of the occupancy in order to ascertain the accuracy of the
list. The landlord and the tenant shall sign the list, and this shall
be conclusive evidence of the accuracy of the list. If the tenant
refuses to sign the list, he shall state specifically in writing the
items on the list to which he dissents and shall sign such statement
of dissent. If the tenant terminates occupancy without notifying the
landlord, the landlord may make a final inspection within a reasonable
time after discovering the termination of occupancy.

(c) A tenant who disputes the accuracy of the final damage list given
pursuant to subsection (b) of this Code section may bring an action in
any court of competent jurisdiction in this state to recover the
portion of the security deposit which the tenant believes to be
wrongfully withheld for damages to the premises. The tenant's claims
shall be limited to those items to which the tenant specifically
dissented in accordance with this Code section. If the tenant fails to
sign a list or to dissent specifically in accordance with this Code
section, the tenant shall not be entitled to recover the security
deposit or any other damages under Code Section 44-7-35, provided that
the lists required under this Code section contain written notice of
the tenant's duty to sign or to dissent to the list.


44-7-34.

(a) Except as otherwise provided in this article, within one month
after the termination of the residential lease or the surrender and
acceptance of the premises, whichever occurs last, a landlord shall
return to the tenant the full security deposit which was deposited
with the landlord by the tenant. No security deposit shall be retained
to cover ordinary wear and tear which occurred as a result of the use
of the premises for the purposes for which the premises were intended,
provided that there was no negligence, carelessness, accident, or
abuse of the premises by the tenant or members of his household or
their invitees or guests. In the event that actual cause exists for
retaining any portion of the security deposit, the landlord shall
provide the tenant with a written statement listing the exact reasons
for the retention thereof. If the reason for retention is based on
damages to the premises, such damages shall be listed as provided in
Code Section 44-7-33. When the statement is delivered, it shall be
accompanied by a payment of the difference between any sum deposited
and the amount retained. The landlord shall be deemed to have complied
with this Code section by mailing the statement and any payment
required to the last known address of the tenant via first class mail.
If the letter containing the payment is returned to the landlord
undelivered and if the landlord is unable to locate the tenant after
reasonable effort, the payment shall become the property of the
landlord 90 days after the date the payment was mailed. Nothing in
this Code section shall preclude the landlord from retaining the
security deposit for nonpayment of rent or of fees for late payment,
for abandonment of the premises, for nonpayment of utility charges,
for repair work or cleaning contracted for by the tenant with third
parties, for unpaid pet fees, or for actual damages caused by the
tenant's breach, provided the landlord attempts to mitigate the actual
damages.

(b) In any court action in which there is a determination that neither
the landlord nor the tenant is entitled to all or a portion of a
security deposit under this article, the judge or the jury, as the
case may be, shall determine what would be an equitable disposition of
the security deposit; and the judge shall order the security deposit
paid in accordance with such disposition.


44-7-35.

(a) A landlord shall not be entitled to retain any portion of a
security deposit if the security deposit was not deposited in an
escrow account in accordance with Code Section 44-7-31 or a surety
bond was not posted in accordance with Code Section 44-7-32 and if the
initial and final damage lists required by Code Section 44-7-33 are
not made and provided to the tenant.

(b) The failure of a landlord to provide each of the written
statements within the time periods specified in Code Sections 44-7-33
and 44-7-34 shall work a forfeiture of all his rights to withhold any
portion of the security deposit or to bring an action against the
tenant for damages to the premises.

(c) Any landlord who fails to return any part of a security deposit
which is required to be returned to a tenant pursuant to this article
shall be liable to the tenant in the amount of three times the sum
improperly withheld plus reasonable attorney's fees; provided,
however, that the landlord shall be liable only for the sum
erroneously withheld if the landlord shows by the preponderance of the
evidence that the withholding was not intentional and resulted from a
bona fide error which occurred in spite of the existence of procedures
reasonably designed to avoid such errors.


44-7-36.

Code Sections 44-7-31, 44-7-32, 44-7-33, and 44-7-35 shall not apply
to rental units which are owned by a natural person if such natural
person, his or her spouse, and his or her minor children collectively
own ten or fewer rental units; provided, however, that this exemption
does not apply to units for which management, including rent
collection, is performed by third persons, natural or otherwise, for a
fee.


44-7-37.

Notwithstanding any other provision of this chapter, if a person is on
active duty with the United States military and enters into a
residential lease of property for occupancy by that person or that
person's immediate family and subsequently receives permanent change
of station orders or temporary duty orders for a period in excess of
three months, any liability of the person for rent under the lease may
not exceed:

  (1) Thirty days' rent after written notice and proof of the
  assignment are given to the landlord; and

  (2) The cost of repairing damage to the premises caused by an act or
  omission of the tenant.

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