Georgia changed its security deposit law in 2024, and Atlanta renters should know the new limit before they sign. Atlanta is a majority renter city. The Census Bureau’s QuickFacts puts the owner occupied housing rate at 46.4 percent for 2020 to 2024, meaning about 54 percent of occupied homes are rented, with a median gross rent of $1,711 a month and a median household income of $85,652 (U.S. Census Bureau QuickFacts, Atlanta city, Georgia).
Georgia’s rules also include a signed list of existing damage before you move in, and a defined inspection process when you move out. Used properly, those lists decide most deposit disputes before they start. This guide explains every step under Georgia’s Code.
Homzora is a housing research publisher, not a law firm. This article explains the law in plain English and is not legal advice for your situation.
Quick answers
- Maximum deposit: two months’ rent, for leases entered into or renewed on or after July 1, 2024 (O.C.G.A. § 44-7-30.1).
- Refund deadline: 30 days after the landlord obtains possession (O.C.G.A. § 44-7-34).
- Wear and tear: not deductible unless caused by negligence, carelessness, accident, or abuse (O.C.G.A. § 44-7-34).
- Penalty: three times the amount improperly withheld plus reasonable attorney’s fees (O.C.G.A. § 44-7-35).
The two month cap
Georgia Code Section 44-7-30.1 states that no landlord shall demand or receive a security deposit that exceeds the equivalent of two months’ rent. The section was enacted by House Bill 404 in 2024, took effect July 1, 2024, and applies to residential leases entered into or renewed on or after that date (O.C.G.A. § 44-7-30.1). At Atlanta’s median gross rent of $1,711, the cap would be $3,422 for a unit at that rent.
The move in list of existing damage
Before you pay the deposit, the landlord must give you a comprehensive list of any existing damage to the premises. You may inspect the unit to check the list before you move in, and both of you sign it. Your signature is conclusive evidence that the list is accurate, except as to latent defects. If you disagree with an item, you must say so in writing and sign that statement (O.C.G.A. § 44-7-33).
This is the most important document in any Georgia deposit dispute. Walk the unit carefully, add anything the landlord missed, and photograph every item on the list before you sign.
Moving out: the inspection and final list
Within three business days after the lease ends and you vacate, the landlord must inspect the premises and compile a list of damage done to the premises that supports any charge against the deposit, with estimated dollar values. If you ask, you may inspect the premises and the list within five business days after the lease ends and you vacate. If you are present for the landlord’s inspection, you both sign the list; if you disagree, you must specifically dispute items in writing and sign the dissent (O.C.G.A. § 44-7-33).
Georgia’s Code limits later claims to items a tenant specifically disputed, and a tenant who signs the final list without dissenting, after written notice of the duty to sign or dissent, may lose the right to recover under Section 44-7-35 (O.C.G.A. § 44-7-33). Read the final list carefully before you sign it.
The 30 day refund rule
The landlord must return the full deposit within 30 days after obtaining possession of the premises, unless it has a valid reason to keep part of it. Any amount kept requires a written statement listing the exact reasons, and if the reason is damage, the statement must include the comprehensive damage list. The statement must be accompanied by payment of the difference. Mailing the statement and payment by first class mail to your last known address satisfies the landlord’s duty (O.C.G.A. § 44-7-34).
What may be deducted
A landlord may keep deposit money for unpaid rent or late fees, abandonment, unpaid utilities, third party repair or cleaning contracted by the tenant, unpaid pet fees, or actual damages from the tenant’s breach, and it must try to mitigate actual damages (O.C.G.A. § 44-7-34).
What may not be deducted
The landlord may not keep any of the deposit for ordinary wear and tear from normal use, unless the tenant, household members, invitees, or guests were negligent, careless, caused an accident, or abused the premises (O.C.G.A. § 44-7-34).
If the landlord cannot find you
If the payment letter comes back undelivered and the landlord cannot locate you after reasonable effort, the money becomes the landlord’s property 90 days after it was mailed (O.C.G.A. § 44-7-34). Keep your forwarding address current.
Penalties for noncompliance
A landlord who fails to provide the required lists and written statements within the time limits forfeits the right to withhold any part of the deposit and to sue the tenant for damage to the premises. A landlord who fails to return a required amount is liable for three times the amount improperly withheld plus reasonable attorney’s fees, unless it proves the withholding was unintentional and resulted from a bona fide error despite reasonable procedures, in which case liability is limited to the amount withheld (O.C.G.A. § 44-7-35).
Small landlords are partly exempt
The escrow, list, inspection, and penalty sections do not apply to rental units owned by an individual whose household collectively owns 10 or fewer rental units, unless a third party manages the units for a fee (O.C.G.A. § 44-7-36). The two month cap and the 30 day refund rule are in different sections, so ask your landlord early whether it relies on this exemption.
A worked example
Suppose you rent at Atlanta’s median gross rent of $1,711 from a large management company and paid a one month deposit. You move out on June 30 and the company takes possession that day. It inspects on July 2, finds a stained carpet it values at $400, and mails a statement with the damage list and a $1,311 refund on July 20. If the carpet stain was on the signed move in list, the deduction is improper, and if the company kept the money knowingly, it could owe three times $400, or $1,200, plus attorney’s fees.
Build your evidence file
Landlord and tenant disputes are usually decided by documents. Keep these together from the day you sign:
- The signed lease, every addendum, and every renewal.
- Receipts or bank records for the deposit and each rent payment.
- Dated photos and video of every room at move in and move out.
- Copies of every repair request and the landlord’s replies.
- Every notice you send or receive, with proof of delivery.
Keep copies somewhere other than your phone, such as an email to yourself, so they survive a lost device.
Before you sign your next lease
- Ask who owns and who manages the property, and get contact details in writing.
- Read the clauses on early termination, subletting, renewal, late fees, and notice before you sign.
- Confirm the deposit amount, where it will be held, and how it will be returned.
- Walk through the unit, note existing damage in writing, and keep a signed copy.
- Ask how much notice the landlord gives before a rent increase or a non renewal.
Help in Atlanta
The Atlanta Legal Aid Society provides free civil legal help to eligible residents (Atlanta Legal Aid Society). Homzora’s free Homzora Georgia Deposit Law 2026 dataset summarizes each Georgia deposit provision.
Where your deposit must be held
A landlord who holds a security deposit must place it in an escrow account used only for that purpose, at a bank or lending institution regulated by Georgia or the federal government, and must tell the tenant in writing where the account is located. The deposit is held in trust for the tenant, except as the refund section provides. A landlord may instead post a surety bond under the next section of the Code (O.C.G.A. § 44-7-31).
A sample demand letter
Date: 2026. To: [landlord]. Re: Security deposit for [address, unit]. You obtained possession on 2026. Under O.C.G.A. Section 44-7-34, my deposit, or a written statement of the exact reasons for any amount kept with payment of the balance, was due within 30 days. [I have received neither.] [I dispute these charges, which were listed on the signed move in damage list or reflect ordinary wear and tear: (list).] Under Section 44-7-35, a landlord who fails to return a required amount may be liable for three times the amount improperly withheld plus attorney’s fees. Please send [amount] to [address] by 2026. Sincerely, [name].
Key terms
- Comprehensive list of existing damage: the signed move in list required before the deposit is paid (O.C.G.A. § 44-7-33).
- Final damage list: the list the landlord compiles within three business days after you vacate.
- Ordinary wear and tear: deterioration from normal use that the landlord may not deduct (O.C.G.A. § 44-7-34).
- Bona fide error: the narrow defense that can limit a landlord’s liability to the amount withheld (O.C.G.A. § 44-7-35).
Frequently asked questions
My lease started before July 2024 with a three month deposit. Is that allowed?
The two month cap applies to leases entered into or renewed on or after July 1, 2024 (O.C.G.A. § 44-7-30.1). At renewal, the cap applies.
Do I have to sign the move out list?
If you attend the inspection, you sign the list or specifically dispute items in writing and sign the dissent (O.C.G.A. § 44-7-33).
Can my landlord charge for repainting after three years?
Not for ordinary wear and tear from normal use (O.C.G.A. § 44-7-34).
Sources
- U.S. Census Bureau QuickFacts, Atlanta city, Georgia
- O.C.G.A. § 44-7-30.1
- O.C.G.A. § 44-7-34
- O.C.G.A. § 44-7-35
- O.C.G.A. § 44-7-33
- O.C.G.A. § 44-7-36
- Atlanta Legal Aid Society
- Homzora Georgia Deposit Law 2026 dataset
- O.C.G.A. § 44-7-31
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