If you own a rental in metro Atlanta, the security deposit is one of the easiest places to land in legal trouble — and one of the easiest to get right once you know Georgia’s rules. Here’s what every Atlanta landlord should nail down before collecting a dime.

How much can you charge in Georgia?

Georgia sets no statutory cap on security deposits. Most Atlanta landlords charge about one month’s rent, with up to two months common for higher-risk applicants or pets. Just remember a sky-high deposit shrinks your applicant pool — price it against your screening standards, not your worst-case fears.

The escrow rule most landlords miss

This is the big one. If you own more than ten rental units or you use a property manager or leasing agent, Georgia law (O.C.G.A. § 44-7-31) requires you to hold the deposit in a separate escrow account at a regulated bank — not your personal checking — and tell the tenant in writing where it’s held. You can post a surety bond instead, but escrow is simpler. Commingle the deposit with your own money and you can lose the right to keep any of it.

Document the unit — before and after

Before you take the deposit, give the tenant a written list of any existing damage. They have the right to inspect and note anything you missed. When they move out, you have three business days to inspect and prepare a list of new damage. Skip these steps and a tenant can challenge every deduction you try to make.

The 30-day deadline (and the 3x penalty)

Within 30 days of move-out, you must return the full deposit or send an itemized statement of what you kept and why. You can only deduct for actual damage beyond normal wear and tear and unpaid rent — not repainting after a normal tenancy or shampooing ordinary carpet wear. Georgia courts can make a non-compliant landlord repay up to three times the wrongfully withheld amount, plus the tenant’s attorney fees.

Can I keep the deposit for normal wear and tear?

No. Faded paint, minor carpet wear, and small nail holes are normal wear. You can only charge for actual damage — holes in the wall, broken fixtures, pet stains — or unpaid rent.

How fast do I have to return a deposit in Georgia?

Within 30 days of move-out. Miss it and you may forfeit your right to withhold anything, so calendar the deadline the day the tenant hands back the keys.

Handling deposits correctly — escrow, inspections, itemized statements, the 30-day clock — is exactly what trips up DIY landlords. My Way Realty’s property management keeps your deposits in a compliant escrow account and handles every inspection and deadline for you, for half the first month’s rent to place a tenant, then 7% of the monthly rent. Want to see if it pencils out? Get in touch. Still deciding whether to hire out? Read self-manage vs. property manager and our guide to tenant screening in Georgia.

This is general information, not legal advice — for your situation, check with a Georgia real estate attorney.