As a landlord, allowing strangers to occupy your rental unit is a huge risk. Security deposits help reduce these risks a little.
In Georgia, landlords may charge two months' rent to cover property damage caused by their tenants or unpaid rent in the event of an eviction. Security deposits aren't income; they're funds that the landlord must return to their tenants at the end of the lease agreement.
There are also several legalities associated with these deposits. Read on to learn more about landlord best practices concerning security deposits in Savannah, Georgia.
Georgia Laws Concerning Security Deposits
There are several legal requirements when it comes to handling tenant deposits in Georgia. The landlord must return the deposit within 30 days of the lease expiring and keep it separate from their other income until that time.
Before accepting a deposit from the tenant, the landlord must provide the tenant with a list of any existing damages. Both parties must verify this and sign it off.
Upon receipt of a deposit, the landlord must place it in an escrow account at a federally-regulated or state bank.
Alternatively, the landlord can post a surety bond at the superior court in their county. The amount of the bond must equal the full deposit amount, up to a maximum of $50,000.
Landlords must give the tenant a receipt for their security deposit and provide them with the details of where it's being kept.
Legitimate Security Deposit Deductions
If you intend to make any deductions from the tenant's security deposit, you must provide them with an itemized list of these items. They must receive this within 30 days of vacating the unit.
Landlords may make deductions from the security deposit for damage to the unit that exceeds normal wear and tear. They must also carry out move-in and move-out property inspections to prove that the tenant caused these issues.
It's best to take photographs of any damages and receive detailed quotes for necessary repairs before you make any deductions. Tenants are entitled to inspect the property and dispute any deductions they disagree with.
In the case of an eviction, landlords may also deduct any unpaid rent from the security deposit.
In some cases, tenants might make repairs to the property themselves and deduct the cost of them from the rent. The landlord cannot claim these amounts back via the security deposit.
Penalties for Security Deposit Violations
Landlords who don't safeguard the security deposit correctly may forfeit their right to make deductions. Landlords who deduct unlawful amounts from a security deposit could face litigation from the tenant.
Enjoy Expert Tips and Help at Your Fingertips
The best way to ensure you do the right thing regarding complicated topics like security deposits is to work with a property management firm. These experts can help you navigate all the legalities involved with tenants.
Savannah Property Management/Pam T Property Management oversees over 300 properties in the Savannah area and has over 30 years of real estate experience. We offer a full range of rental property management services to help ensure your success as a landlord.
Browse our blog for more property management tips and discover the ultimate solutions for effective Savannah, GA, rental management.