How to Hold and Return a Security Deposit in Georgia

There is no legal limit in Georgia to the amount you may charge as a security deposit. The standard security deposit amount is equal to one month's rent.

Storing the Deposit

Georgia law states that a security deposit must be held in an escrow account used specifically for that purpose and that you must give your subtenant written notice stating the location of the account. If you fail to follow these instructions, you will lose your right to retain the security deposit at the end of the subtenancy.

Returning the Deposit

You must return your subtenant's security deposit within one month of the end of the sublease. You can use the security deposit to cover any unpaid rent at the end of the sublease or to cover the cost of any damages to the unit that exceed normal wear and tear. Within three business days of the end of the sublease, you must inspect the unit and make a list of any damages for which you plan to withhold funds from the security deposit. Your subtenant then has the right to inspect the unit for themselves. If they agree with the list you provide, you must both sign it. You may return the security deposit, in full or in part, by mailing it to your subtenant's last known address via first class mail. If the letter is returned, and you cannot locate your subtenant after making a reasonable effort, in 90 days you retain the right to keep the security deposit. If you fail to follow these instructions, your subtenant has the right to take you to court for three times the amount improperly withheld plus attorney's fees.