Recent data shows that Georgia has 8.9% of purchase loans intended for investment properties. This is above average for the United States.
Georgia can be a superb market for real estate investors, but before you become a Georgia landlord, you must know the basics of security deposits. Each state varies in its security deposit laws.
Applicants wanting to rent your property expect that you will follow the rules when they sign a lease with you. Abiding by state regulations will prevent fines and costly court cases.
Before you begin marketing to renters, read this article. Here are the full details!
What Is a Security Deposit?
It is a sum of money that a tenant gives a landlord to hold in trust. This is proof for the landlord that the tenant intends to move in. Also, it serves as evidence that the tenant wishes to care for the property.
How to Collect Security Deposits
The ways to collect security deposits can vary by landlord and by state. You want to discuss the security deposit amount in Georgia when you examine the rent price. It must be collected separately from rent.
There is no limit for a security deposit according to Georgia law.
Security Deposit Laws in Georgia
Georgia security deposits must be returned within one month. If it is not returned, the landlord must give a reason.
For landlords who own over ten rental units, each unit requires an inspection. The landlord should then provide the tenant with a list of damages. These itemized lists must be provided within three business days when a tenant moves out.
After this, the landlord can reinspect the tenant's unit.
Facts About Security Deposits
Once you collect the security deposit, you must understand what you can deduct. Otherwise, the total amount must be returned.
Here are five facts about what you can deduct:
- You can deduct unpaid rent
- You can deduct cleaning charges
- You cannot deduct wear and tear
- You can deduct damage because of the tenant's abuse or neglect
- You can charge an additional pet deposit unless the animals are emotional support animals or service dogs
When you deduct for property damage, it must be after you collect the keys from the tenant and have the time to inspect the property. Also, the property's condition should be reported before the renter moves in. There should be documentation that speaks to pre-existing damage.
Remember these essential facts, and when you have questions, ask a professional property management company to help.
PMI Marietta: Property Management You Can Trust
When you have questions about security deposits, the experts at PMI Marietta have answers. Serving the Atlanta metro area, we understand Georgia state law.
While it can be lucrative to invest in real estate, it is not without challenges, and that is where we come in. Save time and money with our professional property managers. Contact PMI Marietta today.