We get a lot of questions from both tenants and owners, wondering how security deposits are dispersed. We are not attorneys and we aren’t giving legal advice, but we do want to talk to you about security deposit refunds. In Georgia, a deposit is the tenant’s money, and the landlord cannot access it during the tenancy. It can only be used by the landlord after the tenant has moved out.
Landlord Move Out Process
At the end of a tenancy, we have a 30-day window to perform the move out inspection, report the results to the tenant, and then dispose of all the money by either returning it to the tenant or the landlord. The tenant signs and performs a move-in inspection during the lease signing. This is the starting point for the move-out inspection. It helps us document what preexisting conditions were in place when the tenant moved in. We give the property to the tenant in a clean state, free from trash and debris. We expect it back in the same condition. However, tenants don’t always leave themselves enough time to move out appropriately. Because of that, we sometimes must withhold parts of the deposit. Our lease and Georgia laws require that tenants return the property without any damage other than normal wear and tear. Dirt is not wear and tear.
Common Security Deposit Deductions
Three of the most common deductions are for lease violations, not damages. These would be not returning the property in a clean condition, not freshly maintaining the lawn, and not removing all the trash from the property, including leaving the trash at the curb, completely full. Each of these items could be $200 or more a piece to cure. Damages such as pet destruction or holes in walls and doors, broken blinds, and damaged appliances are charged back to tenant for the cost of repairs or replacements. That money is deducted from the security deposit. If the cost to cure is more than the deposit amount, federal law allows the tenants 30 days to pay that debt. If they don’t pay, it’s forwarded to a collection agency, and it goes on their credit report.
Provide Assistance to Tenants
We have policies in place to advise tenants of their obligations. We actually do want to return all the deposit to the tenant. So, we provide a cleaning guide and a timeline of how to prepare for the move-out during those last 30 days of the lease. We do
not retain any deposit fees ourselves. If anything is withheld, that money is going to pay for damages. What’s normal wear and tear? We’ll cover that next. If you have any questions about Marietta property management, please contact us at McCreary Realty Management.