Understanding the Georgia Rental Lease Agreement
What is a Georgia Rental Lease Agreement?
Essentially, a Georgia Rental Lease is a leasehold agreement between two parties (landlord and tenant). The landlord is referred to as the lessor, which is the party that provides the residential unit, commercial unit or other real property in exchange for rent. The lessee is the tenant who resides in the real property and is responsible for paying the rent to the landlord.
A Georgia Rental Lease agreement generally includes the following:
Purpose of a Rental Lease
A Rental Lease essentially outlines the underlying structure of the rental relationship between the landlord (lessor) and the tenant (lessee) . The lease clearly establishes each party’s rights along with obligations and duties. This eliminates and prevents any confusion or misunderstandings from occurring.
There are generally two types of Rental Leases both of which are classified as fixed term leases and periodic tenders.
Fixed Term Lease:
Periodic Tenders:
In most cases, Rental Leases are considered "unconscionable contracts." What this means is that the agreement generally favors the landlord. This is significant because it enables you to draft particular provisions into the lease. Included in those provisions are the issue of notice before evicting the tenant or increasing the rent.
Key Elements of a Lease Agreement
One of the first sections of a Georgia rental property lease that tends to be standard is the parties’ names and addresses. This part of the lease should always contain the full names of the tenants as well as the landlord. There must also be a full address for the tenants and the landlord, including a zip code. Make sure it includes a phone number, too.
Following that introductory information that identifies all of the parties involved, you will see the property address itself, contact numbers, the start and end date of the lease, and the monthly rental amount. Following that will be details regarding the payment schedule, where the payments are due, how the payments are made, and any late fees if the payment is not received on time.
The next part of the lease agreement is usually details regarding the security deposit. For a standard residential lease, the amount of the security deposit is generally equal to one month rent. If there are animals, then the pet security deposit must be added as well.
Finally, the length of the lease agreement and what happens when it is up are usually laid out in the last part of the document. Depending on which document you are using, it could rise to a year or even longer.
Tenant’s Rights and Responsibilities
Georgia law outlines both the rights and the responsibilities of tenants in a rental agreement. Some of these rights and obligations are covered in the lease agreement itself, while others are subject to state law for all rental agreements. Georgia law requires a rental unit to be habitable, including provisions for maintenance, sanitation, running water, heat, locks and weatherproofing. This is not the same as providing an upper-tier residence, but you do have legal protections against toxic mold and other issues that can affect your health.
A standard rental agreement also covers the responsibility of the tenant to maintain the unit in a reasonable condition, including reporting any notice of defect, damages, or failure of facilities. While the lease should list specific provisions for having maintenance come in and handle repairs and maintenance, a failure to keep the property in a reasonable condition is generally considered a violation of the lease. Your landlord may charge you for both the cost of repairs and the hourly rate for their maintenance team so that they can remove any amount directly from your security deposit at the end of your lease.
Alterations to the property or breach of a written policy or procedure established in a Georgia rental agreement constitute a tenant’s breach of the agreement. However, some common sense provisions allow for basic repairs, hanging cabinets, or other work. In the event that a tenant needs to remove debris or remove it for structural reasons, they would not be in violation of the lease based upon basic usage of the property.
Tenants also maintain a right to privacy. While landlords in Georgia are legally required to provide 24 hours written notice prior to entering the property, this does not constitute a right to be in the unit. It merely entitles them to enter a tenant’s space. There are certain exceptions, including in the event of an emergency. Tenants may not refuse to grant entry to the landlord, although a warning prior to even entering the premises is a good idea.
Landlord’s Responsibilities and Duties
As part of the Georgia Rental Lease Agreement, you must indicate which services the landlord agrees to provide for tenants. Similar to what duties landlords are required to provide tenants in the state of Georgia, in Georgia rental lease agreements, the landlord is responsible for the following items.
The landlord is not permitted to create or maintain a condition on the premises that is dangerously unsanitary, can injure a tenant, can injure a tenant’s property, places a tenant’s property at a high risk of damage, or violates the Georgia Housing Code.
With noncompliance in a rental lease agreement, the landlord has the right to notify the tenant about the nonconformity.
With the receipt of these types of notices, the landlord has 30 days to correct the situation with the rental agreement or otherwise vacate the premises. The landlord must maintain the unit during the lease term, and landlords are also required to provide running water and hot water, the exterior of the home must be a secured structure, exit doors must form a sealed unit, and the utilities must be properly stored to not become a nuisance for public safety.
Security Deposit Regulations
The Georgia Rental Lease Agreement has several provisions concerning security deposits. From the landlord’s perspective, it’s an important tool to protect the investment. But, excessive, unjustified withholding can cause big problems. From the tenant’s perspective, the security deposit is their money and they expect it back if there are no damages or unpaid rent. The Georgia Residential Landlord and Tenant Act governs the handling of such funds in Georgia.
It Is Not a Rent Payment
Even though security deposits are often paid with the first month’s rent. It is important to note that the deposit does not go towards rent. This is often cited in cases where a tenant makes a complaint concerning repairs that were not performed and the landlord refuses the claim because the lease requires a 7 day written notice (for example). In those circumstances, the landlord cannot rely on the non-payment of rent due to failure to perform repairs as a basis for evicting a tenant. The landlord has not suffered a loss of rent because security deposit is not considered rent. These concepts show that the landlord must be extremely careful when administering a security deposit.
Amount of Security Deposit
Georgia law provides that a security deposit shall be a lesser of no more than a) two month’s rent at the rental agreement establishment or b) $2,000.00. The amount is left to the landlord and tenant, unless a local ordinance provides otherwise. The obvious reason for the limitation is to promote rental housing affordability. However, it can work in favor of the landlord as well, particularly in highly competitive rental markets. If a truly low security deposit is required, other factors must be considered by a prospective tenant.
Conditions for Returning 100% of Their Deposit
A landlord must return 100% of the security deposit within 5 days of a tenant’s vacating the premises, if the rental unit was cleaned and no mortgage is unpaid. Per Georgia law, the cleaning of an apartment does not mean that it must be shampooed, painted, wallpapered, or have the carpet replaced . The rental unit should be cleaned to its "condition as of the first day of occupancy, less normal wear and tear. See O.C.G.A. § 44-7-34(d). The key to dispute over a security deposit almost always lies within the context of normal wear and tear. Many tenants will neglect to clean an apartment. However, landlords should avoid a heavy handed approach to evictions based on minor cleaning issues or missed normal wear and tear. This discussion leads to what is required to establish a claim for damages.
All Damages Must Be Reasonable
The reasonable manner rule means that all damages must relate to actual damages and not damage that is part of normal use of the property. A common example is when a door has been scratched. If the door was scratched during normal use, the replacement of the door is forbidden. The guideline for what is reasonable is dependant upon the condition of the unit and its condition to the extent at which it was prior to the tenancy. This provision is designed to discourage a landlord from the excessive costs for damages.
Timelines for Returning Security Deposit
In order to sustain a legitimate security deposit claim, we must also discuss the timelines for providing a refund or accounting. The timing is critical for defending a suit under the Georgia security deposit act. The landlord must have the security deposit returned to the tenant within 1 month from the end of the tenancy, or must give an accounting setting forth the reasons why the security deposit was withheld.
One month is a short time in which to wait to receive payment for damages before you are required to perform the next track eviction as outlined above. Therefore, landlords should take photographs and document any perceived damages while both before and after the tenancy. Georgia law requires that landlords keep a record of all entries upon the premises for at least 1 year after the lease has expired and the tenant has vacated the unit. See O.C.G.A. § 44-7-30.1(a). For returns when the tenants do not object, the landlord should return the check. If the tenant objects, then it is only necessary to provide the records.
Ending a Lease / Eviction Process
A rental lease agreement in Georgia may be terminated based on legal grounds or by the mutual agreement of the landlord and tenant. The following is an outline of the legal grounds for terminating a lease in Georgia along with the notice requirements for landlords and tenants. The notice to terminate a lease can be either written or oral unless otherwise specified in the rental agreement. Georgia law requires a landlord to provide a tenant with notice of failure to pay rent prior to commencing eviction proceedings. Georgia law states that when a rental agreement is for less than one (1) year, except where otherwise agreed, either party may terminate the lease agreement by giving at least 30 days written or oral notice. This 30 day notice period is not required where the lease agreement provides for a shorter termination period or where the lease agreement is on a month to month basis. In the event of a month-to-month tenancy the lease must be terminated before the period begins. If the rental agreement states that the rent is due on the first of the month, then the notice to terminate must be given before the first of that month. If the rental agreement states that weekly rent is to be paid, notice must be given at least 7 days before the period begins. In Georgia, a landlord may terminate a lease if a rent payment has not been received within 5 days of the date that payment is due, unless an earlier payment date is specified in the lease agreement. In order to evict a tenant for non-payment of rent, the landlord must provide the tenant with a written notice stating the amount of rent due. The written notice must also contain a demand for the full rent amount that triggers the expiration date. If the tenant pays the rent in full prior to the written notice date he or she is relieved from penalty or ejectment (eviction) proceedings. If a tenant holds possession of the property after the expiration date of a rental agreement, fails to vacate the premises or if the tenant is otherwise in violation of a rental agreement, the landlord may terminate the lease agreement provided he gives at least 30 days advance written or oral notice. The notice must state the date on which the rental agreement shall terminate. A landlord does not have to provide a tenant with notice to terminate a lease in the event of non-payment of rent. The termination of a rental lease agreement due to default of the lessee may occur at any time. In order to terminate the lease agreement for any other default such as not fixing damage to the property, the lease must give notice to the tenant and allow a reasonable time to remedy the situation. If the tenant fails to fix the situation after notice is provided to him/her, the landlord is entitled to exercise his remedies as provided for in the lease and in the law, including termination of the lease and removing the tenant from the property (eviction). It is important to note that a landlord must never use forceful measures to remove a tenant from the property. Illegal forcible measures are defined as any attempt to eject a tenant without going through proper judicial proceedings. For example, a landlord cannot change the locks on the property to keep the tenant from entering or lock the tenant out of the property. If a landlord engages in illegal forcible measures to remove the tenant from the property, the tenant may recover from the landlord an amount equal to 3 months’ rent plus damages, and a like amount as attorney’s fees in ejectment (eviction) proceedings. Further, any written statement written in the lease or other document that authorizes a carry-over of delinquent rents owing from one rental period into subsequent rental periods is deemed to be void and unenforceable.
Amendments and Additions to a Lease Agreement
Parties can legally revise or modify a Georgia rental lease agreement without altering the entire lease any time during the rental period to accommodate a change in the rental terms. A legal modification to a lease agreement is a written document that reflects additions, deletions, or revisions to existing provisions of the current lease agreement. Any alterations to the terms or conditions of the current lease agreement must be in writing and signed by the landlord and tenant to be legally binding on both parties. For example, a tenant who keeps a pet inside the property, but who discovers the pet agreement intend by all parties will allow for pet ownership, may require a written pet addendum signed by both the landlord and tenant to correct the terms of the lease agreement initially agreed to.
An addendum to a residential rental lease agreement can modify the lease agreement if the modification is within legal boundaries, such as an increase in rent. The rental lease agreement must accommodate the modification. A Georgia rental lease agreement may reflect that at the end of a 12-month rental period, the monthly rent will increase by $50.00 per month for the next 12 months. The increase takes place without a revision or modification to the original agreement. In this example, the monthly increase is legal because the lease spelled out that the increase would occur at the end of the first 12-months of the rental period.
Disputes in Rental Agreements
Georgia’s rental regulations include specific guidelines regarding the resolution of disputes between landlords and tenants. Although most property managers strive to handle any issues with their properties on a day-to-day basis, sometimes outside assistance or mediation is required. You will have choices about how to proceed with any disputes. Here is a brief summary of the what the Georgia Rental Lease Agreement offers as options for dispute resolution:
The Georgia Department of Community Affairs has a listing of third party services available throughout the state of Georgia that offer mediation and arbitration services. The DCA also has a listing of schools that offer mediation and arbitration services and may have mediation programs available on campus . (DCA)
If private mediation services are not successful, the Georgia Department of Community Affairs provides a listing of all applicable mediation and arbitration services as well, located online. However, once again, the presence of the DCA’s listings of available third party arbitration and mediation services does not indicate that the parties are required to use these methods to resolve their dispute. (DCA)
Any dispute between the tenant and the landlord can be handled in a small claims court. If the amount of the dispute is $15,000 or less for money damages, this option is viable for tenants and landlords located throughout Georgia. Small claims courts allow all parties to bring forth evidence and demand damages in a relatively simple legal process.