Understanding Georgia Lease Renewal Laws: What Tenants and Landlords Need to Know

An Overview of Georgia Lease Renewal Laws

For both landlords and tenants, understanding the complexities of lease renewal laws in Georgia is crucial. From the decision to renew to the terms of the renewal period, each step has important legal implications. In Georgia, the law governing lease renewals is not highly restrictive, but the advantages for both parties – including increased rental income for landlords and housing stability for tenants – are substantial. It is important for anyone involved in the negotiation and renewal of commercial or residential lease agreements to be familiar with the relevant Georgia laws.
The requirements for renewal of a lease in Georgia vary according to the terms of the lease itself. Georgia’s landlord-tenant statutes allow for a landlord and tenant to agree on a leasing term that can be as short as a day or as long as thirty years. Lease agreements can be negotiated or drafted at will, provided that the terms do not contravene public policy or the laws of the State of Georgia. However, once a lease contract is executed and the terms are agreed upon, the renewal period described in the contract is legally enforceable.
If the lease agreement includes a clause that automatically renews the lease for a particular period of time, then either party may request termination of the lease in writing at least thirty days prior to the commencement of the renewal period. Even if there is no termination clause, Georgia law affords all individual tenants the right to terminate a lease early by giving written notice at least thirty days in advance . If the landlord then terminates the lease within that time frame, the tenant will not be required to pay rent anymore.
Though there are regulations that allow for lease termination in certain circumstances, Georgia law also allows a landlord to terminate a lease that includes an automatic renewal term if the tenant has abandoned the premises. The law states that any moves by the tenant that make it impossible for the landlord to contact him or her constitutes abandonment. Moving away, allowing mail delivery to lapse or forwarding mail are all acts that demonstrate landlord abandonment. If the landlord discovers evidence of abandonment, he or she may terminate the lease, take possession of the unit and re-rent.
A tenant may also abandon a unit when he or she has neglected to pay rent for a period of time stated in the lease, or if the landlord takes possession of the unit through foreclosure, default by the landlord or if the unit is subject to execution. If the landlord suffers any of these losses, he or she may terminate the lease and re-rent the property if the tenant has not notified him or her of a continuation of the rental agreement.
Whether you are a tenant entering into a new lease agreement or a landlord looking to renew an existing agreement, it is important to understand the laws under which Georgia lease renewal operates. From disclosure requirements to breaking leases and even unified development codes, each state has its own laws that govern the issuance of lease renewals. Speak with an attorney to learn more about specific requirements in Georgia before executing or renewing a lease agreement.

Tenant Rights When Renewing a Lease

When it comes to lease renewals, Georgia law protects tenants in several ways. Depending on the circumstances, a tenant may have a right to renew their lease, maintain the same rental rate during the renewal period or obtain certain benefits if their landlord fails to renew their lease.
Many Georgia leases contain language that provides the tenant with the "right of first refusal." In a nutshell, this means that the tenant has the right to review and sign a renewal of their existing lease at the same rate that they are currently paying. Depending on the terms of the renewal, the tenant might have more or less than 30 days’ notice that their landlord wants to enter into a new lease. If the tenant fails to respond to the renewal within the time frame set out in the lease, the landlord may enter into a lease with another party.
Georgia law limits the amount of rent that a landlord can collect from their tenant. A few specific sin a lease contract could signal that a landlord has breached their contractual duty. If a tenant has paid rent under the specific terms of an existing lease but the landlord attempts to enter into a new lease with a different rental amount, then the tenant may be entitled to get a refund of the difference and have the right to continue paying rent at the old rate without having to worry about eviction.

Landlord Responsibilities in a Lease Renewal Situation

Responsibilities and Obligations of Landlords in Lease Renewals
Like their tenants, a Georgia landlord has certain expectations and obligations they must meet when it comes to the renewal of a lease. For example, Georgia does not have any explicit state laws regarding how a landlord should notify a tenant of an upcoming lease renewal or provide adequate time for them to either accept or deny the renewal of the lease. However, the state does require that all leases have some form of written notice provision that allows both parties to extend or cancel the lease as needed.
For most landlords, their governing lease determines the method of notice. A Georgia judge recently rendered a 2019 decision in Estate of Harrington v. US Bank N.A. that provided clarity for Georgia landlords on how notice provisions are interpreted. According to the case, the courts will interpret any statement regarding notice regarding "any correspondence," "written statement," or "require written notice" to mean that the landlord must otherwise abide by the "reasonable delivery" standard set forth under O.C.G.A. § 9-10-109. This can be served by mail, personal delivery, or electronic transmission but must reach the tenant or other party in a reasonable manner.

Georgia Notice Requirements for Lease Renewal

Georgia law provides specific requirements in how landlords should approach a lease renewal or termination. These requirements can be tied to the terms of your lease. In Apartment Solutions, Inc. v. Jones, the most recent case on the subject, the Georgia Court of Appeals held, "the contractual terms of the lease control not only its renewal but also its termination." It is important for tenants to know that the lease they sign may include an automatic renewal provision. As discussed below, Georgia law requires landlords to inform tenants that their lease will be automatically renewed and of the renewal period. If the landlord fails to notify the tenant of the automatic renewal, the tenant can avoid the renewal.
There are notice periods a landlord must adhere to when renewing or terminating a lease, neither of which can be less than 30 days. Specifically, GEORGIA CODE § 44-7-7 requires landlords to provide a minimum 30-day notice period for the termination or renewal of a month-to-month lease and GEORGIA CODE § 44-7-19 requires a 60-day notice period for leases longer than one year. If the written lease does not provide for a 30 or 60-day notice period, the mandatary time periods under Georgia law apply. Courts have upheld this 30 and 60 day notice while holding that a lease with a 90-day notice of renewal and increasing a lease with no notice provision to 30 and 60 days notice were unenforceability.
Just as the notice requirements are mandatory, they impact landlords’ and tenants’ decisions to renew their lease. A landlord must weigh the cost involved in renewing the lease, including whether they can renegotiate the rate, and thereafter notify the tenant of the renewal. The landlord also must weigh its own circumstances, such as whether they are a current or prospective competing business. If the landlord fails to notify the tenant of the automatic renewal, the tenant can avoid the renewal. Instead of testing if their decision sticks, the reasonable landlord should consider informing the tenant of the automatic renewal of their lease and the renewal period. Otherwise, the landlord risks a long term tenant and increased rent.

Common Lease Renewal Terms and Conditions

Typically, lease renewals contain the specific terms of the coming lease term. These terms often include: While the tenant will have some ideas on what terms may be added or modified, the landlord likely will present a list of potential terms that the tenants can counter, negotiate, and eventually agree to. When implementing these terms to a lease renewal , the parties must be very clear about their expectations to avoid an ambiguous agreement that could provide the basis for a later dispute. Above all else, Georgia law requires that all changes to a contract be in writing and signed by all parties to the agreement. If at any time one party makes any alterations to the original written contract, the other party shares a reasonable expectation that the new version was the contract intended by the parties.

Dispute Resolution in Georgia Lease Renewal Issues

When it comes to Georgia lease renewals, there are myriad of disputes and subsequent legal claims. As with the entire term of the lease, a tenant may be sued for non-payment of rent. Apart from non-payment claims, there are claims for holdover rent payments, and claims to determine the new terms of the lease that the parties cannot agree upon.
A re-filed dispossessory action complaint can resolve any non-payment or holdover claims. In the case of a disagreement over the new terms of the lease, a tenant may file an action for declaratory judgment to ask a judge to specifically determine what the party’s obligations are under the proposed new lease term. A declaratory judgment action may also resolve other claims, such as whether certain provisions are enforceable under Georgia law.
Either party to a Georgia lease renewal dispute may request a jury trial.

Tips for a Seamless Lease Renewal Process

Mutual communication between the tenant and landlord is the best approach to a successful lease renewal. For the tenant, this often involves having a discussion with your broker or agent regarding what the market alternatives are for the specific space you are in. It is also important to know what else is available in your general area. A reputable broker will be able to provide you with relevant market information to help you make an informed decision. Once you have obtained this data, it is typically best to discuss with your landlord whether or not you are considering extending your existing lease. A good relationship with the landlord can not only pay off in the lease renewal process, it can also pay dividends down the road in the form of relationships that help you grow your business. On the landlord’s side (the landlord’s rep has a vested interest in the landlord’s ability to renew leases), it is important to maintain a line of communication with your tenant. It is always good practice to check in with your tenants several months prior to the expiration of their lease term to see if they are interested in renewing. Additionally, continuing to perform maintenance and improvements to the property, even if a tenant has some time remaining on their lease term, will demonstrate to your tenants that you value them and want to keep them as long-term tenants. The landlord or property manager should keep solid documentation of any and all correspondence with the tenant and, if applicable, their agent, regarding lease renewal terms. Not only will this allow the owner/manager to be able to identify when conversations about renewal have occurred, this information will also help determine how far in advance of the expiration of the current lease, a new lease should be drafted and executed.

Conclusion and Final Remarks

As we have explored in this article, Georgia lease renewal laws hold significant implications for both landlords and tenants. Understanding the requirements and processes outlined in the law is crucial to avoid inconveniences and potential disputes down the line. For instance, a tenant’s failure to provide notice of intent to renew or a landlord’s failure to provide the terms for lease renewal can lead to unwanted consequences for both parties. These consequences may include having to move out before a new lease has been signed or an increase in rent despite an assumption that the lease would be renewed on the same terms.
Furthermore, knowing the different types of lease renewal clauses can help tenants and landlords plan accordingly. Some leases contain automatic renewal clauses , which can lead to confusion and frustration if the lease is not intended to be renewed under the same terms. Others use holdover tenancy clauses, which allow the tenant to remain in the rental property under the same terms of the expired lease. Regardless, understanding the specific terms contained in the lease agreement can help avoid issues in the future.
In conclusion, as is the case with all aspects of Georgia real estate law, being aware of the rules and regulations that govern lease renewal can help avoid unnecessary disputes and misunderstandings. Whether you are a tenant or a landlord, it is important to understand how Georgia lease renewal laws affect your rights and responsibilities.