A Primer on the Georgia Rental Agreement
A Georgia Rental Agreement (also often referred to as a lease or rental agreement) form is a simple, but important, legal document that is used to define the terms of a tenancy between a landlord and tenant. The Rental Agreement form is necessary when there are basic terms or conditions of a tenancy which both parties want to establish in writing to avoid future disputes. While it is typical for landlords to favor using a written Rental Agreement form, it is not a requirement in Georgia. Even when there are no more than 5 rental units, for example, Georgia law does not require a written Rental Agreement form (O.C.G.A. 44-7-4). A lease is not an essential element of a landlord-tenant relationship. But, for many Landlords who are concerned about setting boundaries for a tenancy, a written Rental Agreement form is an important tool.
And for tenants, it is an important way to establish what rental property rights they are entitled to. For instance , the Georgia Residential Landlord and Tenant Act (O.C.G.A. 44-7-1) implies specific rights into every Rental Agreement form, regardless of whether the Rental Agreement form is written or not. These rights include implying: A written Rental Agreement form will set out these specific rights and also may contain additional provisions that govern other aspects of the Landlord-tenant relationship. But, because there are no State of Georgia Rental Agreement form laws, there are almost unlimited ways to create and organize the express provisions of a Rental Agreement.
A Georgia Rental Agreement form’s basic components typically include: price or rent per month, security deposit amount, duration of the tenancy, the parties to the tenancy, the physical address of the rental property and sometimes amenities or special conditions to the tenancy, such as pets, smoking, etc.
Legal Specifications for Georgia Rental Agreements
Liability for claims between Landlord and Tenant. The case law states that if there is no specific apportionment of liability between the Landlord and Tenant in the Lease, the parties will be joint tortfeasors and thus potentially jointly and severally liable under Georgia law.
Termination Date. For residential leases, the termination date shall not be a day that the courts are closed.
What if the tenant does not move out? The courts may enter a judgment for possession and set the lockout date to be on a business day that the courts are open to execute the judgment for possession.
Partial Rent abatement. Landlords are entitled to a partial abatement of rent if part of the premises is subject to a fire or casualty loss.
Rent Prorated. Rent shall be prorated on a daily basis if the Rental Agreement start or end dates are not the first or last day of the month.
Co-Tenant Consent. The lease should set forth who consents to binding arbitration with the landlord on behalf of himself or herself and all other tenants who signed the lease with him/her.
Tenant Breach. Upon a tenant’s breach of the rental agreement, a landlord must send a written ‘Notice of Breach’ and a ‘Notice of Right to Demand Early Possession’ in accordance with O.C.G.A. ยง 44-7-50.1.
Essential Provisions in Georgia Rental Agreement Forms
While it’s not a requirement, written rental agreements or lease agreements provide clear guidelines for landlords and tenants. Although both parties may rely on an oral agreement, there could be misunderstandings about the terms. Both parties might even consider an oral understanding binding, but if there are disputes, an oral contract can be difficult to enforce. Written rental contracts usually have key elements including the following clauses: Lease Periods: A rental can be created for any period of time. The rental agreement form should clearly specify if it’s for a month, two months, a year, etc. If the lease is for a year or more, it has to be in writing to be enforceable. Rent Payments: The rental agreement should have a clause stating when rent is due and how it’s to be paid. Acceptable payment methods include money orders, checks, credit/debit cards, cash, and bank transfers. Bank transfers typically require writing authorization to have funds automatically taken out of the tenant’s account. It’s important to make rental payments convenient so payments are never late. If the payment method makes it easy for the tenant to make full, on-time payments, then the landlord or property manager can avoid many headaches. Deposit: Landlords can require a security deposit from the tenant before moving. Some landlords do not require a security deposit, but if one is charged, the rental agreement form should clearly explain what purposes the funds will be used for, and when and how they will be returned to the tenant. In Georgia the landlord must deposit the funds in an escrow account and return the funds 30 days after the tenant vacates unless the funds were used after the tenant broke the lease agreement without providing proper notice. Repairs: A Georgia rental agreement form should state whether the tenant or landlord is responsible for repairs, such as leaky faucets, replacing light bulbs, or changing air filters. If the tenant has to make repairs, and the landlord or property management company pays for them, the tenant must reimburse the amount. Renter’s Insurance: Landlords may want the tenant to maintain insurance. A renter typically wants insurance to protect against liability too. The rental agreement form will need a provision regarding the named insured and insurance requirement. Termination: It’s best to follow the termination procedures explained in the rental agreement. All states have landlord-tenant laws that specify the number of days the landlord must give a tenant to vacate the property, but the rental agreement may have other termination conditions that both parties must comply with.
Editing Your Georgia Rental Agreement
A primary concern when customizing a rental agreement form is ensuring that each provision aligns with Georgia law. However, with a few simple modifications to certain elements, landlords can create a unique form that fits their specific property needs. For example, a landlord may want to specify a higher late fee for late rent payments, with a reasonable grace period. Georgia law does not place a cap on how much a late fee can be, so long as the fee is reasonable. Other specific provisions may include the following:
Rent Due Date and Late Fees: The rental agreement should specify when the rent is due and the method of payment (e.g. check, PayPal, cash) that is allowed. Georgia law states that rent is considered due the day after it becomes due. Landlords may want to require rent to be received by the first of the month or the fifth. The rental agreement should specify what qualifies as notice provided by the landlord to the tenant. Many landlords will require a written notice to be delivered in person, but some may be willing to accept notice via email or text message.
Utilities: Georgia law states that residential landlords are required to notify their tenants of whether or not the landlord is obliged to pay utilities . To that end, the rental agreement should reference which party is responsible for transportation costs for propane, gas, electric, and water (in some counties, garbage may also be covered).
Damage Deposits: Georgia law states that landlords may charge a security deposit that cannot exceed the amount of one month’s rent. The landlord retains the right to use this security deposit to repair damage to the unit that is in excess of normal wear and tear. It should be specified in the rental agreement whether the landlord or tenant is responsible for damages to common areas. In some cases, landlords may include a provision requiring a tenant to replace any damaged hinges, keys, or locks that result from "normal use."
The above provisions are merely suggestions for customization. Many other provisions included within a custom rental agreement are permissible under Georgia law – too many to address them all here. But rest assured, by utilizing a template rental agreement form and customizing it to fit your property, you can ensure compliance with Georgia law – and avoid potential disputes.
Common Pitfalls in Georgia Rental Agreements
Common mistakes can lead to disputes or even civil court actions. While this is not an exhaustive list of mistakes, here are some of the most common pitfalls to avoid in Georgia rental agreements:
Late fees: Georgia does not have a state law that prescribes maximum late fees. However, there are cities and counties in Georgia that do. Landlords should be careful to comply with local ordinances regarding late fees before collecting them.
Maintenance and Repair: Should you allow tenants to conduct repairs to the property? Under Georgia law, all maintenance and repair of the rental property cannot be delegated to tenants unless the rental agreement provides for it.
Security deposits: Security deposits in Georgia cannot exceed two months or the monthly rent of the premises, whichever is less. A pet deposit cannot exceed one-half of the normal amount of the security deposit. Landlords should not make deductions for normal wear and tear on the premises.
Owner-occupied agreements: A rental agreement between a landlord and a tenant is not created where the tenant shares living space with a landlord. Under Georgia law, a rental tenancy can only be created where the tenant has exclusive possession of the unit. Accordingly, the owner/occupant must remove his or her personal belongings and intentionally vacate the premises before someone else can move in.
An agreement will become void if the tenant fails to occupy the premises within 30 days after the agreed date of occupancy. A rental agreement that does not contain such a provision serves as prima facie evidence that the premises may be vacant for 30 days without rendering the rental agreement void.
Georgia Rental Agreement Resources and Forms
Finding the right Georgia rental agreement that meets your specific needs can be a challenge, especially when navigating the various forms required by Georgia law. However, there are a number of reliable resources and templates available to both landlords and tenants. The State of Georgia provides an assortment of resources on their My Voter Page, including links to the Georgia Rental Agreement Form and FAQs about rental agreements. Additionally, the Georgia Department of Community Affairs provides a comprehensive "Guide to Your Georgia Landlord Tenant Obligations", which includes information on fair housing, security deposits, rent increases, and the process for handling damages to rental property . There are also private companies that offer both free and paid templates for Georgia rental agreements. Websites such as eForms and Law District provide a free downloadable Georgia rental agreement form, while similar services offer paid templates that can be customized based on the specific situation. Finally, it is always worthwhile to check with a local real estate or rental property management company for any proprietary forms or templates they may have available for free or at low cost.