BLOG

January 14, 2025
by Jacob A. Machitar

With the New Year underway, now may be a good opportunity to re-examine your lease agreements and eviction policies and procedures to ensure you remain on the right side of the law in 2025. Hot on the heels of the Forest Cove condemnation and a severe backlogging of evictions in Metro Atlanta since 2021, the Georgia General Assembly enacted HB 1203 and HB 404 in 2024. The changes made by HB 404, entitled the Safe at Home Act (“SAHA”), apply to any residential lease entered into on or after July 1, 2024. If you are a landlord or property manager, it is crucial that you stay informed and are proactive in maintaining compliance with these new laws.

Below are the key takeaways you need to know from the SAHA and HB 1203:

1. Security Deposits Capped at 2x Monthly Rent: The SAHA added a new code section (O.C.G.A. § 44-7-30.1) which limits the amount that landlords may require as a security deposit to twice the monthly rental rate. For example, if monthly rent is $2,000.00, landlords cannot demand a security deposit greater than $4,000.00.This new provision affects mostly those landlords deciding whether to rent to risky prospective tenants – typically those with low credit scores, a history of eviction, or a low income-to-rent ratio. In those types of cases, it can be customary for landlords to demand an amount two or even three times the monthly rent as a security deposit. The balance of security deposit laws are unaffected. Accordingly, it is important to remain mindful of how and where you keep security deposits. If you (1) use a third party to manage your property, or (2) have 11 or more rental properties between you, your spouse, and minor children, you are required to keep security deposits in an escrow account and inform the tenant of its location. See O.C.G.A. §§ 44-7-31 and 44-7-36.
2. Codification of the Implied Warranty of Habitability: While Georgia courts have long recognized an implied warranty by landlords that their premises are fit for human habitation when renting them out, the SAHA now automatically makes this warranty a part of all residential leases.
3. Three-Day “Pay to Stay” Notice: The most extensive changes brought by the SAHA relate to making a demand for possession and the conditions precedent to filing a dispossessory action. For leases entered into on or after July 1, 2024, landlords seeking to evict tenants for nonpayment of rent, late fees, utilities, and other charges are now required to serve the tenant with a “three-day notice to vacate or pay.” See O.C.G.A. § 44-7-50(c).The new statutory scheme sets no limit on the number of times landlords must give 3- Day Pay to Stay notices. As such, bringing the account current during a 3-Day Pay to Stay period can act as a “Get Out of Jail Free” card for tenants throughout the lease term.

   Under this new scheme, it is imperative that landlords act as soon as practicable in accordance with the terms of their lease to send 3-Day Pay to Stay Notices. Doing so will increase the chances of a successful eviction later. A little planning and strategic timing early on can increase your chances of dispossessing nonpaying tenants efficiently and, ultimately, maximize your upside.

4. New Provision for Delivering Notices and Demands: The SAHA now requires landlords to post 3-Day Pay to Stay Notices and other demands for possession conspicuously on the front door of the premises in a sealed envelope. See O.C.G.A. § 44-7-50(d). Landlords must also continue to send any demands or notices under the statute via any method set forth in the lease to ensure the tenant was properly given notice.
5. Landlords May Be Able to Use Off-Duty Officers to Execute Writs of Possession: It is no surprise that Metro Atlanta courts and Sheriff Departments have been severely backlogged in hearing and executing dispossessory actions since late 2021, due in large part to the eviction moratorium in place during the COVID pandemic.With HB 1203, off-duty sheriffs, sheriff deputies, constables, marshals, or other individuals “certified by the Georgia Peach Officer Standards and Training Council” are now permitted to execute writs of possession. The initial cost of utilizing such services, however, is borne by the landlord. Each of those offices will compile and maintain a list of individuals who are authorized to perform this off-duty work. See O.C.G.A. § 44-7-55(e).

   This new remedy does not kick in until 14 days have passed after execution of a writ of possession has been applied for or requested. Finally, landlords must call to schedule writ executions no less than 5 days in advance of their desired execution date.

While the balance of changes brought by SAHA and HB 1203 lean decidedly in favor of tenants, the general theme of this year’s legislation appears to be “fix the eviction crisis.” Whether through preempting potential dispossessory actions via the 3-Day Pay to Stay period or expediting execution of outstanding writs of possession, it is clear that the emphasis of the new laws is to reduce backlogs and prevent unmeritorious cases altogether. Nonetheless, when armed with proper knowledge and guidance, the new laws can provide landlords with a smoother eviction process than they have seen in years past. Whether you’re seeking counsel to help you navigate the recent developments in landlord-tenant law or need assistance with a complete overhaul of your standard lease to maximize protection of your rights, the experienced attorneys at Flint, Connolly & Walker, LLP can assist you with all areas concerning your residential real estate investments.

Jacob A. Machitar is an associate attorney at Flint, Connolly & Walker, LLP who assists businesses, including a variety of corporate and individual landlords with their litigation related and general legal matters.