Rent Control in Georgia: An Overview
Georgia has the most landlord-friendly laws in the United States. While there is federal oversight of housing laws due to the Fair Housing Act, ownership foreclosures, and financing, and there are some federal blesses on public housing, anything having to do with private, non-subsidized rental housing is state law-based. Rent increase laws are no exception – Georgia state law allows for no rent control measure at any level. While some states have opted to allow for some amount of rent control or rent stabilization, not so in Georgia. This is because Under Article IX, Section II, Paragraph VII of the Georgia Constitution local municipalities cannot regulate the rent for privately-owned buildings.
The Constitution is not the only reason why Georgia has no rent control anymore. The Georgia Code Annotated §44-7-1 goes a little further and states: "the rent for any apartments or other lease entered into by any of the parties to any lease is not subject to regulation."
What about the 1970’s? There was a push in the early 1970’s for some kind of rent control for the state. In 1973, a rent control bill was introduced in the Georgia House of Representatives but it never passed into law. Lawmakers thought that establishing statewide rent control would stifle Georgia’s economic growth because it would create a disincentive to building more single-family residences .
What About Local Rent Control Enactments? Local city or county governments can levy rent control prescribed by the legislature if they choose, but statewide controls do not allow for this. Currently, there are no cities in Georgia with rent controls. However, the City of Atlanta instituted a 25% limit on rent increases in 2003. While there was no question that Atlanta went against state law by putting this limit on private landlords, the matter was eventually stopped by a federal court stop, which declared the effort unconstitutional.
Recent Attempts to Pass Rent Control in Georgia Currently, several northern counties of Georgia have instituted some controls on eviction proceedings and general tenant housing rights. By using anti-discrimination provisions, local courts have put in some general controls on evictions. In addition, there are some general housing rules for the seven-county metro area around Atlanta because these counties are part of the Atlanta Regional Commission. However, these housing rules have nothing to do with rent control – just general housing quality and health.
The Proposed Rent Freeze Bills for 2023 Just last year, there were numerous bills proposed to place rent freezes at the local and state level. None of these attempts passed in the Legislature. Most of these bills used similar language as what is found in California and New York, where they froze rent in most cases and imposed a 5% limit on increases for any increases. None of these bills has progressed into laws.
Rent Increase Legal Restrictions
Georgia has no laws limiting the amount a landlord can raise a tenant’s rent. Landlords are typically free to increase rent in whatever amount they wish at the end of the term of the lease or at the end of the one-year rental agreement if there is no written lease. If the landlord and tenant agree to a rent increase, Georgia law does not prohibit that agreement.
In the case of a written lease with a specific term, any clause in the lease authorizing a rent increase must be honored, but the landlord should make sure that a simultaneous notification is made to the tenant of the increase so as to be fair to the tenant. Furthermore, if a tenant is near the end of a lease or rental-agreement term and the landlord does not wish to renew the lease or agreement, the landlord must provide proper notice to the tenant. Any such notice period will be based on the location and/or size of the dwelling. Some leases will provide a specific notice period for non-renewal, but if they do not, the law will require notice of one month or the "interval rent is payable," whichever is longer.
In practice, many landlords prefer to give the tenant more notice of the increase than perhaps is required under the lease or the law in order to give the tenant an opportunity to make plans for moving out if that is what the tenant wishes to do. A reasonable increase may allow the tenant to remain and update his or her budget, but a dramatic increase that is not in keeping with current rental prices may compel the tenant to vacate the premises.
There are several statutes addressing such things as rent controls and how much notice landlords must give if they decide not to renew the lease. For example, Georgia Code § 44-7-4(a)(3) provides that a tenant may not be evicted "where the lease is for less than a 12-month period and there has been no breach of lease terms for the term of the lease" just because the landlord desires to increase the rent beyond what the rental market will bear. That statute was interpreted by the Georgia Supreme Court in Hill v. Swan Creek Apartments, 233 Ga. 225 (1975), where the court wrote, "We have interpreted the statute to say that where there are no breach of the lease terms for the 12 months and the landlord desires to increase the rent beyond that which the rental market will bear, the tenant may not be evicted… unless the landlord provides suitable housing for the tenant at a rental of the same amount as he is paying or less." While this statute is not a rent-control law, it does limit the landlord’s ability to increase the rent without compensating the tenant with alternate housing for the same rent or less.
Another rental increase and eviction law limitation is Georgia Code § 44-7-7. This statute provides that "[n]o person, owner, or landlord shall demand or receive unlawful rent or institute proceedings to enforce payment of rent not due," and defines unlawful rent as "rent in excess of the fair market rental value of the property." This statute essentially means that the landlord cannot raise the rent to a figure that exceeds the fair market rental value of the property without providing alternate housing for the tenant at that same or lower rental price.
Landlord Notice Requirements for Rent Increases
Section 44-7-4(b) of the Georgia Code specifies that the landlord or their agent must give all tenants at least a 60-day notice of rent increase before the increase takes effect. The notice must be in writing and may be served as described above in the section on notices generally. In summary, delivery can be via fax, email, posting to the resident’s door, by first class mail, by certified mail, and by hand delivery.
If the lease now in force does not allow the landlord to raise the rent, then a landlord cannot modify the terms of the lease after its execution by sending a 60-day notice.
If the lease allows for the raising of the rent, then it is not enough for the landlord to simply send notice of an increased rent. Rather there has to be language in the lease that provides that the rent will increase (name when) to (amount). There must be a date certain for the new rent to begin and that will require some planning on the part of the landlord to make the 60-day notice and the increase go smoothly and before the next rent payment is due.
Further, if the landlord wants to raise the rent after the lease is executed but the lease is silent about such an increase, there would need to be something in writing signed by both parties declaring that upon the execution of the written modification in the lease, the rent will be increased to (amount).
It is usually a best practice to have the tenant sign the notice of rent increase as well.
Exceptions and Special Cases
While Georgia’s general rules for rent increases apply to most residential rental agreements, there are notable exceptions and special circumstances. First and foremost, tenants and landlords may agree to a rent increase amount in writing before the rent increase is due to be paid. When this happens, that increase is covered by the prior written agreement and the new terms apply.
Some rental agreements are not residential for purposes of landlord-tenant law. For example, rental agreements for less than 30 days to living quarters are considered transient occupancy agreements rather than leases. Because they are not legally leases, they may have different rules from leases. In addition, rental agreements for resort or motel living quarters often are not regulated under landlord-tenant law. This may occur when a property serves as a temporary vacation rental. As well, owners of residence halls, academic dormitories, or private college housing are exempt from most landlord-tenant laws if the agreement does not exceed nine months.
In some cases , business relationships may dictate the terms of a rent increase. Such an agreement may be for an increase based on the income or revenue gained from leasing property. Other income-based rent increases incorporate a cost-of-living adjustment.
Basic requirements are in place to ensure that Georgia landlords do not raise the rent to excess. State law forbids landlords from charging tenants rent that is significantly more than the market value of the home. If a rent increase brings the cost of a dwelling above the market rate for a similar dwelling, the increase may not be enforceable.
Another special circumstance involves apartment buildings that offer equity ownership. These agreements allow tenants to buy part ownership of the property in exchange for rent. Rent-to-own deals, where the tenant can purchase the property over time, are also included. This ownership model has become more popular; however, it does have legal implications. If the tenant becomes a part-owner of the property, they may not be able to sue for eviction (e.g .eviction for late rent) in the same way that a standard lease would.
Your Rights and Repair Options
Georgia renters have rights that cover a rent increase that is unjust or unlawful. If a tenant believes that their landlord has not followed the proper procedure for a rent increase, has raised the rent by more than the set-out in their lease, or has provided no increase at all and it’s time for another, the tenant may have several options to contest the increase. Taking legal actions to protect tenant’s rights has many advantages. For one, any rent increase that is deemed illegal cannot be passed onto the rent-controlled unit (see below.) For another, landlords fear lawsuits, and will often look to settle these disagreements in order to avoid creating a precedent.
If the disparity cannot be resolved, and the renter feels justified in pursuing the issue further, legal proceedings will commence. It is important first for any tenant that is considering challenging a Georgia rent increase to consult with a law firm that has experience in housing disputes such as this. The law firm will provide a comprehensive assessment of the situation and the best possible course of action.
There is also an option for a rent control unit tenant to file a complaint with Georgia Housing and Community Development, which is responsible for overseeing compliance towards rent controlled properties. Although this office will investigate any paperwork errors, they will not consider whether the increase itself is unjust or inequitable. Often the local housing authority is inundated with complaints, and responding to them in a timely manner is not always possible. However, the housing authority can issue citations.
Another option exists for those who feel they are receiving an unfair rent charge, but do not qualify for rent control. Any tenant can give notice that they are planning to vacate their unit, and therefore create a vacancy upon the landlord. This, coupled with a thorough listing of uninhabitable conditions (frequently found in poorly maintained properties), can induce the landlord to waive the increase in order to avoid having to make repairs. For instance, if the tenant’s current rent was $600 per month, the landlord would have to spend between $1,000-1,500 on some repairs to garner a new tenant. A hiring bonus, of $300-500, may also be needed to get someone to accept the lease. This may be used to induce the landlord to drop the rent increase.
If the landlord refuses to negotiate, then even currently compliant properties may have to be placed into rent control. Tenants have the ability to petition that a unit should not be allowed to raise its rent, citing any and all violations that the property may have. The tenant must show a history of rent raises (that are not associated with improvements) as well as increases in crime and/ or violence in the neighborhood.
Negotiating Rent Increases with Your Landlord
Negotiating a rent increase can be an uncomfortable situation for both parties, but there are some things the tenant can do to help make the process easier. First, start by approaching the landlord about the proposed rent increase, and note that they are open to a discussion on the subject. If the landlord is not interested in discussing the reason for the increase, ask to have the conversation at a later date. Many landlords realize that good tenants are hard to find, and would be willing to negotiate a reasonable increase in rent to avoid having to find a new renter. Conducting research on the rent rates in the area for their property type can help tenants to identify a reasonable increase. If the landlord is open to it, offer to sign a one-year lease if they agree to forgo raising the rent. If the lease term is being up for renewal anyway, the tenant can make a new lease contingent on a one-year term and not increase the rent . This can ensure the tenant has stable rent for the next year while also allowing the landlord time to find a more competitive rate for the tenant if they choose to renew a subsequent year. Finally, be flexible. Offering something in return for a lower rental rate could help encourage the landlord to be amenable to negotiating. For example, of the utilities are included in the rent, the tenant could consider paying those separately in exchange for reducing the rental rate. If the owner is considering raising the rent significantly, the tenant might consider moving, which would mean the landlord has to spend time and money on finding a new tenant, so countering with a lower increase might be better for both parties. If nothing else works, the tenant can always offer to move out on or before the expiration of the lease term. There is no rent increase law that prohibits the tenant from leaving the lease at that point. While it is not always feasible, it could help to show the importance of maintaining a good relationship with the tenant if the landlord wants to keep renting the property to them.