If you are considering property management, it is imperative that you follow Georgia’s Landlord-Tenant Laws. All newly executed Leases must be submitted to RMCR as soon as possible for processing along with the Lease Contract Input Form. This Form can be found in the In-House Forms Section of appFiles. Leases must have a corresponding Broker Engagement Agreement, either a Management Agreement, Lease Listing Agreement, Tenant Brokerage or Customer Acknowledgement.
Option 1: Leases can be submitted by changing the File Type/Name to Leases in the Broker Inbox in appFiles.
Options 2: Leases can be emailed to the General Inbox at [email protected].
*Please note: A new appFile will be required for each time a property is leased to a new tenant. Lease Renewals can be uploaded to appFiles that have already been processed by RMCR.*
Leasing Services
*Unless previously approved by Broker, RE/MAX Center Agents managing properties are required to utilize RE/MAX Center’s Leasing Services.
Services
-Provides access to professional property management software with Propertyware.
-Tracks and accounts for tenant’s monthly rental payments and security deposits.
-Daily email updates on balance dues to Property Manager and tenants.
-Notifications to Property Manager and Landlord of lease expirations.
-Pays vendor bills out of rental proceeds.
-Processes security deposit at the direction of the agent.
-File dispossessory warrant with Renters Reference Services and assist in eviction processing.
-Processes applications including running credit check, criminal check, eviction check, verifying income, verifying rental history from apartments and management companies.
-Pays Landlords prior to the 15th of the month in most cases.
-Provides Landlords with the option of receiving their payments by direct deposit or by mail.
-Sends Landlords monthly comprehensive statement detailing the tenant payments and any charges they incur.
-Sends an annual statement and 1099 to Landlords and submits appropriate forms to IRS and Georgia Department of Revenue.
-Provides Landlords with access to an online Owner Portal.
-Provides Tenants with access to an online Tenant Portal.
Fees
- Agent fee is $15.00 per month per property.
- Mailing statements to owners is a $3.00 fee (Charged to Landlord if listed in management agreement)
- Online Tenant payments incur a $1.00 fee at the tenant’s expense.
- Eviction fees including dispossessory warrants and attorney fees are charged at cost to Landlord. There is an additional $50.00 administration fee for filing dispossessory warrants.
Application Processing
Leasing Services charges an application fee of $65 per applicant. Applications can be filled out online at www.atlantaleasingcenter.com. Applicants are asked to provide a copy of their photo identification and income documentation. Application processing includes the review of their credit report, residential history, employment/income, eviction check and a criminal background check. Once all documentation is in, RMCR Leasing Services will send you a summary of information along with a recommendation on how to proceed. RMCR Leasing Services is not permitted to provide you with a copy of the credit report. Please note, application processing is very thorough and the time to process can range from 2 to 5+ business days depending on how long it takes to gather proper documentation from the tenant and previous landlords.
Commission
Agents can expect to receive their monthly management fee commission no later than the 15th of the month for properties with rental proceeds received by the 12th of the month. Commission reported to RE/MAX Center includes: Procurement Fees, Management Fees and Renewal Fees.
Online Services
RE/MAX Center’s Leasing Website is www.atlantaleasingcenter.com. On this site, prospective applicants can apply for a RE/MAX Center rental listing online, current tenants can make online payments and current owners can access portfolio information.
Georgia Landlord-Tenant Law
While there are many rules and regulations with Georgia Landlord-Tenant Law that you must familiarize yourself with, handling Security Deposits, Evictions and Application are detailed below:
Security Deposits
- Security Deposits cannot be collected from a Tenant in Georgia until a Move-In Inspection has been completed.
- When a Management Agreement is in place, Security Deposits must be held by RMCR. RMCR Agents with any ownership interest in a Leased Property are required to hold Security Deposits in RMCR’s Holding Trust Account.
- Within three (3) business days after a lease terminates, the landlord must inspect the unit and prepare a list of all damages and the estimated dollar value of such damages. The landlord must sign the list and provide it to the tenant.
- The tenant has five (5) business days after the termination to inspect. The tenant must sign the move-out inspection list or specify in writing the items in dispute.
- RMCR will not release a Security Deposit without a signed Move-Out Exhibit.
- Security deposits must be returned within 30 day after tenant surrenders the premises. If the security deposit is not returned due to damage, a letter much be sent to the tenant identifying the damage, dollar amount and a refund, if any, of the difference between the security deposit and amount withheld for damages.
- Security deposits and any statement of damages must be mailed to the tenant’s last known address even if it is the vacated rental property.
Deductions from the Security Deposit: The landlord cannot retain the security deposit to cover normal wear and tear. However, the landlord may deduct for:
- Physical damage to the premises by the tenant, members of the tenant’s household, pets or guests
- Damage caused by negligent or careless acts
- Damage due to accident or abuse of the property
- Unpaid rent or late charges
- Unpaid pet fees
- Unpaid utilities that were the tenant’s responsibility under the lease
- Damage to the landlord caused by early termination.
Repair or replacement amount?
*Example: Tenant damaged ten-year-old carpet so it can no longer be used, the tenant should be charged for the value of the ten-year-old carpet and not for the cost of the new replacement carpet.
Amounts withheld must be reasonable.
Damages exceed security deposit?
*Landlord can sue tenant for cost of damages above security deposit amount.
**Please note that Georgia State Law can award the resident 3x the amount of a wrongfully held Security Deposit. You will want to make sure you can account for all charges against the Security Deposit with receipts.
Prepaid Rent
Prepaid rent is considered the property of the Tenant and must be held in RE/MAX Center’s Trust Account until the rent is due. For example, a tenant pays $12,000 when moving into a property intending for it to be applied to rent for the next 12 months of $1,000 per month. Your property management fee is 10% of rent collected. $1000 may be applied to rent due each month and 10% may be applied to your management fee each month. You cannot pay the owner the full amount of funds or take your full management fee upfront.
Late Notices and Eviction Filing
To ensure a manageable process, Leasing Services request that late fees be either a flat fee or a percentage with the suggestion of rent being late after 9:00 a.m. on the 4th of the month. We recommend that the tenant is immediately sent a Demand for Possession Letter as soon as rent is considered late.
In Georgia, landlords cannot kick tenants out of or prevent access to a unit without going through the court dispossessory process. Self-help evictions are illegal, even if the tenant has violated the lease. During the eviction process, the tenant can remain in possession of the property until there is a court decision. During this time, the landlord cannot cut off utilities.
EVICTION PROCESS:
1. First, read the lease! The landlord must comply with lease terms regarding notice and termination.
2. Demand for possession. The landlord must demand in writing that the tenant immediately give up possession and vacate.
3. RE/MAX Center will file a dispossessory warrant on your behalf but please note, after filing a dispossessory based on nonpayment of rent, the landlord cannot accept rent from the tenant without cancelling the dispossessory warrant.
4. After the warrant is filed, the local sheriff will typically tack the notice on the door of the home and send by first class mail to the tenant’s address.
-If the tenant fails to respond within 7 days of the tack and mail, the lawsuit is in default and the court can grant a writ of possession for the sheriff to immediately remove the tenant. Note, if the tenant did not file an answer or appear in court, the court may still order the tenant to move, but cannot award rent or other money damages to the landlord
-If the tenant answers, even if it does not contain an adequate legal defense, a hearing is set to determine whether the answer has legal merit.
5. Tender Defense A tenant may be able to avoid eviction by paying all rent the landlord alleges is owed plus court costs. The amount owed should be stated on the dispossessory affidavit and the tenant must offer payment within seven (7) days of receiving the dispossessory affidavit. The landlord is required to accept the payment up to once a year. Often, a judge will not require a Tenant to pay any additional fees such as administration fees listed in the lease.
6. Writ of possession. If the court rules for the landlord, we will request a writ of possession that requires the tenant move after seven (7) days and may also demand payment of past rent owed. The writ is a separate document from the court’s order. Once a writ of possession issues, the following occurs:
- The sheriff will schedule a date and time for the eviction. This time/date should never be disclosed to the tenant. A crew must be hired to handle removal of the tenant’s possessions as the sheriff supervises. The crew must consist of 2 persons per bedroom. The landlord is responsible for the cost of eviction.
- When a tenant’s personal property is removed, the property may be placed on the sidewalk or street. The landlord must use reasonable care in removing the property, but once removed, the landlord owes the tenant no duty to protect the personal property. If the landlord transports the property elsewhere or leaves it in the unit, he may be sued by the tenant for conversion.
Application Processing
It is imperative to ensure your application processing clearly does not violate any Fair Housing Laws as listed below. You can do this by ensuring that status of persons listed below are not communicated to Landlord and are therefore not used in determining approval of an applicant for a property. RMCR’s Leasing Services Application Services, protects these requirements and it is highly recommended to use their services for application processing to protect yourself and your clients from claims of discrimination.
Federal Fair Housing Laws protect persons from discrimination based on.
- Race
- Color
- National origin
- Religion
- Sex
- Disability
- Familial status
- Age
County and City Ordinances may contain housing codes that affect rental property. Many ordinances are online (https://www.municode.com/library/ga) or at your local county commission or city hall.
Applications require the handline of very private, sensitive information including credit reports. The Fair Credit Reporting Act (FCRA), Public Law No. 91-508, was enacted in 1970 to promote accuracy, fairness, and the privacy of personal information assembled by Credit Reporting Agencies (CRAs). A Property Manager can never legally disclose a Tenants personal information. If you disclose credit information to anyone (including the Landlord) you can be held liable for any harm -- financial or otherwise -- that you endure as a result. Best practice is to give a recommendation of approval or denial of a tenant without giving specific details contained in a credit report.
You may deny a rental application as long as you can prove that every applicant was screened with the same standards. The way you tell a renter they are “not approved” needs to be handled legally, especially if you deny a renter due to their credit score, information on their credit report or another public record. If an applicant is rejected based on information on a credit report, the landlord must provide an adverse action notice. Providing this notice is a federal requirement created by the FCRA.
If you are accepting an applicant under the stipulation that they pay an additional deposit, an Adverse Action letter is still required to be sent.