Georgia Rental Laws: Pro-landlord, Neutral or Pro-tenant?

Georgian landlord and tenant laws are judged by the Global Property Guide to be Pro-Landlord between landlord and tenant. The legal framework in Georgia favors landlords, offering them flexibility and control over rent, eviction, and lease terms. Tenants must rely heavily on the lease contract to protect their rights, so it’s crucial for tenants to negotiate clear, fair terms and get everything in writing.

Can landlord and tenant freely agree rents in Georgia?

Georgian law allows the landlord and the tenant full freedom to negotiate and agree on the initial rent amount. The parties can also freely negotiate increased rents as well as cost-of-living rent increases.

The Civil Code of Georgia does not impose strict notice periods for rent increases, but reasonable notice is generally expected under contract and civil law norms. A common practice is to give 30 days’ notice before a rent increase, but this should be clarified in the lease.

Georgia does not have rent control laws like some other countries. This means there is no legal cap on how much rent can be increased, as long as it doesn’t violate the agreed contract or general principles of fairness.

Deposits

The law does not require making a deposit as a condition precedent for the effectiveness of the tenancy. This too, can be contractually agreed upon by the parties.

A landlord is not allowed to charge a security deposit that exceeds the equivalent of two months' rent

Duration of contract/Eviction

Georgian tenancy law does not require tenancy contracts to be concluded for any specific period, i.e. in case the contract itself does not indicate specific term, it is deemed to be entered into for an indefinite period.

Indefinite period contracts may be terminated any time provided the terminating party serves three months notice to the other party. No other condition is necessary for the termination of indefinite period contract; therefore, such arrangement does not provide any stability to the tenancy relations for either of the parties. Consequently, the vast majority of tenancy agreements in practice in Georgia are fixed-term contracts.

If a tenancy contract is concluded for a fixed term, then the tenant may claim extension of the contract for an indefinite term by giving written notice thereof at least two months before termination of the rental relation, provided the landlord consents to this.

A termination notice is required in case the contract is terminated prematurely, but not upon expiration of the contract. That a tenancy relation is terminated upon expiration of the term of the contract is given in the law. In the event the tenant continues to use the property after expiration of the term and the landlord does not object thereto, then the contract shall be deemed to have been extended for an indefinite term.

In Georgia, landlords are required to meet several important responsibilities. They must provide rental properties that are safe and livable, comply with regulations regarding security deposit limits and return procedures, follow all applicable state rental laws, and adhere to anti-discrimination policies. Ensuring a habitable living space means landlords must meet the standards set by their local warranty of habitability, which requires the property to be kept in a condition that is safe and suitable for occupancy. If a major repair is needed, tenants have the legal right to notify the landlord in writing. Once the request is made, the landlord is obligated to address the issue within a reasonable timeframe. If they fail to do so, tenants may be allowed to deduct the cost of the repairs from their next rent payment.

Finally, the law stipulates that in case the subject of the tenancy relation is a furnished apartment, then the landlord may always terminate the contract provided he observes the 3 months time period fixed for termination of the contract.

How effective is the Georgian legal system?

Tenancy regulations, as part of the civil legislation, are enforced by the courts of Georgia, unless the parties agree to submit to arbitral proceedings. Court proceedings are usually lengthy and no specific dates may be determined in advance as to the reasonable time period for the final settlement of tenancy disputes. Depending on the complexity of the merits of the tenancy case, it could take from 3 months up to 2 years to resolve the issue.

Legislation

Tenancy relations are regulated by the 1997 Civil Code of Georgia, in particular, Articles 531-575.

Brief history

Georgian tenancy legislation underwent major reform in November 1997, when the Civil Code of Georgia was adopted. No alterations have been introduced to the relevant chapter of the Civil Code since 1997. Prior to that, old Soviet regulations were governing tenant / landlord relations and all issues arising out of such relations.