Can you hold a security deposit on your short-term rental property? SHOULD you? What is your Broker’s policy? Do you have to tell your Broker you even have a property on Airbnb or VRBO? … The answer to that one is YES – per GA License Law! As a Licensed Real Estate Agent in Georgia, make sure to check:
- GA License Laws
- GA Landlord-Tenant Laws
- Local Governmental Regulations & Required Taxes
The following is a synopsis of the latest episode of “Real Estate Made Crystal Clear” with our very own Dana Sparks. You can watch the video in its entirety below.
As a real estate agent, you must be aware of the rules and regulations that apply to short-term rentals in Georgia. These types of rentals include Airbnb and VRBO. This article will provide a brief overview of the license laws that you must keep in mind when dealing with short-term rentals.
Real Estate License Requirements
In order to manage property for others in Georgia, you must have a real estate license. However, you do not need a license to manage property that you own. Additionally, if you want to manage property for someone else, you must work through a registered real estate firm that is registered with the Georgia Real Estate Commission and has a qualifying broker.
Trust Money and Security Deposits
According to Georgia law, a licensed real estate agent may hold security deposits, trust funds, and escrow funds as long as they are the sole owner on title or a member of an LLC that owns the property. The trust account must be registered with the Georgia Real Estate Commission and the broker has full access to the accounting of the account. However, only a qualifying broker can register the trust account. Agents must also provide a quarterly reconciliation of the trust account to their broker.
Holding Trust Funds in Short-Term Rentals
If a broker does not allow agents to have their own trust accounts, agents can still have rental property with security deposits, but they must turn in the trust money to the broker or hire a property management company. The broker will hold the trust money in their trust account and agents must comply with Georgia landlord-tenant laws for the release of the security deposit at the end of the lease.
In conclusion, as a real estate agent in Georgia, you must be aware of the license laws and regulations that apply to short-term rentals. Always check with your broker for their specific policies regarding trust accounts and holding security deposits. Ensure that you comply with all license laws and Georgia landlord-tenant laws to avoid any legal issues.
Watch the entire video for more information here: