Financial disagreements upon moving out — the number one problem when renting housing in Georgia. Money is paid quickly upon move-in, but on the day of handing over the keys, tenants often find out with surprise that no one planned to return their "deposit," or that half of it is being withheld for cleaning and scratches from five years ago.
The main root of conflicts is confusion of concepts. What owners and brokers in Tbilisi and Batumi call "deposit" verbally often does not work like a classic insurance deposit. We analyze how payments are actually structured when renting in Georgia, how "last month" differs from a real deposit, and how to protect your money even before moving in.
"First and last month" vs Insurance deposit: main confusion in Georgia
Historically, the classic insurance deposit (Security Deposit) was rarely taken in Georgia. The traditional and most common scheme in the local market is payment for the first and last month (First and Last Month). Upon move-in, you pay double the rent: for the current month and an advance for the final (e.g., 6th or 12th) month of the contract.
The catch: owners often call the payment for the last month "deposit." But this is not refundable money, but prepayment for living. In the last month, according to the contract, you simply live in the apartment and pay nothing more for rent.
Due to the mixing of these concepts, two deadlock situations often arise:
- Tenant considers the amount as a deposit: conscientiously pays the last month and expects to get the money back in cash on the day of departure. The owner shrugs: "This was the payment for the last month, no money left, you have already lived it."
- Owner cannot cover damages: the tenant lives the last month for free. On the day of departure, it turns out that the sofa is broken or a large sum is owed for electricity, and there is nothing to withhold. Scandals and attempts not to return things or keys begin.
What schemes are currently used in the market:
- First + last month: found in 70–80% of listings. Money for the last month is not returned, it goes towards living in the final month.
- First month + insurance deposit: the classic scheme where the deposit remains with the owner as a pledge for the safety of the property. In the last month, you pay regular rent, and the deposit is returned to you upon move-out after inspection.
- First + last + deposit: a scheme that has become common in recent years for apartments with fresh designer repairs, expensive appliances, or when moving in with pets.
What to do: when signing the contract, directly clarify with the owner and fix in the text: "Is the transferred amount an advance for the last month of living (credited to rent) or a refundable insurance deposit (returned on move-out if no damages)?".
Early departure: why money "burns" in Georgia
Standard long-term rental agreements in Georgia are usually for 6 months or 1 year.
Almost all standard contracts include a strict condition: if the tenant decides to move out earlier (even if warned a month in advance), the payment for the last month or deposit is withheld by the owner as a penalty for early termination.
If you are not sure you will stay in the apartment for the entire period:
- Insist on including an early termination clause in the contract: "The tenant has the right to terminate the contract early unilaterally, by written notice to the landlord at least 30 calendar days in advance, without penalties. In this case, the amount for the last month is credited for actual stay (or the deposit is fully refunded)."
- If such a clause is not in the contract, the only peaceful way not to lose money is to offer the owner to find a new tenant on the same conditions before your departure.
Trap with utilities: why the deposit return is delayed for weeks
This is the most common cause of disputes when moving out of an apartment in Georgia.
Utility bills — electricity (Telmiko/Telasi, Energo-Pro), gas (Tbilisi Energy, Socar), water (GWP), and garbage collection — are charged from the 8th to the 15th of the following month.
If your contract ends on the 30th or 31st, the bills for the current month are not physically available in banking apps (TBC, Bank of Georgia). Dishonest owners use this as a reason not to return the money: "I will return the deposit after the 15th, when the bills arrive." When the tenant moves out (especially if leaving the country or changing SIM cards), the owner often stops responding or issues fictitious debts.
How to properly close utilities upon moving out:
- Meter readings on-site (best option): on the day of handing over the keys, photograph the readings of the electricity meter, gas meter, and water meter. Subtract the previous paid reading, multiply the difference by official tariffs, and give the amount in cash or transfer directly when handing over the keys.
- Small holdback for utilities: if the owner insists on waiting for bills in the banking app, agree to take the main part of the deposit immediately on the day of departure, and leave a small fixed amount for utilities (usually 100–200 GEL in summer, up to 250–350 GEL in winter with individual gas heating). Fix in correspondence or a receipt: the remaining amount the owner agrees to return to your card (TBC / BoG) within 24 hours after bills appear.
Normal wear vs damages and "cleaning"
Another common claim upon departure is the attempt to withhold $50–$100 "for general cleaning" or to hold money for micro-scratches on the walls.
In new buildings in Tbilisi, walls are almost always painted with matte water-emulsion paint without a protective layer — traces from furniture, suitcases, or clothes are easy to leave. According to the Civil Code of Georgia, the tenant is not responsible for normal wear and tear of the housing.
- You should not pay for: faded paint over time, micro-scratches on walls, natural aging of the mattress, burnt-out bulbs, wear of household appliance seals, or leaking old faucet (these are costs of the owner for depreciation).
- You are only responsible for actual damages: broken mirrors and plumbing, deep chips and holes, burnt linoleum or laminate, upholstery damaged by claws, or equipment breakdown due to improper operation.
To avoid disputes about cleanliness: fix in the contract that the apartment is returned in a "habitable and visually clean condition after standard cleaning." If the owner requires mandatory professional cleaning upon departure — fix its exact cost in lari in advance so it does not double in the day of departure.
Safety checklist upon move-in
To return your money without stress after six months or a year, do four things within the first 24 hours:
- Check the owner in the Public Registry (NAPR):
Before transferring money, ask the landlord for the cadastral code of the apartment (საკადასტრო კოდი). On the official portal napr.gov.ge, you can download an up-to-date electronic extract (ამონაწერი) and verify that the person signing the contract owns the property and that there is no court arrest on the apartment. If the apartment is rented out by a representative — demand a notarized power of attorney. - Make continuous video and macro photos before unpacking:
Record a video of the entire apartment, paying special attention to corners, skirting boards, oven, bathroom tiles, plumbing, window frames, and mattress condition (be sure to remove the mattress cover). - Send all photos and videos to the owner via messenger within the first day:
Send the materials in WhatsApp or Telegram chat with a neutral comment: "Recorded the initial condition of the apartment upon move-in." This will create an indisputable digital trail with date and time, preventing the possibility of claiming old defects upon move-out. - Record an inventory of property:
If valuable appliances (dishwasher, expensive TV, air conditioner) remain in the apartment — record their brand and condition in the acceptance-transfer act.
Currency of payments and contract form
- Legal validity: in Georgia, a rental agreement for up to 3 years has full legal force in simple written form. Notarization or registration at the Justice House is not required.
- Language of the contract: in case of legal disputes, the official version is in Georgian. It is optimal to use a bilingual contract (Georgian + Russian or English).
- Return currency: rent is most often fixed in US dollars (USD). If you transferred the deposit in dollars, it must be specified in the contract that it is returned in US dollars (or in lari at the bank's exchange rate on the day of return, not on the day of move-in).
What to do if the deposit is not returned
- Switch to calm correspondence: do not engage in emotional verbal disputes. Write a message with a reference to contract clauses, attach photos from move-in date, and meter calculations.
- Demand receipts and estimates: the owner has no right to withhold "at sight." Demand official receipts for the purchase of damaged items or an act from a technician.
- Remind about the tax authority (RS.ge): for landlords in Georgia, a special taxation regime applies — 5% of rental income upon registration with the Revenue Service. However, many private owners rent illegally and hide income. A polite reminder about the willingness to send the contract to the tax office and police in case of unlawful withholding usually prompts constructive dialogue.
Brief
- Distinguish concepts: "first and last month" — non-refundable rent payment, and insurance deposit — refundable pledge for property safety. Fix the exact status of the amount in the contract.
- Utility bills arrive with a two-week delay. Calculate expenses by meters on the day of departure or leave a symbolic deposit (100–250 GEL), taking the main deposit immediately.
- Early departure under a standard Georgian contract deprives you of the last month or deposit. Add a clause allowing departure with a 30-day notice.
- Natural wear of walls and furniture is the owner’s responsibility, not a reason to withhold the deposit.
- Verify the extract in the Public Registry (NAPR) by cadastral code before transferring money, and send photos of defects to the owner via messenger on the first day.