Your Georgia Rental Portfolio Just Got More Expensive — Here’s Why
New law. New rules. New costs. And if you ignore them? You could lose everything.
As of July 1, 2025, House Bill 399 (now Act 315) is in effect. If you own rental properties in Georgia—particularly single-family homes or duplexes—and you don’t live here, this law changes how you do business. Ignore it, and you could be out of compliance and out of luck.
This article will break it down:
– What GA HB 399 is
– Who it affects
– What it means for your portfolio
– And what you should do—now
What Is GA HB 399?
Signed into law on May 14, 2025, HB 399 requires out-of-state landlords who own residential rental properties in Georgia to hire a Georgia-licensed broker or Georgia-resident licensed property manager to oversee their rentals.
You can no longer self-manage your Georgia rentals from afar. The state wants a local, accountable person on file for every rental tenant and every code enforcement officer to contact.
Why Did Georgia Pass This Law?
In short: absentee landlords and Wall Street ownership were creating chaos in the housing market.
Over the last few years, Georgia’s real estate has attracted:
- Out-of-state investors
- LLCs with no local presence
- Institutional landlords buying homes by the hundreds
The result?
- Delayed repairs
- Code violations
- Tenants with no one to call
- Cities with no one to cite
HB 399 is the state’s answer. It’s about local accountability and renter protection. As Representative Mary Margaret Oliver, who introduced the bill, put it: “If you want to profit from Georgia real estate, you need to be present and responsible.”
📜 What Are the New Legal Requirements?
If you’re an out-of-state owner, here’s what you must do:
- Hire a Georgia-licensed broker or property manager
- If your broker is based out of state, they must employ a Georgia-resident licensed agent
- Applies to single-family homes and duplexes
- Provide tenants with that local manager’s contact info
- Be available to code enforcement or local government when needed
Noncompliance opens the door to legal risk, delays in evictions, and potentially costly enforcement actions.
Who Is Exempt?
The law includes limited exemptions:
- Family members managing for each other informally
- Officers of an LLC managing their own properties if licensed appropriately
But don’t get clever—these are not loopholes. If you’re running a business, even at a small scale, assume the law applies.
What This Means for Tenants
For renters, this is a win:
- Guaranteed local contact for repairs and emergencies
- Protection from absentee landlords
- Better access to code enforcement and accountability
Tenants must also provide their landlord’s Georgia manager’s contact info if asked by local officials.
What This Means for Landlords & Investors
If you’re an out-of-state investor with Georgia properties:
- Your DIY property management days are over
- You must retain local, licensed representation
- You must update tenant communications and leases
- You’ll likely face increased costs—management fees, compliance updates, etc.
For many investors, this could mean:
- Reworking your operating model
- Reevaluating your portfolio
- Possibly exiting the market if margins shrink
Institutional Investors: Big Adjustments Ahead
Large-scale investors, REITs, hedge funds, and iBuyers are directly in the crosshairs.
Options moving forward:
- Establish in-state offices
- Partner with Georgia-based brokerages
- Build out localized staffing and compliance systems
It’s a logistical headache, but also an opportunity to improve service, reduce tenant complaints, and avoid public backlash.
Small Investors & LLC Owners: Don’t Ignore This
Even if you own just one rental home in Georgia, you are likely subject to the law unless:
- You live in Georgia and manage the property yourself, or
- You meet narrow family or licensing exceptions
This means:
- Hiring a Georgia-based manager
- Restructuring your LLC
- Or reconsidering your long-term investment strategy
For Georgia Real Estate Agents & Brokers: This Is Your Moment
Agents: HB 399 is a business opportunity.
If you’re a Georgia-licensed broker or property manager:
- Expect a spike in demand from out-of-state owners
- Create clear service packages focused on compliance
- Build referral pipelines from agents in other states
- Offer bundled services (management, leasing, compliance, etc.)
If you’ve been thinking about launching a property management arm—now is the time.
Property Managers: Be Ready
You should expect:
- More onboarding requests
- More compliance questions
- More scrutiny from local officials
Update your:
- Website
- Services list
- Tenant communication systems
- Documentation tools (so you can prove compliance fast)
Your messaging should emphasize:
- Compliance with HB 399
- Local presence
- Fast, reliable tenant service
⚠️ What Happens If You Don’t Comply?
While HB 399 doesn’t list specific fines, here’s what can happen:
- Code enforcement citations
- Legal trouble in eviction or dispute cases
- Risk of violating real estate licensing laws
- Public complaints or lawsuits from tenants
Bottom line: noncompliance isn’t worth the risk.
Strategic Moves You Should Make Now
Out-of-State Investors:
- Audit your Georgia holdings
- Hire a local, licensed property manager
- Update leases and tenant contact information
- Adjust your budget for new management costs
Georgia Agents & Brokers:
- Market to out-of-state owners
- Verify your firm meets Georgia staffing requirements
- Offer compliance help and management packages
- Position yourself as a local expert in HB 399
Final Thoughts
House Bill 399 isn’t a temporary inconvenience—it’s a fundamental shift in how Georgia expects landlords to operate.
It’s about local accountability. Tenant protection. Professional standards.
If you’re already doing things the right way, this law won’t hurt you. But if you’ve been managing Georgia rentals from afar without proper support, now’s the time to make a change.
Work with trusted local pros. Get compliant. And turn this challenge into an opportunity to manage better—and grow smarter.
Need guidance? I help investors, agents, and property managers navigate Georgia’s real estate landscape every day. If you’re unsure how to respond to HB 399, let’s talk. There’s a right way to stay profitable, compliant, and respected in this new environment.
Written by Darin Hunter | Mortgage Professional |
