Legal Question in Landlord & Tenant Law in Georgia

commercial landlord/tenant with no signed lease

I own a commercial building where I have my business and also have a tenant who leases half of the facility. When the tenant came on board about 9 months ago, I sent him an e-mail discussing the terms of the lease and he agreed ot all terms - including a 36 month rental committment. He also paid a security deposit of 2 months rent.

I am ashamed to admit that I trusted this tenant (he has been long time colleague/friend) so I did not get a signed contract due to various transitional issues that we were working on. Unfortunately, we have been working soley on a handshake and a verbal agreement (excluding the unsigned e-mail document).

Due to various conflicts and disagreements, he has decided to move out.

My questions are: Do I need to return to him the security deposit? With his last month coming up where I am certain he is not going to pay his rent as we agreed, do I have the legal right to evict him with minimal, if any notice? Ultimately, my question is does a verbal agreement hold any water and what rights does he(tenant) or I (landlord) possess in this situation?


Asked on 8/26/08, 11:29 pm

1 Answer from Attorneys
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: commercial landlord/tenant with no signed lease

1. The return of the security deposit depends on whether you have sustained any damages, either physical to the property or monetary. Either way, you are required to either return the deposit or itemize expenditures within one month after the tenant moves out.

2. In order to evict someone, you will need to first demand the property back. If the tenant fails to pay rent, you can demand prompt return of possession of the property. Them if they do not voluntarily leave by that date, you may file a dispossessory (eviction) action in the magistrate court to remove them.

3. The general rule in Georgia is that a lease for more than a year has to be in writing to be enforceable. Thus, a verbal lease for more than a year would simply be a tenancy-at-will lease and not a term lease. However, you might make the argument that the lease was in writing in e-mail form as long as the tenant agreed to it via an e-mail he solely controls.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

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Answered on 8/27/08, 9:45 am


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