The Georgia real estate industry is at the forefront of raising the bar on the national stage following the passage of House Bill 399, legislation poised to bring significant changes not only to residential property management in the state, but the general approach to regulating the profession. The Georgia REALTORS® were proud to lead the charge on HB 399 as a critical step toward ensuring accountability and professionalism across our industry — while safeguarding property rights and enhancing consumer protections.

Strengthening property rights and limiting overreach

Section 1 of HB 399 is a reinforcement of long-standing, fundamental property rights, explicitly prohibiting local governments from maintaining a registry of rental properties or inspecting residential rental properties absent probable cause of a code violation. These prohibitions continue to protect property owners, managers and tenants from arbitrary inspections or unwarranted regulatory investigations while providing local code enforcement a mechanism to appropriately get in contact with the licensed property manager when there is a valid issue or potential code violation to be addressed.

Ensuring accountability for out-of-state owners

At the heart of HB 399 is its emphasis on expectations for out-of-state residential rental property owners in Section 2 of the bill. Under the new law, any out-of-state landlord of single-family or duplex rental properties must engage a Georgia licensed real estate broker to manage those properties. Moreover, if that broker resides outside Georgia, they are required to employ at least one Georgia resident who complies with licensure standards under Chapter 40 of Title 43, ensuring an in-state presence to handle tenant communications and local concerns.

Clarifying and modernizing exemptions to licensure

HB 399 makes significant adjustments to Georgia’s licensing exemptions — changes that reflect both the realities of modern property ownership and management and the need for consistent regulatory oversight. The bill adds sensible new exemptions for family members of owners and officers of LLCs managing their own property, acknowledging the practicalities of family-owned and small mom-and-pop business operations.

At the same time, it eliminates outdated exemptions that have too often been exploited. No longer can employees of property owners — whether residential or commercial — engage in management or sales activities without a license unless they are solely assisting with a prospective purchase for their full-time employer. Similarly, unlicensed owners of management companies whose principals hold a controlling interest in the properties they manage must now be licensed. These reforms will help ensure that all those providing professional real estate services in Georgia are subject to the same education, standards and accountability requirements established to ensure protection of the public interest and a fair playing field for brokers who have long adhered to the state’s high licensing standards.

What this means for Georgia’s real estate industry

HB 399 represents a significant win for responsible property owners, real estate professionals and consumers across the state. By tightening across-the-board licensing requirements, maintaining protections against local overreach and ensuring a reasonable threshold of accountability in residential and commercial property management, this legislation enhances the professionalism of our industry and helps maintain the integrity of Georgia’s real estate professionals.

We are proud to have played a role in shaping this legislation, advocating on behalf of our members to ensure that the final bill reflects the realities of Georgia’s dynamic real estate environment. Our work continues as we engage with state regulators, local governments and industry partners to support the effective implementation of HB 399 and provide our members with the resources and guidance they need to navigate these changes.

As always, the Georgia REALTORS® remains committed to promoting policies that strengthen our industry, protect property rights and support the communities we serve. We encourage all real estate professionals to familiarize themselves with HB 399’s provisions and reach out to our team with any questions about how this new law may affect their business operations.

Jeff Ledford is the external affairs officer for Georgia REALTORS®.