1202 Williamson Street, Suite A, Madison, WI 53703 | Rental Rights (608) 257-0006 | Administration (608) 257-0143 | Fax (608) 286-0804
If you live outside of the City of Madison, some of these rights do not apply.
Also available as a PDF or en español for easy printing.
State law defines a security deposit as "all of the money" a tenant pays to a landlord before signing a lease, including any prepaid rent above one month's rent. Deposits are kept as a guarantee the tenant will pay the rent and not damage the apartment.
Madison law prohibits landlords from charging more than one month's rent for a security deposit (MGO 32.07(3)).
If your security deposit was more than half of a month's rent, your landlord must pay simple interest from the time you pay the deposit until the time you move out (MGO 32.07(3)). The interest rate changes every year as follows:
The rates can also be found online at http:// www.wdfi.org/fi/banks. Look for the Notice of Interest Rate on Required Residential Mortgage Loan Escrow Accounts. You can also call the City of Madison Building Inspection Unit at (608) 266-4551 to find out the current rate. The interest rate at the time you signed your lease applies for the entire lease period. If your security deposit was half of one month's rent or less, your landlord does not need to pay interest.
Your landlord is required to give you a check-in form and must allow you at least seven days to fill it out. Make a copy of the completed check-in form for yourself and give the original to your landlord by the deadline.
Madison law states that landlords who fail to give tenants a check-in form forfeit rights to deduct from the deposit for cleaning or damages (MGO 32.07(6)(7)). If you do not receive a check-in form, make your own or get one from Tenant Resource Center (also available on our website). Make a copy and send it to your landlord soon after of moving in along with a letter stating that you provided your own form because of your landlord's failure to provide you with one.
When filling out the check-in form, be thorough. The landlord cannot charge you for any existing damages that you include on the check-in form. Note problems such as:
If you have a friend who isn't living with you, have them witness the conditions at move-in. Have them initial your check-in form or write a separate form about what they saw.
Carefully photograph the apartment when you move in, being especially careful to document all damage. Give one set of photos to your landlord soon after of moving in and keep the negatives or a second set for yourself.
If you have a camcorder, document the condition of the apartment, especially damaged areas.
Try to schedule a check-out appointment with your landlord. If your landlord agrees to do this, make sure you leave with a signed copy of the check-out form. If the landlord notes things are dirty or damaged, offer to clean or fix them.
If your landlord refuses to go through the apartment with you, complete your own check-out form and take pictures documenting the condition of the apartment. Consider having the same witness who was present for check-in help with the check-out.
If your landlord presents you with a check-out form that indicates damages that you or your guests did not cause, do not sign it. Instead, complete your own check-out form and keep a copy. You should also take pictures to prove the condition of the apartment.
Leave your forwarding address on the check-out form or mail it to the landlord. Keep copies of everything!
Landlords who fail to provide a check-out form similar to the check-in form forfeit their right to deduct for damages or cleaning (MGO 32.07(6)).
The landlord has 21 days after your lease ends to send you either the full security deposit or an itemized list of deductions (ATCP 134.06(2)(a), MGO 32.07(7)).
If you move out before the lease is over, return the keys to the landlord and write a letter stating which day you are moving. Give one copy to the landlord and keep one for yourself. The landlord will have to return the security deposit within 21 days after you "surrender the premises." You must notify the landlord in writing if you move out early, otherwise you will have to wait until the lease is over to get your security deposit back (ATCP 134.06(2)(b), MGO 32.07(7)).
If the landlord does not return the full deposit or a detailed list of deductions within 21 days after you move out, the landlord forfeits the right to any portion of the deposit and you can sue the landlord in small claims court for triple the amount of the deposit plus court costs and reasonable attorney fees (MGO 32.07(10)).
Your landlord can deduct for reasons other than those listed above if you initialed provisions on separate page titled "NONSTANDARD RENTAL PROVISIONS" when you signed your lease. This may include late fees, etc. (MGO 32.07(14)(f)).
Landlords may never deduct for "normal wear and tear" or for other losses that the tenant is not responsible for under the law even if the tenant signed a nonstandard rental provision authorizing these deductions (ATCP 134.06(3)(b) & (c), MGO 32.07(14)).
It is illegal to deduct for routine carpet cleaning from the security deposit-even if you signed a lease that states that you must pay for carpet cleaning. Such lease provisions are illegal (MGO 32.11(9)). The only exception is if you damaged the carpet beyond "normal wear and tear." If your landlord deducted money from your security deposit for routine carpet cleaning, inform your landlord in writing that it is illegal. If your deposit is not returned, file a complaint with Consumer Protection by calling (800) 422-7128 or online. You may also file a complaint with the City Attorney at (608) 266-4511. Be aware that the landlord may still pursue this in small claims court.
A tenant no longer has to wait to cash a check until the security deposit dispute is settled. Cashing a partial refund check is not considered accepting the amount as full, and it does not waive the tenant's rights to sue for the rest of the deposit (ATCP 134.06(2)(e), MGO 32.07(7)(d)).
The landlord is supposed to put all tenants' names on the check unless tenants indicate otherwise in writing (MGO 32.07(7)(c)). The check-out form must provide an obvious place for the tenant's forwarding address (MGO 32.07(5)(d)).
If the landlord violates one of the rules mentioned in this brochure, you may take the following actions:
You can easily file a complaint with the Department of Agriculture, Trade and Consumer Protection. The bureau keeps complaint records and will contact the landlord about the violation. To get a complaint form, call (800) 422-7128 or fill one out online.
After the deadline in your letter expires and the landlord doesn't respond, you may sue your landlord in small claims court for triple what was wrongfully withheld plus court costs and reasonable attorney fees (MGO 32.07(10)). You must go to your county small claims court, fill out a simple "summons and complaint" form and pay a $85 filing fee (in Dane County). The landlord may not contest your case, may settle, or may countersue you.
Please Note: This information is accurate for Wisconsin residents and property owners only.
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