Fees and Liquidated Damages
This article will discuss fees, liquidated damages, and other charges under Wisconsin tenant-landlord law.
Money Paid at the Time of Signing the Lease
When a tenant and landlord are signing the lease, the tenant is usually paying a substantial amount of money. (Note: This is different from the fees that may be charged as part of the rental application to a prospective tenant. The laws on earnest money deposits apply to fees charged before a lease is signed in addition to a credit check and background check.)
Read moreApplication Fees & Earnest Money
I'm lucky enough to be able to help teach the seminars, along with Brenda and Anders, and it's really a neat thing to do. We get to talk with people around the state, hear the questions, the concerns, the funny parts and the difficulties. It's nice. You should come.
But one of the difficulties of the seminars (and our jobs more generally here) is explaining a concept where the laws don't match the common practice. Brenda and I regularly rock-paper-scissors (it's a verb!) over who has to teach our section on Earnest Money, which isn't all that complicated, but infrequently followed in common practice. So, I'd like to explain how application fees work (where does all that money go when you put in an application?), what folks are supposed to do, and what they aren't, but keep in mind, everyone understands this differently, even though the law is on your side if you do it right. And you get a gold star.
You've been warned.
Read moreQuick and Dirty Guide to Renting in Madison
Don't Rent Early
Why Wait for Spring? Lots of Reasons
- Roommate conflicts. The earlier you sign a lease, the more time there is for a falling out with your future roommates. Remember, you'll be living with these people for an entire year, so make sure that you understand joint and several liability.
- Potential apartment problems. After living in your apartment for a while, you may find major repair problems, such as a bad heating system or a basement that floods in the springtime. If you renew early, you'll be stuck there for a second year. Check out our pages on repairs in Madison & Fitchburg or the rest of Wisconsin.
- Unknown future plans. You may find a great opportunity for studying abroad or an internship, but if you've already signed a lease, you might have to pay rent in Madison while you are living in another city.
- Lower rent. Historically, some landlords reduce rent prices as it gets closer to summer, and there will likely be apartments left un-rented in August, although in recent years the vacancy rates have been far below the national average.
- Once you sign a lease, you're obligated. You can't break a lease without consequences. There is no "3-day grace period," no medical excuse, no school transfer exception. Although the landlord must attempt to re-rent the apartment after you leave, they can charge you for all expenses (not including the cost of showing the apartment) incurred in doing so, plus the rent while the apartment is vacant. Subletting is an option, but you'll still be responsible for the apartment, and it can be hard to find sublessees.
Know Your Landlord and Apartment Before You Rent
Find a good landlord and a good apartment! Even if you think you aren't particular, you probably don't want to spend the winter without heat or a refrigerator, surrounded by mice, or with sewage in your basement.
- Current Renters. Stop by and talk to the people who currently live there; if they've had landlord or apartment problems, chances are they'll be glad to talk to you.
- Consumer Protection. See if any tenants have filed complaints against the landlord. This only takes a minute; just call the Department of Agriculture, Trade and Consumer Protection at (608) 244-4953.
- Building Inspector. Find out if previous tenants have reported repair problems by calling the Building Inspector at (608) 266-4551.
For more tips, see our page on Preparing to Rent and Moving In and Out in Madison.
Look at the Apartment
The following are some things to look for and questions to ask when viewing apartments. It's always better to check things out yourself whenever possible rather than asking, since the answer you get might not be accurate. Take notes so you won't forget anything.
- Are there laundry facilities? How much does laundry cost?
- Is any furniture included? Are the basics there (fridge, stove) and do they work?
- Is there hot water and good water pressure? Do the tub and sinks drain?
- Are ceilings or walls stained or cracked? This may indicate defective rain gutters, or a leaking roof or plumbing, which could cause mold or a collapse?
- Are there working smoke detectors in the building?
- Are there functioning deadbolt locks on the apartment doors and exterior doors?
- Are there storm windows and/or screens on the windows? Are there locks?
- Do the windows have blinds? If not, will the landlord provide them? (Get this in writing, of course!)
- Are windows secure or loose in the frame? Push very gently to check.
- Are there roaches? Open cabinets and immediately shine a flashlight, and look for roaches and eggs.
- Are there bed bugs? Check for rust colored stains in the seams of mattresses or upholstered furniture.
- Are there mice? Look for droppings in drawers, cabinets, and closets.
- Do they meet your needs for cable, phone, DSL, or satellite TV?
- Is there parking? How much does it cost? How is parking enforced?
- Who is responsible for cleaning the common areas/hallways, shoveling snow, and lawn care?
- Are any tenants staying? This shows the general satisfaction level with the building/landlord.
- Are pets allowed? Are there monthly pet fees?
- Does the furnace work? Even in summer, turn the thermostat up to see if it turns on.
- Which utilities are included (gas, electricity, water, cable, phone)?
- If gas or electric aren't included, call MG&E at 252-7222 for the average bill for the apartment (or see their online estimation tool here). It could be hundreds of dollars per month in the winter.
Get all promises to repair in writing. Verbal promises are unenforceable and mean almost nothing, and cosmetic repairs cannot be enforced by Building Inspection. If the landlord agrees to paint, replace carpet, re-glaze the tub, etc., this must be written into the lease, with a specific deadline (e.g. by move-in date). It's best to add that if repairs are not completed satisfactorily by that date, rent will be reduced until the repair is completed. Again, this must be in writing.
New laws make it clear that the landlord can make promises to repair in an email or text message. Wis. Stat. 704.10(3), 2017 Wis. Act 317, Sec. 42, Effective 4/18/18.
"Money Down" or Earnest Money
Many landlords request earnest money before they will review your application. If you put down earnest money, the landlord has 3 days to make a decision or return the money, unless you agree to a longer period of time, but it cannot exceed 21 days. ATCP 134.05(2)(a) Earnest money can be any amount and does not include the credit check fee and up to $25 for a background check on out-of-state applicants. The landlord can only charge actual costs, and it must be from a national company. MGO 32.02(2)(c) & 32.10(3), Wis. Stat. 66.0104(2)(b) Effective 12/21/11. What happens to the money depends on which of the following four situations you end up in:
- If you are accepted and you still want the apartment, the landlord must return the earnest money or apply it to your security deposit or first month's rent. ATCP 134.05(2)(b)
- If you are accepted but you don't want the apartment, the landlord has to mitigate the damages (try to re-rent the apartment) but can deduct for the costs (e.g. advertising). If this happens, make sure you ask for receipts for all expenses. You can end up losing all of the earnest money, so don't put anything down unless you are sure you want the apartment! ATCP 134.05(3)
- If you withdraw your application before you are accepted or denied, the landlord must return all of your earnest money by the end of the next business day. ATCP 134.05(2)(a)2.
- If your application is denied, the landlord must return all earnest money by the end of the next business day. ATCP 134.05(2)(a)1. Wis. Stat. 66.0104(2)(d)1.a., 2013 Wis. Act 76, Secs. 2 & 4 Effective 3/1/14.
If you feel you were discriminated against, call the Equal Opportunities Commission at (608) 266-4910 or the Fair Housing Center of Greater Madison toll-free at 877-647-FAIR.
Read the Lease
If you have any questions about your lease, bring it to our office. We can help you understand it and find possible illegal provisions. The following is a list of some common things to watch out for in a lease:
- The amount of rent, apartment address, or dates of occupancy are not filled in. If these aren't on the lease, your landlord could try to give you a different apartment, raise the rent, or terminate your tenancy with only 28 days' notice.
- Set cleaning fees. Most court commissioners and judges will want to see proof of costs and usually landlords must provide receipts as proof of any cleaning costs if you go to court. Pre-set fees are a way for them to try to avoid this and potentially overcharge you. Try to strike these fees out of the lease.
- Fees for carpet cleaning or painting. Landlords can't deduct from your security deposit for routine carpet cleaning or painting unless the damage is beyond normal wear and tear. They also cannot require that you pay for routine carpet cleaning at the end of your lease period.
- Responsibility for repairs is placed on you. This is illegal. The landlord is responsible for repairs (Madison & Fitchburg) of the structure and supplied amenities. They may only require you to pay if damages were caused by you or your guest. If your lease contains a clause like this, you may be able to end the lease without penalty.
- "Landlord may add or change rules during tenancy." In this case, the landlord may try to change the rules for their benefit. Suddenly you might not be allowed to have porch furniture or do laundry after 8pm. Get this removed from the lease. If you're presented with a rule change during the lease, you don't have to sign it. The landlord cannot unilaterally change the rules in the lease.
- Separate addenda. Anything you don't sign won't bind. Be careful about these addenda if you do sign them. They often contain provisions which are to the landlord's advantage. Typically, anything in a "NONSTANDARD RENTAL PROVISIONS" form waives your rights as a tenant in Wisconsin.
Usually, an illegal rule in a lease will be unenforceable while the rest of the lease is still valid. However, if your lease has any of the following provisions, you can automatically break your lease with no further obligations to pay rent. These provisions make your lease "void and unenforceable." Wis. Stat. 704.44 Previously, case law was most clear about the provisions regarding legal fees. Recent changes to state law and the Consumer Protection regulations make it more clear that the following provisions make a lease void and unenforceable:
- Allowing a landlord to increase rent, decrease services, bring an action for eviction, refuse to renew, or to threaten any of these actions because a tenant has contacted law enforcement or emergency services for their safety. Wis. Stat. 704.44(1m), ATCP 134.08(1), CR 14-038, Sec. 11, Effective 11/1/15.
- Evicting in any other way besides by state law (see Eviction). Wis. Stat. 704.44(2m), 2011 Wis. Act 143, Sec. 26, Effective 3/31/12 and ATCP 134.08(2), CR 14-038, Sec. 11, Effective 11/1/15.
- Speeding up rent payments for breaking a rule in the lease. Wis. Stat. 704.44(3m), 2011 Wis. Act 143, Sec. 28, Effective 3/31/12 and ATCP 134.08(3), CR 14-038, Sec. 11, Effective 11/1/15.
- Waives the landlord's duty to mitigate damages under Wis. Stat. 704.29 if the tenant vacates early. Wis. Stat. 704.44(3m), 2011 Wis. Act 143, Sec. 28, Effective 3/31/12 and ATCP 134.08(3), CR 14-038, Sec. 11, Effective 11/1/15.
- Requiring tenant to pay landlord's attorney's fees or costs for defending their rights, unless the court awards them. Wis. Stat. 704.44(4m), 2011 Wis. Act 143, Sec. 30, Effective 3/31/12 and ATCP 134.08(4), CR 14-038, Sec. 11, Effective 11/1/15.
- Allowing the landlord to "confess judgment" or speak for you in court about any action or inaction related to the rental agreement. Wis. Stat. 704.44(5m), 2011 Wis. Act 143, Sec. 32, Effective 3/31/12 and ATCP 134.08(5), CR 14-038, Sec. 11, Effective 11/1/15.
- Excusing the landlord for liability for property damage or personal injury due to negligent acts or omissions by the landlord. Wis. Stat. 704.44(6), 2011 Wis. Act 143, Sec. 33, Effective 3/31/12 and ATCP 134.08(6), CR 14-038, Sec. 11, Effective 11/1/15.
- Imposing liability on the tenant for personal injury arising from causes beyond their control, property damage caused by natural disasters, or by persons other than the tenant or their guests. Wis. Stat. 704.44(7), 2011 Wis. Act 143, Sec. 34, Effective 3/31/12 and ATCP 134.08(7), CR 14-038, Sec. 11, Effective 11/1/15.
- Waiving responsibility for the landlord to provide premises in habitable condition or maintain the property. Wis. Stat. 704.44(8), 2011 Wis. Act 143, Sec. 35, Effective 3/31/12 and ATCP 134.08(8), CR 14-038, Sec. 11, Effective 11/1/15.
- Allows the landlord to terminate the tenancy of a tenant based solely on the commission of a crime in or on the rental property, if the tenant, or someone who lawfully resides with the tenant, is the victim of that crime, as defined in Wis. Stat. 704.44(9) & 950.02(4), 2013 Wis. Act 76, Sec. 25, Effective for leases entered into or renewed on or after 3/1/14 and ATCP 134.08(3), CR 14-038, Sec. 11, Effective 11/1/15.
- Allows the landlord to terminate the tenancy of a tenant for a crime committed in relation to the rental property and the rental agreement does not include the notice required under Wis. Stat. 704.14. See Notice of Domestic Abuse Protections Wis. Stat. 704.44(10), 2013 Wis. Act 76, Sec. 26, Effective for leases entered into or renewed on or after 3/1/14 and ATCP 134.08(3), CR 14-038, Sec. 11, Effective 11/1/15.
Summary
- Read the lease carefully, and watch out for the above mentioned clauses. (Learn more about Reading Your Lease)
- Describe needed repairs (Madison & Fitchburg) in writing with a set deadline to repair before you sign the lease.
- Bring your lease and any addenda to the Tenant Resource Center so we can check it over.
- Keep a copy of the lease for your own records immediately after you've signed it. ATCP 134.03(1)
Roommate Agreements
Many tenants, even close friends, end up having conflicts. To help avoid disputes about partners moving in, cleaning, subletting, pets, noise, smoking, etc., you and your roommates should seriously consider filling out a roommate agreement. In the case of disagreements over who owes what for bills and rent, a roommate agreement is the best way to show who is responsible if you end up in court.
For a copy of a roommate agreement, stop by our office or click here.
Moving In
Check-In Forms
When you move in, your landlord is required to give you a check-in sheet and let you know you have seven days to inform them of any problems. ATCP 134.06(1)(a)1, Wis. Stat. 704.08, 2011 Wis. Act 143, Sec. 18, Effective 3/31/12.
Landlords can send all documents and forms related to the security deposit in an email or text message. Wis. Stat. 704.10(2), 2017 Wis. Act 317, Sec. 42, Effective 4/18/18. If you do not receive a check-in form, make your own or use the Tenant Resource Center's Sample. Make a copy of the complete document for yourself and send the original to your landlord within the deadline they give you (must be at least 7 days). If the landlord doesn't follow check-in procedures, it will be difficult for them to prove the initial condition of the apartment when they try to deduct from your security deposit. Tenants should still fill in their own check-in sheets and take photos or video of the initial condition of the apartment.
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.
Dirty Apartment
If the apartment is dirty, either don't clean it and notify your landlord immediately to have it cleaned or negotiate to have the landlord reimburse you for cleaning. Make sure you get a written agreement including a wage per hour or discount in rent.
Common Problems During Tenancy
Repairs and Pests
If something needs fixing, call your landlord. If your landlord doesn't respond and it's an emergency such as no heat, water, or electricity, call the Building Inspector at (608) 266-4551. If it isn't urgent, write a letter and give a deadline for completion. Keep a copy for your records to document your actions. If your landlord still doesn't fix the problem, call the Building Inspector. The inspector will look at your apartment and order your landlord to fix any code violations. If your landlord does not complete the work order by a specified deadline, you could be eligible for rent abatement. Do not start withholding rent on your own or you may be evicted. Wait for notice from the Building Inspector's office and complete the rent abatement process before you deduct from your rent.
2013 Wis. Act 76 includes language about pest control. The language does not make the tenant automatically liable for pest control, but it says that they are responsible if the pests are due to acts or inactions of the tenant. This provision goes into effect for tenancies in effect on 3/1/14. Wis. Stat. 704.07(3)(a), 2013 Wis. Act 76, Sec. 12 Effective 3/1/14. Whenever repairs are needed because of a tenant's action or inaction, the landlord can charge a "reasonable hourly rate" for their time, materials, and time spent purchasing or providing materials, supervising their staff or agents, and hiring a third-party contractor. Wis. Stat. 704.07(3)(a), 2017 Wis. Act 317, Secs. 37 & 38, Effective 4/18/18.
Landlord Entry
There are three legal reasons to enter which all require advanced notice: repairs, inspections, and showings (for re-rental or sale.) Emergencies (like a burst pipe) don't require advanced notice if there is a threat of harm to the property. Now, unless the lease says otherwise, Madison landlords only have to give a 12 hour notice to enter for repairs and inspections. MGO 32.05(1)(d), Wis. Stat. 66.0104(2)(d)1., 2013 Wis. Act 76, Sec. 2 Effective 3/1/14. They only have to give a 12 hour notice to enter for showings for re-rentals or sales. MGO 32.05(1)(e),Wis. Stat. 66.0104(2)(a)4. Effective 12/21/11.
If your landlord enters without notice, you should write them a letter citing the dates of illegal entry as well as the law prohibiting it (MGO 32.05(1)(d) or ATCP 134.09(2)). If it continues call (608) 224-4953 to file a complaint with Consumer Protection, which will send a written warning to the landlord. You can also call the police non-emergency number if you're home when the landlord tries to enter illegally: (608) 255-2345. They could be ticketed for up to $600.
Retaliation
It is unlawful for any landlord to retaliate against a tenant who exercises their rights. A landlord cannot issue an eviction notice, increase rent, decrease services, or threaten not to rent or renew a lease just because you asked for repairs or called the Building Inspector. If you think your landlord is retaliating, contact the Tenant Resource Center for more information.
NOTE: It's important that you keep a log of all the dates and details of any problems such as repairs, harassment, or landlord entry. This way, if you ever end up in court or need to cite dates, you'll have clear documentation and won't have to try to remember dates and times.
Security Deposits
A security deposit is the money you give the landlord in case the apartment is damaged during your tenancy or to cover unpaid rent.
The landlord must return your security deposit or a written, itemized list of deductions within 21 days from the date your lease ends or the date you notify the landlord in writing that you have moved out. As of 3/31/12, if you moved out early, they can return it 21 days from the date that someone new enters into a lease or your lease ends, whichever is sooner. This provision also goes into effect for eviction actions started after 3/1/14. Wis. Stats. 704.28(4)(b) & (c), 2013 Wis. Act 76, Secs. 21, 22 & 23 If they don't, you could sue for up to double damages plus court costs and attorney's fees. MGO 32.07(10), Wis. Stat. 66.0104(2)(b) If your landlord does deduct from your security deposit, ask for receipts of all the deductions to ensure that they are deducting fairly. You may also request a copy of the deductions made from the previous tenants' security deposits.
Finding Housing
This page contains everything you need to know about your rights when Finding Housing in Wisconsin. Looking for something specific? Use the links below to navigate to specific information found on this page and elsewhere on our website.
Choosing the Right Landlord
It is expected that landlords will check the background of prospective tenants. It is equally important for tenants to check out the landlord. This research can be quick and usually it's anonymous. Even if you don't have many options for where to rent, you will go in with very important information which can save you lots of money, time, and stress.
Check with Current Tenants
If you only check one source, it should be the current tenants. Visit without the landlord and explain that you are considering renting and that you would like a little information about the landlord and building. Ask questions such as:
- Does the landlord respond quickly when you report repair/maintenance problems?
- Does the landlord keep common areas (yards, laundry rooms, hallways) in good condition?
- Are there major repair problems in the building?
- Does the heat work and do the appliances work properly?
- Before you moved in, were you promised improvements (such as new carpet)? Was this done? Was it on time?
- Are there pests (such as cockroaches, bed bugs, or mice)?
- Are there noise or safety problems in the building or the neighborhood?
- Is proper notice (usually 12 hours) given before the landlord enters the unit?
- What happens if you pay the rent late?
- Are there late fees?
- Is the landlord pleasant and professional?
- Why is the current tenant leaving?
If possible, talk to at least two current tenants. Bad reports are a strong reason to keep looking, or to be extra careful about preventing and documenting problems if you move in anyway (take photos before moving in, keep things in writing about repairs (texts/emails), etc.) .
Small Claims Court Records
You can easily find any court cases your landlord might have in Wisconsin through CCAP (Consolidated Court Automation Programs). Make sure you check the name of the landlord or management company that is listed for the address on your city assessor's website (for City of Madison residents, click here) or Access Dane.
CCAP On the Internet
The case files will tell who is suing whom, for what, and who won the case. Click on "case details" or "court record events" for details. While CCAP online can be helpful, it may not say why someone was evicted. If a case has a “stipulated dismissal”, the landlord and tenant worked out an agreement. A default judgment usually means one side did not show up, usually the defendant. A judgement of eviction usually only comes after a hearing with a judge, but not always.
CCAP at the Courthouse
For more information, go to the county courthouse in person and ask the clerk to pull files for all cases your potential landlord has been involved in during the last few years. Have the case numbers from CCAP ready to avoid possible fees for looking them up. More information on CCAP is here.
When you check the court records at the courthouse computer (records room), you will find more details about why people are evicted. Look at the section entitled "complaint" to learn why tenants were evicted, but consider the number of apartments the landlord/management company controls. If you find that the landlord has a disproportionately high number of tenant/landlord cases, or if you are surprised by the reasons tenants are suing them, then it may be wise to look for another apartment, or be extra careful renting from them.
NOTE: Landlords will also use CCAP to look up your record of evictions, being sued for money, etc. As of 4/18/18, the laws make it much easier for tenants to remove eviction cases from their CCAP record (as well as removing all other small claims court cases, such as money cases). Wis. Stat. 758.20(2)(a), 2017 Wis. Act 317, Sec. 46, Effective 4/18/18. Click here for more information about tenant records and CCAP.
Consumer Protection
Contact the Department of Agriculture, Trade and Consumer Protection (online or at 800-422-7128) to ask if any complaints have been filed against the landlord.
- You can find out the number of complaints, the dates they were filed, and how they were resolved.
- Again, consider how many apartments the landlord owns or manages.
- You can also go to the agency and see the actual complaints.
Building Inspection Records
Many towns and cities in Wisconsin have building inspectors.
- Most inspectors keep written records every time they inspect an apartment and these records are public.
- You can ask to see the records for addresses you are considering.
- Focus on recent records, such as reports within the past five years.
- The records should show that the inspector has visited the apartment and what repairs the landlord was ordered to make.
- Check to see how soon the repairs were finished.
- Also, check to make sure it is still the same landlord who owns the building.
- Remember, retaliation against tenants who contact inspectors is prohibited by statute and by ATCP 134.09(5). Buildings that have been inspected several times recently are probably not being maintained well. You may want to avoid landlords who do not make repairs even after being ordered to do so by the building inspector.
Zoning Records
When you check inspection records, it is a good idea to check zoning:
- Give the zoning staff the address of the apartment and ask how the building is zoned.
- You may find that no more than two or three unrelated persons can live in the building, which may come as a shock if you were planning to move in with some friends.
- You might find out that your future "three-bedroom" apartment only has two legal bedrooms.
- In the City of Madison, if a co-tenant is forced to vacate by an inspector because of zoning or occupancy limits that were not disclosed to the tenants, they may be able to break the lease without any consequences. MGO 32.08(2)(d) Call your local building inspector or the Tenant Resource Center for more information.
Police Records
Police Reports and Police Contacts
- Call your local police department and ask whether you can get a printout of all police calls to your prospective apartment building.
- If you want information specific to one person (landlord) you should ask for police contacts, list the address and date of birth if you have one.
- Most police departments have a records office, Madison’s is here. You may have to go to the police department in person and/or pay a small fee.
Neighborhood Officer
- There also may be a police officer assigned to the neighborhood you want to move into.
- Talk to that officer about the neighborhood/your landlord.
- You should also talk to neighbors about their relationship with the police in the neighborhood.
- It might be a good idea to stay away from any building that has a long record of police calls; however, some neighborhoods have high police vigilance, which will contribute to the number of police calls for properties within those neighborhoods.
- If the landlord or manager has a criminal record, you may want to consider that this person will have a key to your home. Just as the landlord probably looked up your conviction record in Wisconsin on CCAP, you might want to do the same for your landlord or property manager. More information on CCAP is available here.
What the Landlord Must Disclose
Landlords have to give applicants certain information prior to accepting any money, so tenants can decide if they are interested. Landlords are also required to write certain important information in the leases.
Tenants' Copies of Agreements
Tenants must be allowed to inspect copies of all written agreements and rules before they pay any money to the landlord or make any rental agreement. When a tenant signs a lease, the landlord must give them a copy of the signed lease. If you request one from the landlord and they do not respond, you may make a complaint to Consumer Protection. ATCP 134.03(1) Here are some things to think about when reading your lease.
NOTE: With the passage of new laws, it has become extremely important that you read your lease before signing. Just because a landlord puts something in the lease does not mean it is legal. In fact, if the landlord puts certain illegal clauses in a lease, it could make the whole lease invalid. It will also tell you what they can do with your property when you move out, or if you are evicted. See Ending a Lease and Property Left Behind for more information. If you have any questions, contact the Tenant Resource Center before signing and we can help you understand the lease and identify possible problems.
Disclosure of Owner/Manager Information
Landlords must give the following information to tenants in writing before or when they enter into a lease:
- Name and address of the person who collects the rent
- Name of the person who manages the building
- Name and address of the repair contact person. The tenant must be able to contact that person easily.
- The name of the owner or other person authorized to accept legal papers and other notices (must be in Wisconsin, and must be a street address, not a post office box). ATCP 134.04(1)
Landlords who live in and manage buildings with four or fewer units do not have to provide owner/manager information in writing. (It is assumed they will manage the building and accept legal papers.) ATCP 134.04(1)(c) Tenants must be notified of any change in the name or the address of the owner/manager, the maintenance contact person, and the person who accepts legal papers within 10 days of a change, if tenants live in a building with more than 4 units, or if the owner does not live on site. ATCP 134.04(1)(b) In Madison, landlords must also disclose the phone number for each person above. MGO 32.08(1), Wis. Stat. 66.0104(2)(d)1, 2013 Wis. Act 76, Sec. 2
New laws make it clear that the landlord can give the tenant copies of the rental agreement and any related documents in an e-mail or text message. Wis. Stats. 704.10(2) & (3), 2017 Wis. Act 317, Sec. 42, Effective 4/18/18.
If the Landlord Fails to Provide This Information
- Contact the city assessor/treasurer or county register of deeds and find out what information they have available.
- Look up that person's office or home phone number in case you need to reach the landlord in an emergency.
- Send any rent or repair requests to the address of the owner, along with a request for any information not disclosed in the rental agreement, and keep dated copies of all your written requests.
- Mail the rent payment at the post office and get a "certificate of mailing" (cheaper and faster than registered mail) or "delivery verification" to verify delivery. If there are no more problems, you may not need future receipts, but keep copies of each payment, the letters you send, and any receipts.
- Tenants may also file a complaint with Consumer Protection (DATCP online or at 800-422-7128).
Utility Disclosure Information
Before making a rental agreement or accepting any money from you, the landlord must tell you what utilities you have to pay for in addition to the rent. Landlords must also tell you if your bills include any utilities in common areas of the apartment building including hallways, yards, parking lots, and laundry rooms. If the apartments do not have separate utility meters, the landlord must disclose this, as well as how they determine how much each renter will pay. ATCP 134.04(3) If the landlord informs the tenant that the tenant will be paying for a shared meter, the tenant could negotiate a fairer arrangement (such as paying a portion equal to the number of people in each unit). Have the landlord sign the agreement and make sure to keep a copy for yourself.
If the Utility Information Was Not Disclosed
Call the local utility company for help. A service person may visit your home to see what services you should pay for.
If you find out you are paying for someone else's utilities, ask the utility company for a copy of previous bills and estimate the amount the landlord should refund to you. The utility company can help with estimates. If you live in the MG&E service area in Dane County you can find some information about estimates here.
Tenants who find out they have a shared meter which was not disclosed to them should write a letter to the landlord requesting a refund and give the landlord a deadline (ten days to two weeks). If the landlord does not respond, file a complaint with Consumer Protection (DATCP online or 800-422-7128).
If a tenant and their landlord are still unable to come to an agreement, mediation may be helpful. Contact the Housing Mediation Service in Dane County or the Wisconsin Association of Mediators outside of Dane County. If the landlord does not comply, the tenant may sue in Small Claims Court for mandatory double damages plus court costs and reasonable attorney's fees. Wis. Stat. 100.20(5)
Disclosure of Building Code Violations
Before entering into a rental agreement or accepting earnest money, the landlord must tell the tenant about documented, uncorrected building code violations that they have actual knowledge of and which are a significant threat to the prospective tenant's health or safety. ATCP 134.04(2)(a), Wis. Stat. 66.0104(2)(d)1, 2013 Wis. Act 76, Sec. 2, Effective 3/31/12 and 11/1/15.
Before entering into a rental agreement or accepting earnest money, the landlord must also tell the tenant about any conditions affecting habitability which the landlord would know about, or could have known about based on a reasonable inspection. These include any lack of: hot or cold running water, safe electrical system, sewage disposal, heating systems unable to reach 67°F in all living areas in all seasons, and all other likely health or safety hazards. ATCP 134.04(2)(b), MGO 32.08(2)(a), FO 72-108(2)a
In the City of Madison the landlord must also disclose the tenant's right to abate rent (reduce rent payments to enforce the completion of inspector-mandated repairs), off-street parking requirements, and occupancy standards (how many people can live in an apartment). Violations of Madison's disclosure requirements can carry a fine. If a tenant has repair problems that the landlord refuses to fix, call the building inspector. In Madison, call the City of Madison Building Inspector at 608-266-4551.
Promises to Repair
When a landlord promises to make repairs before you sign your lease/move in, they must put these promises in writing. Consumer Protection can help you if they are not completed on time. For more information, see Repairs (Madison & Fitchburg or Wisconsin) or contact Consumer Protection (DATCP online or at 800-422-7128).
New laws make it clear that the landlord can make promises to repair in an email or text message. Wis. Stat. 704.10(3), 2017 Wis. Act 317, Sec. 42, Effective 4/18/18.
Lead Paint Requirements
According to Housing and Urban Development (HUD), a landlord must disclose that a dwelling built or remodeled before 1978 may contain lead paint, and provide the tenant with a lead hazard information pamphlet. 42 U.S. Code § 4852d . For enforcement, call HUD at (414) 297-1493 or the Environmental Protection Agency (EPA). For more information on lead paint, visit the HUD website, or see our blog post on lead paint.
Safe Housing Protections
The following language (a summary of the Safe Housing Act) must be provided in every lease or in an addendum to the lease entered into or renewed after 3/1/14: (Wis. Stat. 704.14, 2013 Wis. Act 76, Sec.14)
“NOTICE OF DOMESTIC ABUSE PROTECTIONS
(1) As provided in section 106.50 (5m)(dm) of the Wisconsin statutes, a tenant has a defense to an eviction action if the tenant can prove that the landlord knew, or should have known, the tenant is a victim of domestic abuse, sexual assault, or stalking and that the eviction action is based on conduct related to domestic abuse, sexual assault, or stalking committed by either of the following:
(a) A person who was not the tenant's invited guest.
(b) A person who was the tenant's invited guest, but the tenant has done either of the following:
- Sought an injunction barring the person from the premises.
- Provided a written statement to the landlord stating that the person will no longer be an invited guest of the tenant and the tenant has not subsequently invited the person to be the tenant's guest.
(2) A tenant who is a victim of domestic abuse, sexual assault, or stalking may have the right to terminate the rental agreement in certain limited situations, as provided in section 704.16 of the Wisconsin statutes. If the tenant has safety concerns, the tenant should contact a local victim service provider or law enforcement agency.
(3) A tenant is advised that this notice is only a summary of the tenant's rights and the specific language of the statutes governs in all instances.”
Note: If there is a clause in the lease prohibiting crime, and this language, quoted above, is not in the lease, then the lease is void and unenforceable. Wis. Stat. 704.44(10) For more information, see our Ending Your Lease page.
Sex Offenders
If a tenant requests information about sex offenders in writing, the landlord should inform them to get information from the sex offender registry or the Department of Corrections. While landlords are not obligated to keep this information themselves, landlords are obligated to disclose any "actual knowledge" they have about a specific person, IF a tenant asks for it. They are not liable for any particular disclosure if they refer a tenant to obtain information about the sex offender registry and persons registered with the registry by contacting the Department of Corrections, with appropriate contact information. Wis. Stat. 704.50
Earnest Money
After disclosing the required information (see previous sections) landlords are allowed to accept "earnest money," sometimes called an application fee, money down, or "hold" money. Earnest money includes ALL money which the tenant pays to the landlord before they sign a lease, except for up to $25 for the actual cost of a credit check) and up to $25 for a background check for tenants applying from out of state. ATCP 134.02(3), Wis. Stat. 704.085(2), 2017 Wis. Act 317, Sec. 41, Effective. 4/18/18.
Earnest money is refundable except for the actual cost of a credit check (credit bureaus charge about $8 - 12 for a report) and a background check for out-of-state applicants. Tenants can avoid the credit check fee (but not the background check fee) if they provide their own copy of a credit report less than 30 days old. City of Madison tenants cannot be required to pay the cost of a credit check. MGO 32.02(2)(c) & 32.10(3), Wis. Stat. 66.0104(2)(b), ATCP 134.05(4) For information about free credit reports see Credit Reports.
NOTE: The regulations in ATCP 134 which govern the return of earnest money have not been updated yet for the new law allowing the landlord to charge out-of-state applicants for background checks. However, 2011 Wis. Act 143 says that ATCP cannot conflict with laws in Wis. Stat. 704, such as this one.
Here are the three things that a landlord can do with the earnest money:
- If the landlord accepts you as a tenant and you sign a lease, the landlord must either return the earnest money, or apply it to the security deposit or your first month's rent. ATCP 134.05(2)(b)
- If your application is denied, or if you withdraw the application before being accepted/denied (which you should always do in writing), the landlord must return the earnest money by the end of the next business day (unless you gave written permission for them to retain it for up to 21 days). ATCP 134.05(2)(a)3.
- If you are accepted but don't want the apartment, the landlord can deduct for the actual costs of re-renting the apartment (for example, advertising) but they can't charge for their time spent showing or re-renting the apartment. They must return the rest of the earnest money to you within three business days (unless you gave written permission to retain it for up to 21 days). ATCP 134.05
If your landlord won't return your earnest money, you can file a complaint with Consumer Protection (DATCP online or at 800-422-7128) and/or sue in small claims court for double what they owe plus court costs and reasonable attorney's fees. Sometimes writing a letter threatening to do those things if the landlord won't return it by a certain deadline can quickly resolve the issue.
Still confused about earnest money? Read our blog post about it!
For more information on what to do when moving into an apartment in the City of Madison, see Moving Out of One Apartment Into Another.
Do you still have more questions about Finding Housing? If you can't find the answers you are looking for on our website, you may want to speak with a Housing Counselor or other staff at Tenant Resource Center. See our hours and locations here!
Security Deposits
This page contains everything you need to know about security deposits in Wisconsin. Looking for something specific? Use the links below to navigate to information found on this page and elsewhere on our website.
What Is a Security Deposit?
A security deposit is an upfront deposit that most landlords require tenants to pay before they move into a rental unit. The law defines it as “the total of all payments and deposits given by a tenant to the landlord as security for the performance of the tenant’s obligations, and includes all rent payments in excess of 1 month’s prepaid rent.” ATCP 134.02(11).
Landlords hold security deposits as a guarantee that tenants will pay their bills and keep their rental unit in good condition. When a tenant moves out, a landlord may deduct from the security deposit unpaid rent, bills, costs of repairs, or other fees. The law requires landlords to follow certain timelines for making these deductions and limits the types of deductions that can be charged against a security deposit.
Do Security Deposits Include Fees and Prepaid Rent?
A security deposit is the “total of all payments and deposits” given as security and “includes all rent payments in excess of 1 month’s prepaid rent.” This includes pet deposits, key deposits, furniture deposits, and prepaid rent (e.g. the last month’s rent). ATCP 134.06. None of these fees can be automatically non-refundable deposits under Wisconsin law.
How Much Can a Landlord Charge for a Security Deposit?
Wisconsin law does not place a limit on the amount a landlord can charge to a tenant for a security deposit, as long as it is not charged in a discriminatory manner. One exception to this general rule is that a security deposit for a mobile or manufactured home lot cannot exceed 2 months’ rent or $750, whichever is less. ATCP 125.04(1)(b).
Is a Receipt Required for a Security Deposit?
Yes. Under ATCP 134.03(2), the landlord must provide a written receipt immediately after receiving a security deposit. The receipt must include the amount and the purpose (e.g. to cover the security deposit). The only time a receipt is not required is when the tenant pays with a check, a note is included on the check that it is for a security deposit, and the tenant does not ask for a receipt.
What is Earnest Money? Is it the same thing as a Security Deposit?
An earnest money deposit is an amount paid by a tenant for the option to enter into a rental agreement in the future. It is usually paid with the rental application, and is often called an "application fee." More information on Earnest Money and Application Fees can be found here.
Earnest Money is not the same as a security deposit. If the landlord approves the application and the tenant enters into the rental agreement, the landlord must refund the earnest money deposit, or apply it to rent or the security deposit. ATCP 134.02(3). A landlord may not accept an earnest money deposit or security deposit from a rental applicant until the landlord identifies to the applicant the dwelling unit or units for which that applicant is being considered for tenancy. ATCP 134.05(1)
Is the Check-In Sheet Important?
Yes! Under ATCP 134.06(1), before the landlord can accept the security deposit (or apply earnest money to a security deposit), the landlord must notify the tenant in writing that they have 7 days after moving in to do either or both of the following:
- Inspect the unit and notify the landlord of any existing damages.
- Request from the landlord a list of defects or damages that the landlord charged against the previous tenant’s security deposit.
The landlord generally will give a tenant a check-in sheet to use for the inspection. But a tenant can make their own or use the Tenant Resource Center’s sample. Problems such as the following should be included in the check-in sheet:
- Stained carpets or damaged floors
- Cracked windows
- Torn or missing screens
- Nail holes, cracked paint, peeling wallpaper
- Dirty conditions, fixtures, and appliances
- Stained walls and ceilings
- Plumbing, sinks, bathtubs, and tiles that are worn, dirty, mildewed, or not working properly
- Missing light bulbs or glass light covers
- Electrical outlets or other items that do not work (light switches, stove burners, oven coils, etc.)
- Countertops that are stained, scratched, or damaged
Tenants should consider taking pictures or videos of the unit, with a date stamp, when they move in to show any damages or defects documented on the check-in sheet. A tenant cannot be charged for pre-existing damages in the unit. Tenants should keep a copy of the completed check-in form.
If a tenant requests from the landlord the deductions from the previous tenant’s security deposit, the landlord must provide a list of those deductions within 30 days or 7 days after notifying the previous tenant of the deductions, whichever is later. ATCP 134.06(1)(b). The landlord is not required to give the current tenant identifying information about the previous tenant or the amounts withheld.
Should Tenants Complete a Check-Out Sheet Too?
Yes. Tenants should try to schedule a check-out appointment with the landlord when they move out. If the landlord agrees to do this, tenants should leave with a signed copy of a check-out sheet. If a landlord does not have their own form, tenants can use TRC’s sample check-out form. If the landlord notes things that are dirty or damaged, the tenant can offer to clean or fix them before moving out to try to avoid getting charged for it.
If the landlord does not go through the apartment with the tenant, tenants should complete their own check-out form and take pictures documenting the condition of the apartment, including places the tenant cleaned or fixed. It is also important to date the pictures.
It is very important that tenants leave their forwarding or new address with the landlord. If the tenant completes a check-out form, the new address can be included on that form. Landlords are required to deliver or mail the security deposit to the tenant’s “last known address.” If a tenant does not provide a new address, their last known address is the home they just moved out of.
The tenant should keep a copy of the check-out form.
What Can a Landlord Deduct from a Security Deposit?
The standard charges that can be deducted from a security deposit are listed in ATCP 134.06(3)(a) and Wis. Stat. 704.28(1):
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Tenant damage, waste, or neglect of the premises
- This does not include normal wear and tear, or damages that are not reasonably the responsibility of the tenant
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Unpaid rent
- However, the landlord is required to mitigate their damages by taking reasonable steps to rerent the unit. Wis. Stat. 704.29. For example: A tenant paying $1000/month moves out 3 months before their lease term ends. The landlord pays $100 to advertise for the unit and rerents it 1 month later. The landlord can deduct from the security deposit $1,100 ($100 for the advertising costs plus $1000 lost rent) plus any other lawful charges. The landlord cannot charge the previous tenant the other 2 months of rent.
- Unpaid utilities owed under the rental agreement that are paid by the landlord if not covered by the tenant but not included in the rent
- Unpaid utilities provided by a government-owned utility if the landlord is responsible for the charges when the tenant does not pay
- Unpaid municipal permit fees assessed against the tenant by a local unit of government if the landlord is responsible for the charges when the tenant does not pay
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Any other payment listed in a lawful nonstandard rental provision
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Landlords can deduct for other charges only if:
- the provisions are included on a separate document from the lease but included with the lease,
- the document is labeled NONSTANDARD RENTAL PROVISIONS, and
- the landlord reviewed each nonstandard rental provision with the tenant (this can be shown by the tenant’s initials or signature on the document)
- A nonstandard rental provision may include a provision that unpaid late fees may be deducted from a security deposit
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Landlords can deduct for other charges only if:
What Cannot be Deducted from a Security Deposit?
It is illegal for a landlord to deduct from a security deposit the costs associated with “normal wear and tear” of the unit or for other costs that the tenant is not responsible for under the law. This is illegal even if the tenant signed a Nonstandard Rental Provision authorizing these deductions. Normal wear and tear includes routine carpet cleaning. ATCP 134.06(3)(c); Wis. Stat. 704.28(3).
When Must a Landlord Return the Security Deposit?
Landlords must deliver to the tenant’s last known address the full security deposit and/or an itemized list of deductions from the security deposit. Under ATCP 134.06(2), the landlord must comply with this requirement within 21 days after any of the following:
- If the tenant leaves at the end of the lease, the date the lease ends
- If the tenant moves out or is evicted before the end of the lease, the date on which the tenant’s rental agreement terminates or, if the landlord rerents the premises before the tenant’s rental agreement terminates, the date on which the new tenant’s tenancy begins
- If the tenant moves out or is evicted after the lease has ended, the date the landlord knows the tenant left the unit
The landlord can deliver the security deposit and/or the list of deductions personally, by email, or by mail. ATCP 134.06(4); Wis. Stat. 704.10.
Does the Law Require A Security Deposit to Accrue Interest?
No.
One exception is a security deposit of more than half the monthly rent that was paid before 2011 for a unit in Madison. Under Madison General Ordinance 32.07, a tenant may be owed interest accrued on their security deposit before 2011 unless the interest had already been applied as a rent credit. The applicable interest rates are maintained by the Wisconsin Department of Financial Institutions. Tenants in that scenario may want to contact an attorney to discuss their options.
Can a Tenant Cash a Check Covering a Partial Security Deposit Refund?
Cashing a check that the tenant believes does not cover the full amount owed is risky because the tenant may not be able to sue for the remaining amount. Tenants in this situation may want to contact an attorney for legal advice about their options.
What Are a Tenant’s Remedies if Their Landlord Doesn’t Follow These Rules?
If a landlord does not return the security deposit and/or the list of deductions within the required 21 days, or if the landlord deducted costs from a security deposit that should not have been deducted, a tenant can consider 3 main options.
- The first option is to write an email or letter to the landlord specifying the issue(s) that needs to be addressed. A tenant should include specific reasons why they disagree with a deduction and provide information about why that cost should not have been deducted from the security deposit. A tenant should also confirm the landlord has their new address.
- The second option is to file a complaint with the Wisconsin Department of Agriculture, Trade, and Consumer Protection (DATCP). The complaint can be filed online or over the phone at (608) 224-4953 or (800) 422-7128.
- The third option is to sue the landlord in small claims court. If a court finds that the landlord violated the laws on security deposits, the tenant may be awarded twice the amount of their damages plus costs and reasonable attorneys’ fees. Wis. Stat. 100.20(5); ATCP 134.
Relevant Sample Letters
Security Deposits
| Document & Purpose | Files |
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Security Deposit Wrongfully Withheld Sample letter for tenant to reply to a previous landlord when disputing wrongfully withheld items on a security deposit return. |
PDF 📂 |
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Security Deposit Payment Agreement Sample mutual agreement between tenant and a previous landlord to create a payment schedule to pay a security deposit balance owed. |
PDF 📂 |
Check-In & Check-Out
| Document & Purpose | Files |
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Check-In Form Sample form for tenants and landlords to take note of the conditions of a unit shortly after moving out |
PDF 📂 |
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Check-Out Form Sample form for tenants and landlords to take note of the condition of a unit shortly before moving out. |
PDF 📂 |
Looking for additional sample letters? Check out our page here!
Do you still have more questions about Security Deposits? If you can't find the answers you are looking for on our website, you may want to speak with a Housing Counselor or other staff at Tenant Resource Center. See our hours and locations here!
