Current through August 26, 2024
(1) CHECK-IN PROCEDURES; PRE-EXISTING
DAMAGES.
(a) Before a landlord accepts a
security deposit, or converts an earnest money deposit to a security deposit
under s.
ATCP 134.05, the landlord shall notify the tenant in
writing that the tenant may do any of the following by a specified deadline
date which is not less than 7 days after the start of tenancy:
1. Inspect the dwelling unit and notify the
landlord of any preexisting damages or defects.
2. Request a list of physical damages or
defects, if any, charged to the previous tenant's security deposit. The
landlord may require the tenant to make this request, if any, in
writing.
(b) If a tenant
makes a request under par. (a) 2., the landlord shall provide the tenant with a
list of all physical damages or defects charged to the previous tenant's
security deposit, regardless of whether those damages or defects have been
repaired. The landlord shall provide the list within 30 days after the landlord
receives the request, or within 7 days after the landlord notifies the previous
tenant of the security deposit deductions, whichever occurs later. The landlord
may explain that some or all of the listed damages or defects have been
repaired, if that is the case. The landlord need not disclose the previous
tenant's identity, or the amounts withheld from the previous tenant's security
deposit.
(2) RETURNING
SECURITY DEPOSITS. A landlord shall deliver or mail to a tenant the full amount
of any security deposit paid by the tenant, less any amounts that may be
withheld under sub. (3), within 21 days after any of the following:
(a) If the tenant vacates the premises on the
termination date of the rental agreement, the date on which the rental
agreement terminates.
(b) If the
tenant vacates the premises or is evicted before termination date of the rental
agreement, 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.
(c) If the tenant vacates the premises or is
evicted after the termination date of the rental agreement, the date on which
the landlord learns that the tenant has vacated the premises or has been
removed from the premises under s.
799.45(2),
Stats.
Note: A rent payment in excess of one month's
prepaid rent is considered a "security deposit" as defined under s.
ATCP 134.02(11). This chapter does not
prevent a landlord from collecting more than one month's prepaid rent. However,
if the landlord holds any rent prepayment in excess of one month's prepaid rent
when the tenant surrenders the premises, the landlord must treat that excess as
a "security deposit" under sub. (2).
Note: See Pierce v. Norwick,
202 Wis. 2d 588 (1996), regarding the award of damage claims for failure to
comply with provisions of this chapter related to security deposits and earnest
money deposits.
(3) SECURITY DEPOSIT WITHHOLDING;
RESTRICTIONS.
(a)
Standard
withholding provisions. When a landlord returns a security deposit to
a tenant after the tenant vacates the premises, the landlord may withhold from
the full amount of the security deposit only amounts reasonably necessary to
pay for any of the following:
1. Except as
provided in par. (c), tenant damage, waste, or neglect of the
premises.
2. Unpaid rent for which
the tenant is legally responsible, subject to s.
704.29,
Stats.
3. Payment that the tenant
owes under the rental agreement for utility service provided by the landlord
but not included in the rent.
4.
Payment that the tenant owes for direct utility service provided by a
government-owned utility, to the extent that the landlord becomes liable for
the tenant's nonpayment.
5. Unpaid
monthly municipal permit fees assessed against the tenant by a local unit of
government under s.
66.0435(3),
Stats., to the extent that the landlord becomes liable for the tenant's
nonpayment.
6. Any other payment
for a reason provided in a nonstandard rental provision document described in
par. (b).
(b)
Nonstandard rental provisions. Except as provided in par. (c),
a rental agreement may include one or more nonstandard rental provisions that
authorize the landlord to withhold amounts from the tenant's security deposit
for reasons not specified in par. (a) 1. to 5. Any such nonstandard rental
provisions shall be provided to the tenant in a separate written document
entitled " NONSTANDARD RENTAL PROVISIONS." The landlord shall specifically
identify each nonstandard rental provision with the tenant before the tenant
enters into a rental agreement with the landlord. If the tenant signs his or
her name, or writes his or her initials, by a nonstandard rental provision, it
is rebuttably presumed that the landlord has specifically identified the
nonstandard rental provision with the tenant and that the tenant has agreed to
it.
Note: The separate written document under par.
(b) may be pre-printed.
(c)
Normal wear and tear. This subsection does not authorize a
landlord to withhold any amount from a security deposit for normal wear and
tear, or for other damages or losses for which the tenant cannot reasonably be
held responsible under applicable law.
Note: For example, a landlord may not withhold
from tenant's security deposit for routine painting or carpet cleaning, where
there is no unusual damage caused by tenant abuse.
Note: A lease may include a contractual
provision requiring the tenant to pay for routine carpet cleaning. OAG 4-13.
Even if the lease includes the permitted provision, the cost for routine carpet
cleaning may not be collected by the landlord in advance because all
prepayments in excess of one month's rent must be treated as "security
deposit." Even if the lease includes the permitted provision, a landlord may
not deduct the cost of routine carpet cleaning from the security deposit, which
cannot be withheld for normal wear and tear under sub.
(3).
(4) SECURITY
DEPOSIT WITHHOLDING; STATEMENT OF CLAIMS.
(a)
If any portion of a security deposit is withheld by a landlord, the landlord
shall, within the time period and in the manner specified under sub. (2),
deliver or mail to the tenant a written statement accounting for all amounts
withheld. The statement shall describe each item of physical damages or other
claim made against the security deposit, and the amount withheld as reasonable
compensation for each item or claim.
(b) No landlord may intentionally
misrepresent or falsify any claim against a security deposit, including the
cost of repairs, or withhold any portion of a security deposit pursuant to an
intentionally falsified claim.
(5) TENANT FAILURE TO LEAVE FORWARDING
ADDRESS. A landlord who has otherwise complied with this section shall not be
considered in violation solely because the postal service has been unable to
complete mail delivery to the person addressed. This subsection does not affect
any other rights that a tenant may have under law to the return of a security
deposit.
"Deliver" includes delivery by an agent of the landlord
such as a private courier service.