HIGH RISK

Wisconsin

Security deposit laws

Wisconsin security deposit laws are detailed under the Wisconsin Statutes, Chapter 704 and Wisconsin Administrative Code, Chapter ATCP 134. These laws provide clear guidelines on how landlords must handle security deposits, ensuring both landlords and tenants are aware of their rights and responsibilities under Wisconsin law. Please note that rules and regulations may vary by municipality.

Collecting & Holding

Security Deposit Amount

Wisconsin law does not impose a statutory limit on the amount of a security deposit a landlord may require. However, the amount must be reasonable and is typically one or two months' rent.

Options for Holding

Wisconsin law does not require landlords to hold security deposits in a separate account or escrow. The landlord is simply required to return the deposit as specified by law.

Notification Requirements

If the tenant pays the security deposit in cash, the landlord must provide a written receipt upon request.

At the start of the tenancy, landlords must provide a check-in sheet that lists the condition of the rental unit and allows tenants to note any existing damages.

Payment of Interest Earned

Wisconsin law does not require landlords to pay interest on security deposits.

Returning

Timeline for Returning

The landlord must return the security deposit within 21 days after the tenant vacates the property or within 21 days after the landlord learns that the tenant has abandoned the property.

Claims Process

If any portion of the deposit is withheld, the landlord must provide a written statement detailing the reasons for the deductions within the same 21-day period.

If direct communication fails, the tenant can send a formal demand letter to the landlord requesting the return of the disputed amount. This letter should clearly state the reasons for the dispute and any evidence the tenant has to support their claim.

If still unresolved, tenants can file a complaint with the DATCP, which enforces landlord-tenant regulations in Wisconsin. The DATCP can investigate the matter and mediate between the tenant and landlord.

If the dispute remains unresolved, the tenant can file a claim in small claims court. In Wisconsin, tenants can sue for the return of their deposit, and if the court finds that the landlord wrongfully withheld the deposit, the tenant may be awarded double the amount wrongfully withheld, plus court costs and reasonable attorney’s fees.

Permissible Deductions

Wisconsin landlords may deduct from a security deposit for:

  • Unpaid Rent: Landlords can deduct unpaid rent from the security deposit.
  • Damage Beyond Normal Wear and Tear: Deductions can be made for damage that goes beyond normal wear and tear. This includes excessive dirtiness, holes in walls, or other significant damage to the property.
  • Breach of Lease: Landlords can deduct for any breaches of the lease agreement, such as unauthorized pets or early lease termination.

Penalties

If a landlord wrongfully withholds any portion of the security deposit, the tenant may recover twice the amount wrongfully withheld, plus court costs and reasonable attorney’s fees.

Special Circumstances

Abandonment: If a tenant abandons the property, the landlord still has 21 days from the date they became aware of the abandonment to return the security deposit.

Eviction: In the case of eviction, the security deposit must still be returned or accounted for within 21 days of the tenant vacating the property.

DISCLAIMER: Security deposit laws may vary by county or municipality. The information provided by Build Whale, Inc. is for
general informational purposes only and should not be construed as legal advice. It is not a substitute for consultation with a
qualified attorney. While we strive to provide accurate and up-to-date information, Build Whale, Inc. makes no guarantees or
warranties regarding the accuracy, completeness, or reliability of the information presented.

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