| Quick Facts | Answer |
| Acceptable Deductions | Unpaid rent and utilities
Costs of damage Monthly municipal permit fees Other charges outlined in the lease |
| Return Deadline | 21 Days |
| Itemized Deductions | Required |
| Penalty for Late Return | 2x Amount Due + Court Costs + Attorneys’ Fees |
For laws on security deposit collections and holdings in Wisconsin, click here.
Wisconsin state law bans any city or county from enacting its own security deposit rules. Such laws may still be on the books if they haven’t been repealed, but they are unenforceable.
Security Deposit Deductions in Wisconsin
Wisconsin allows these deductions from a security deposit:
- Unpaid rent and utilities
- Costs of damage excluding normal wear and tear
- Monthly municipal permit fees (e.g. mobile home parking fees)
- Other charges outlined in a Nonstandard Rental Provisions form
If landlords want to make deductions that are not automatically granted by law, the tenant must agree to them in a separate, written contract titled “Nonstandard Rental Provisions.”
For example, landlords can always deduct unpaid rent from the security deposit, among several other deductions granted by law. However, if a landlord wants to reserve the right to make a reasonable deduction for a lost key or unpaid late rent fee, it must be agreed beforehand by the tenant.
Landlords cannot use a Nonstandard Rental Provisions agreement to authorize deductions from the security deposit for routine painting, carpet cleaning, or other non-refundable charges or deductions for normal wear and tear.
A line item agreement in a Nonstandard Rental Provisions contract is not enforceable unless the tenant signs or initials next it.
Most states, such as Wisconsin, do not have a legal limit on how much a landlord can charge for damages except that the charges must be reasonable.
If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant.
What Is Considered Normal Wear and Tear in Wisconsin?
“Normal wear and tear” is damage and deterioration to a property that happens over time using an ordinary and reasonable level of care. Normal wear and tear includes things like:
- Gently worn carpets
- Lightly scratched glass
- Faded paint and flooring
- Lightly dirtied grout
- Loose door handles
- Stained bath fixtures
“Excessive damage” means any careless, reckless, or intentional damage that occurs because of someone on the property with the tenant’s permission. Examples include:
- Heavily stained, burned, or torn carpets
- Broken tiles or windows
- Holes in the wall
- Missing fixtures
Can the Landlord Charge for Replacing the Carpet in Wisconsin?
Landlords can charge for replacing the carpet if it is damaged beyond normal wear and tear.
A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.
Can the Landlord Charge for Nail Holes in Wisconsin?
Wisconsin landlords can charge a tenant for nail holes if they damage the walls in a way that doesn’t demonstrate an ordinary and reasonable level of care.
Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.
However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage, and thus chargeable to the tenant.
Can the Landlord Charge a Cleaning Fee in Wisconsin?
Landlords in Wisconsin can make deductions from the security deposit for cleaning, but only if the tenant causes damage that requires cleaning (e.g. wine stains on the carpet).
Can the Landlord Charge for Painting in Wisconsin?
Wisconsin landlords can charge for painting, except for normal wear and tear. For example, a landlord might be able to charge for:
- Damage to the paint beyond normal wear and tear
- Tenant repainting without the landlord’s consent
- Tenant repainting with consent, but not doing the work to a professional standard
Normal paint wear includes:
- Minor scrapes from daily use
- Fading due to sunlight
- Minor cracks in the original paint.
Landlords can charge for repainting if the damage is not the result of ordinary care. This includes stains, large or deep scratches, and water damage.
Security Deposit Returns in Wisconsin
Landlords must return any remaining portion of a security deposit and an itemized statement of deductions, if any, no later than 21 days after the tenant vacates or is evicted from the rental unit.
How Long Do Landlords Have To Return Security Deposits in Wisconsin?
Wisconsin landlords have 21 days after the tenant vacates the rental unit or is evicted to return any remaining portion of a security deposit.
Do Landlords Owe Interest on Security Deposits in Wisconsin?
Wisconsin law does not require landlords to provide interest on held security deposits, and state law prohibits local governments from enacting rules on the topic. Any local or county rule that differs from state law on a security deposit is unenforceable.
Madison and Fitchburg laws (which predate the statewide preemption) require landlords to provide an annual “rent credit.” Madison’s City Attorney has stated that a rent credit provision violates state law and cannot be enforced.
How Do Landlords Give Notice in Wisconsin?
Written notice must be mailed or hand-delivered to the tenant’s last known address and must include the amount of the security deposit due, if any, to the tenant, plus an itemized statement of deductions.
The notice can be emailed to the tenant if the lease agrees to use electronic forms of notification.
Can a Security Deposit Be Used for Last Month’s Rent in Wisconsin?
Wisconsin law does not forbid the security deposit from being used for any outstanding rent.
Landlords can include a provision in the lease agreement that the security deposit cannot be used for the last month’s rent until the tenant vacates the rental unit.
Security Deposit Disputes in Wisconsin
If landlords do not return the security deposit or provide a written statement of deductions, if any, within the required time period, tenants can file for damages in court up to twice the amount wrongfully withheld plus court costs and reasonable attorneys’ fees.
Tenants can also take legal action against a landlord for:
- Failure to provide a receipt including the required disclosures
- Unreasonable deductions
How Can Tenants File a Dispute for a Security Deposit in Wisconsin?
If a landlord fails to perform their obligations regarding a security deposit, the tenant can file a dispute in the small claims division of Circuit Court if the amount of damages is less than $10,000. If the amount is greater, the tenant must file a civil case in the Circuit Court.
A small claims case regarding the return of a security deposit must be filed within 3 years.
Cases are filed in the Circuit Court where the rental property is located or where the defendant lives or works. An attorney is not required but permitted. The filing fee is $94.50 plus $20 if the case is filed electronically.
Sources
- 1 Wis. Stat. § 66.0104(2)(b)
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No city, village, town, or county may enact an ordinance that places requirements on a residential landlord with respect to security deposits or earnest money or pretenancy or posttenancy inspections that are additional to the requirements under administrative rules related to residential rental practices.
Source Link
- 2 Wis. Admin. Code ATCP § ATCP 134.06(3)(a)
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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).
Source Link - 3 Wis. Admin. Code ATCP § ATCP 134.06(3)(b)
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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.
Source Link - 4 Wis. Admin. Code ATCP § ATCP 134.06(2)
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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.
Source Link - 5 Wis. Admin. Code ATCP § ATCP 134.06(4)
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(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.
Source Link - 6 Wis. Stat. § 704.10
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A rental agreement may include a provision that permits the landlord to provide and indicate agreement by electronic means any of the following:
(1) A copy of the rental agreement and any document related to the rental agreement.
(2) A security deposit and any documents related to the accounting and disposition of the security deposit and security deposit refund.
(3) A promise made before the initial rental agreement to clean, repair, or otherwise improve any portion of the premises.
(4) Advance notice of entry under s. 704.05(2).
Source Link - 7 Wis. Stat. § 100.20(5)
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Any person suffering pecuniary loss because of a violation by any other person of s. 100.70 or any order issued under this section may sue for damages therefor in any court of competent jurisdiction and shall recover twice the amount of such pecuniary loss, together with costs, including a reasonable attorney fee.
Source Link
- 8 Wis. Stat. § 799.01(1)(d)(1)
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Except as provided in ss. 799.02(1) and 799.21(4) and except as provided under sub. (2), the procedure in this chapter is the exclusive procedure to be used in circuit court in the following actions:
…
(d) Other civil actions where the amount claimed is $10,000 or less, if the actions or proceedings are:
1. For money judgments only except for cognovit judgments which shall be taken pursuant to s. 806.25.
Source Link
- 9 Wis. Stat. § 100.18
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No action may be commenced under this section more than 3 years after the occurrence of the unlawful act or practice which is the subject of the action. No injunction may be issued under this section which would conflict with general or special orders of the department or any statute, rule or regulation of the United States or of this state.
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