| Quick Facts | Answer |
| Maximum / Limit | None |
| Receipt Requirement | Yes |
| Inventory Requirement | Yes |
| Interest Requirement | None |
To learn about laws on security deposit returns in Wisconsin, click here.
Maximum Security Deposit Allowed in Wisconsin
There is no limit on the maximum security deposit in Wisconsin. Many states have a limit on the amount of security deposit that can be collected, but Wisconsin does not.
Wisconsin law preempts local governments from placing any requirements on a security deposit, except those provided by state administrative rules. Some cities have security deposit ordinances written before the state law which now are unenforceable, like Madison and Fitchburg. If state law ever changes, these ordinances will become active again.
Can Landlords Charge an Additional Pet Deposit in Wisconsin?
In Wisconsin, landlords can charge a pet deposit, except for service dogs and emotional support animals. If a landlord collects a pet deposit, it must be handled according to the rules of security deposits.
How Much Rent Can a Landlord Collect Upfront in Wisconsin?
There is no limit on the amount of rent that can be collected upfront in Wisconsin. Many states have a limit on the amount of rent that can be collected at once, but Wisconsin does not.
Security Deposit Collections in Wisconsin
When collecting a security deposit, landlords in Wisconsin must provide a receipt, notify the tenant of their right to an initial inspection, provide a move-in checklist, and make specific disclosures regarding the rental unit.
Do Landlords Have To Provide a Receipt for the Security Deposit in Wisconsin?
Yes, landlords in Wisconsin must provide a receipt for the security deposit that includes the purpose of the payment and the amount.
If the tenant uses a check that states the purpose of the payment, the landlord is not required to provide a receipt unless requested by the tenant.
What Obligations Do Landlords Have To Establish the Condition at Move-in in Wisconsin?
When collecting a security deposit in Wisconsin, landlords must notify tenants of:
- Their right to an initial inspection and/or list of damages
- Additional utility costs
- Non-typical security deposit deductions
- Existing violations or conditions affecting the habitability of the rental unit
Initial Inspection: At the time a security deposit is collected, landlords must provide tenants with a check-in sheet and notify tenants in writing of their right to do the following within 7 days after the start of the tenancy:
- Conducting an initial inspection to notify the landlord of any damages or defects to the rental unit
- Requesting a list of damages or defects, if any, deducted from the previous tenant’s security deposit, whether or not they were repaired (landlords can require tenants to request this in writing)
The landlord must provided a requested list of damages or defects within 30 days of the request or 7 days after the landlord notifies the previous tenant of security deposit deductions, whichever is later. The landlord does not need to mention the identity of the previous tenant or the amounts withheld from their security deposit.
The Tenant Resource Center’s Check-In Form can be used to fulfill the requirement, although this specific template is not required by law.
Utilities: Landlords must provide a disclosure when the cost of water, heat, and/or electricity is not included in the rent. If the rental units are not individually metered, the landlord must disclose how the charges will be calculated.
Non-Standard Deductions: Landlords may allow deductions from the security deposit that are not automatically granted by law (e.g. late rent fees). These must be disclosed to the tenant in a separate written document titled “NONSTANDARD RENTAL PROVISIONS,” provided to the tenant before they sign the lease agreement.
For more information on the Nonstandard Rental Provisions form, see our page on Security Deposit Returns and Deductions in Wisconsin.
Violations: Landlords must disclose any building and housing code violations that:
- They are aware of
- Affect the rental unit or common areas
- Present a significant threat to the tenant’s health or safety
- Have not been corrected
Habitability: Landlords must disclose any of the following conditions affecting habitability that the landlord is aware of or could discover through a reasonable inspection:
- The rental unit lacks hot or cold running water
- The rental unit’s heating source is not in safe operating condition or unable to maintain a minimum temperature of 67° F
- The rental unit is not connected to electricity or any components of the electrical system are not in safe operating condition
- The rental unit has no plumbing or sewage disposal facilities or they are not in good operating condition
- Any part of the rental unit is unsafe
Security Deposit Holdings in Wisconsin
Wisconsin law does not require landlords to hold security deposits separate from other funds. Some other states mandate how and where security deposits are held, but Wisconsin does not.
Are Tenants Entitled to Interest on Their Security Deposit in Wisconsin?
Wisconsin law does not require landlords to provide interest on held security deposits and state law prohibits local governments from enacting rules that require landlords to provide interest.
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 Are Security Deposits Accounted for in Wisconsin?
Security deposits are not considered taxable income when they are collected.
What Happens to a Security Deposit When the Property is Sold in Wisconsin?
When a property is sold in Wisconsin, the original landlord must either:
- Transfer the deposit to the new owner and notify the tenant of their name and address; or
- Return the deposit to the tenant and notify the new owner that the deposit has been returned
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 Madison Code of Ord. § 32.07(2)
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(a) In this section ‘security deposit’ means the total of all payments and deposits given by a tenant to the landlord in a residential tenancy as security for the performance of the tenant’s obligations, and includes but is not limited to all rent payments in excess of one month’s prepaid rent, all pet deposits, furniture deposits and key deposits.
(b) The sum of all payments and deposits, held as security deposit shall not exceed the equivalent of one month’s rent. A security deposit may not be instituted or increased during the occupancy of any original tenant(s) under the same, an amended, a renewed or a new rental agreement. If, however, the terms of the amended, new or renewed rental agreement allow as a new condition a pet or a waterbed and the increase in the security deposit is mutually agreed upon in writing between the parties, a security deposit may be instituted or increased provided it does not exceed one month’s rent.
(c) Landlords who charge an amount less than or equal to fifty percent (50%) of one (1) month’s rent as a security deposit shall be exempt from the provisions of this Ordinance which require the payment of a rent credit.
(d) Except as permitted pursuant to Sec. 32.07(8) which provides that a security deposit shall be returned to a tenant or accounted for within twenty-one (21) days of vacation of the premises by that tenant, a landlord may not simultaneously hold a security deposit given by a tenant and a sub-tenant of the same rental premises unless the total of the deposits made by the parties does not exceed the equivalent of one month’s rent.
(e) Nothing in this subsection shall be construed as prohibiting the voluntary prepayment of rent by a tenant or the prepayment of rent by a tenant pursuant to a mutually agreed upon semesterly, annual or other periodic payment plan, provided the plan contains a bona fide monthly rental payment option which the tenant is free to elect at their sole discretion. A bona fide rental payment option within the meaning of this Ordinance is one where the total of all payments under the monthly payment option does not exceed by more than five percent (5%) the total of all payments under any of the other periodic payment options.
Source Link - 3 Fitchburg Code of Ord. § 72-75
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The amount of the security deposit shall not exceed one month’s rent. Landlords who charge an amount less than or equal to 50 percent of one month’s rent as a security deposit shall be exempt from the provisions of this division that require the payment of a rent credit.
Source Link - 4 Wis. Admin. Code ATCP § ATCP 134.03
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(1) COPIES OF RENTAL AGREEMENTS, RULES.
Rental agreements and rules and regulations established by the landlord, if in writing, shall be furnished to prospective tenants for their inspection before a rental agreement is entered into, and before any earnest money or security deposit is accepted from the prospective tenant. Copies shall be given to the tenant at the time of agreement.
(2) RECEIPTS FOR TENANT PAYMENTS.
(a) Immediately upon accepting any earnest money or security deposit, the landlord shall provide the tenant or prospective tenant with a written receipt for the deposit, stating the nature of the deposit and its amount. A receipt is not required where payment is made by check bearing a notation describing the purpose for which it was given, unless requested by the tenant.
(b) If a tenant pays rent in cash, the landlord upon receiving the cash payment shall provide the tenant with a written receipt stating the nature and amount of the payment. A landlord is not required to provide a receipt for rent payments made by check.
Source Link - 5 Wis. Stat. § 704.08
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A landlord shall provide to a new residential tenant when the tenant commences his or her occupancy of the premises a check-in sheet that the tenant may use to make comments, if any, about the condition of the premises. The tenant shall be given 7 days from the date the tenant commences his or her occupancy to complete the check-in sheet and return it to the landlord. The landlord is not required to provide the check-in sheet to a tenant upon renewal of a rental agreement. This section does not apply to the rental of a plot of ground on which a manufactured home, as defined in s. 704.05(5) (b) 1 a., or a mobile home, as defined in s. 704.05(5) (b) 1 b., may be located.
Source Link - 6 Wis. Admin. Code ATCP § ATCP 134.06(1)
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(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.
Source Link - 7 Wis. Admin. Code ATCP § ATCP 134.04(3)
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If charges for water, heat or electricity are not included in the rent, the landlord shall disclose this fact to the tenant before entering into a rental agreement or accepting any earnest money or security deposit from the prospective tenant. If individual dwelling units and common areas are not separately metered, and if the charges are not included in the rent, the landlord shall disclose the basis on which charges for utility services will be allocated among individual dwelling units.
Source Link - 8 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 - 9 Wis. Admin. Code ATCP § ATCP 134.04(2)
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Before entering into a rental agreement or accepting any earnest money or security deposit from the prospective tenant, the landlord shall disclose to the prospective tenant:
(a) Any building code or housing code violation to which all of the following apply:
1. The landlord has actual knowledge of the violation.
2. The violation affects the dwelling unit that is the subject of the prospective rental agreement or a common area of the premises.
3. The violation presents a significant threat to the prospective tenant’s health or safety.
4. The violation has not been corrected.
(b) The following conditions affecting habitability, the existence of which the landlord knows or could know on basis of reasonable inspection, whether or not notice has been received from code enforcement authorities:
1. The dwelling unit lacks hot or cold running water.
2. Heating facilities serving the dwelling unit are not in safe operating condition, or are not capable of maintaining a temperature, in all living areas of the dwelling unit, of at least 67° F (19° C) during all seasons of the year in which the dwelling unit may be occupied. Temperatures in living areas shall be measured at the approximate center of the room, midway between floor and ceiling.
3. The dwelling unit is not served by electricity, or the electrical wiring, outlets, fixtures or other components of the electrical system are not in safe operating condition.
4. Any structural or other conditions in the dwelling unit or premises which constitute a substantial hazard to the health or safety of the tenant, or create an unreasonable risk of personal injury as a result of any reasonably foreseeable use of the premises other than negligent use or abuse of the premises by the tenant.
5. The dwelling unit is not served by plumbing facilities in good operating condition.
6. The dwelling unit is not served by sewage disposal facilities in good operating condition.
Source Link - 10 Wis. Stat. § 704.09
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All covenants and provisions in a lease which are not either expressly or by necessary implication personal to the original parties are enforceable by or against the successors in interest of any party to the lease. However, a successor in interest is liable in damages, or entitled to recover damages, only for a breach which occurs during the period when the successor holds his or her interest, unless the successor has by contract assumed greater liability; a personal representative may also recover damages for a breach for which the personal representative’s decedent could have recovered.
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