Wisconsin security deposit law

Neither chapter 704 nor the rental practices code caps the amount of a security deposit. A security deposit is everything the tenant pays as security for the tenant's obligations, and it includes any rent paid in advance beyond one month's prepaid rent.

Wis. Admin. Code § ATCP 134.02(11) Wis. Stat. § 704.28 Wis. Admin. Code § ATCP 134.06

• A landlord may not accept a security deposit or earnest money from an applicant until the landlord has identified the unit or units the applicant is being considered for. Wis. Admin. Code § ATCP 134.05(1)
• Give a written receipt stating the nature and amount of a deposit as soon as you accept it. A receipt is not required for a check that notes its purpose, unless the tenant asks for one. Wis. Admin. Code § ATCP 134.03(2)(a)
• Before you accept a deposit, show the prospective tenant the written rental agreement and any written rules, and make the disclosures the code requires. Wis. Admin. Code § ATCP 134.03(1) Wis. Admin. Code § ATCP 134.04 See Required disclosures and lease terms on the Wisconsin page
• Cities, villages, towns and counties may not add security deposit or earnest money requirements beyond the state's administrative rules. Wis. Stat. § 66.0104(2)(b)

Return the deposit, less lawful deductions, within 21 days. The 21 days run from the lease's termination date if the tenant leaves on that date; from the termination date, or a new tenant's start if the unit is rerented sooner, if the tenant leaves or is evicted early; and from the date you learn the tenant has left or been removed by the sheriff if the tenant leaves after the termination date.

Wis. Stat. § 704.28(4) Wis. Admin. Code § ATCP 134.06(2)

• You may withhold only amounts reasonably necessary for tenant damage, waste or neglect; unpaid rent the tenant is legally responsible for; unpaid utility service you provided that is not included in the rent; government utility charges or municipal permit fees you become liable for; and any other reason in a separate NONSTANDARD RENTAL PROVISIONS document. Wis. Stat. § 704.28(1) Wis. Admin. Code § ATCP 134.06(3)(a)
• Nothing may be withheld for normal wear and tear, or for damage or losses the tenant cannot reasonably be held responsible for. Wis. Stat. § 704.28(3) Wis. Admin. Code § ATCP 134.06(3)(c)
• A nonstandard withholding reason must be in a separate written document titled NONSTANDARD RENTAL PROVISIONS that you specifically identify with the tenant before the lease is signed. A tenant's signature or initials by the provision creates a rebuttable presumption that you did. Wis. Stat. § 704.28(2) Wis. Admin. Code § ATCP 134.06(3)(b)
• If you withhold anything, deliver or mail a written statement, within the same 21 days, describing each item of damage or other claim and the amount withheld for it. Wis. Admin. Code § ATCP 134.06(4)(a)
• Never intentionally misrepresent or falsify a claim against a deposit, including the cost of repairs, or withhold under a falsified claim. Wis. Admin. Code § ATCP 134.06(4)(b)
• A landlord who otherwise complied is not in violation only because the postal service could not deliver the mail. Wis. Admin. Code § ATCP 134.06(5)
• A tenant who suffers a monetary loss because a landlord violated these rules can recover twice the loss, with costs and a reasonable attorney fee. Wis. Stat. § 100.20(5)

Chapter 704 and the rental practices code do not require a landlord to pay interest on a security deposit or to keep it in a separate account.

Wis. Stat. § 704.28 Wis. Admin. Code § ATCP 134.06

• Rent paid in advance beyond one month's prepaid rent is treated as part of the security deposit, so it follows the same return rules. Wis. Admin. Code § ATCP 134.02(11) Wis. Admin. Code § ATCP 134.06(2)

Give every new tenant a check-in sheet when the tenant moves in. The tenant has 7 days from the start of occupancy to fill it in with any comments on the condition of the home and return it. A renewal does not need a new sheet.

Wis. Stat. § 704.08

• Before you accept a security deposit, tell the tenant in writing that, by a stated date at least 7 days after the tenancy starts, the tenant may inspect the unit and report preexisting damage or defects, and may ask for the list of damages charged to the previous tenant's deposit. Wis. Admin. Code § ATCP 134.06(1)(a)
• If the tenant asks for that list, provide it within 30 days after the request or within 7 days after you notify the previous tenant of deductions, whichever is later. You need not name the previous tenant or give the amounts withheld. Wis. Admin. Code § ATCP 134.06(1)(b)
• Any promise to clean, repair or improve the unit must state the date or period for the work, and promises made before the first rental agreement must be in writing with a copy to the tenant. Wis. Admin. Code § ATCP 134.07(1) Wis. Admin. Code § ATCP 134.07(2) See Repairs and habitability on the Wisconsin page
• Make the check-in sheet useful by identifying the unit and date, noting existing damage room by room and keeping photographs with the returned comments. Record repair promises and their due dates separately, then retain the completed sheet and later correspondence together. This practical file helps distinguish preexisting conditions from a later claim; it does not replace the tenant's statutory check-in rights. Wis. Stat. § 704.08 Wis. Admin. Code § ATCP 134.07(1)