Overview
Wisconsin’s security deposit laws are designed to protect both landlords and tenants by outlining how deposits must be collected, handled, and returned. These laws help ensure transparency and fairness throughout the rental process.
Under Wisconsin Statutes § 704.28 and Wis. Admin. Code ATCP 134, landlords must follow specific rules regarding security deposits. Non-compliance can result in the forfeiture of the deposit and additional penalties.
This guide covers:
How much landlords can charge
Where deposits must be stored
Rules for returning security deposits
Penalties for non-compliance
Related Statute: Wis. Stat. § 704.28 & ATCP 134
1. Security Deposit Limits & Storage Requirements
Maximum deposit: Wisconsin law does not set a limit on how much landlords may charge as a security deposit.
Storage requirements: Landlords must hold deposits in a trust account separate from their personal funds but are not required to use an interest-bearing account.
Tenant notification: There is no specific requirement to disclose where the deposit is held, but the tenant must receive a receipt if the deposit is paid in cash.
Law Reference: Wis. Admin. Code ATCP 134.05
2. Security Deposit Returns & Allowable Deductions
Return deadline: Landlords must return the deposit within 21 days after the tenant vacates the unit.
Permissible deductions: Landlords may deduct for unpaid rent, damages beyond normal wear and tear, and other charges specified in the lease.
What landlords cannot deduct: Deductions for ordinary wear and tear, such as faded paint or worn carpets, are not allowed.
Itemized statement required: A written statement itemizing any deductions must be sent with the remaining deposit within the 21-day period.
Law Reference: Wis. Stat. § 704.28
3. Interest Payments & Documentation Requirements
Interest payments: Wisconsin law does not require landlords to pay interest on security deposits unless specified in the lease.
Move-in condition report: Landlords must offer tenants the opportunity to inspect the premises and note any pre-existing damage within seven days of occupancy.
Tenant review period: Tenants should conduct a move-in inspection and return the condition checklist to protect against unfair deductions.
Failure to provide documentation: Failure to comply with the return timeline or checklist requirements can result in forfeiture of the right to withhold from the deposit.
Law Reference: Wis. Admin. Code ATCP 134.06
4. Penalties for Mishandling Security Deposits
Wisconsin law provides specific remedies for tenants when landlords mishandle deposits.
Failure to return the deposit within 21 days may result in double damages and legal fees being awarded to the tenant.
Failure to comply with condition checklist or disclosure rules can also void the landlord’s right to make deductions.
Law Reference: Wis. Stat. § 704.28 & ATCP 134.06
Key Takeaways
There is no cap on security deposit amounts in Wisconsin, but strict rules govern their return.
Deposits must be returned within 21 days of move-out, with a detailed itemized statement of deductions.
Landlords must offer a move-in checklist, and failure to do so limits their ability to make deductions.
Interest is not required unless agreed upon in the lease.
Non-compliance may result in double damages and other penalties.
By understanding and following Wisconsin security deposit laws, landlords can maintain compliance, and tenants can ensure their rights are protected.
Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. Readers should not act or refrain from acting based on any information included in this post without seeking legal counsel or other professional guidance specific to their situation. The information is provided “as is” without any representations or warranties of any kind, express or implied, including but not limited to the accuracy, completeness, or reliability of the content. Laws and regulations may change and vary by jurisdiction.
