Landlord Tenant Guide - Wisconsin Department Of .

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Landlord Tenant GuideLandlord-tenant relations in Wisconsin are regulated byWis. Stat. ch. 704, and Wis. Adm. Code ch. ATCP 134.Wisconsin Administrative Code Chapter ATCP 134(“ATCP 134”)Scope and Application: ATCP 134.01, The ResidentialRental Practices Rule applies to business practicesrelated to the rental of most residential dwelling unitsin this state.The Residential Rental Practices rule does not cover thefollowing kinds of living arrangements: When a person lives in a premises operated by apublic or private institution and the person livesthere to receive medical, educational, counseling,religious, or similar services.When a person occupies a hotel, motel, boardinghouse, rooming house, or similar lodging for lessthan 60 days and the person is traveling away fromhis/her permanent place of residence.When a person lives in a premises owned andoperated by the government or an agency ofgovernment. However, these rules do apply tofederally subsidized rental housing if the housing isprivately owned or operated (which includes HUD"Section 8" housing). When a member of a fraternal or socialorganization lives in a premises operated by thatorganization. However, if the organization rentsrooms to non-members, these rules could apply tothose rental agreements. When a person does commercial agricultural workand lives on the premises where he or she isworking. When a person operates and maintains thepremises and the person lives on the premises freeof charge as part of the employment arrangement. When a person lives in a dwelling unit that theperson is in the process of buying under a contractof sale.ATCP 134.03Rental agreements and receiptsCopies of rental agreements and rules; (ATCP134.03(1))If a rental agreement or any of the landlord's rulesor regulations are in writing, the landlord shouldgive the tenant a chance to read them before thetenant decides to rent. This gives the tenant achance to find out what all the rental terms andconditions are before deciding whether to rentfrom that landlord. The landlord and tenant mustagree on the essential terms of the tenancy, suchas the total rent, the amount of the securitydeposit, and the specific dwelling unit the tenantwill occupy.Once the parties sign a written agreement, thetenant must receive a copy of the entireagreement.By approving an individual as a prospectivetenant, a landlord does not necessarily enter intoa rental agreement with that person until they

agree on the essential terms of tenancy. (SeeATCP 134.02(10), definition of "Rentalagreement" and the "Note.")Understand, the rules do not require rentalagreements to be in writing. Verbal rentalagreements are traditional in many parts of therental industry. Existing statutes allow verbalrental agreements and leases, Wis. Stat. sec.704.01(1) and (3).Receipts for tenant payments (ATCP 134.03(2))The landlord is required to give the tenant awritten receipt any time the landlord accepts anearnest money deposit, a security deposit, or rentpaid in cash. If the tenant pays by check, the rulesdo not require the landlord to provide a receipt,unless the tenant asks for a receipt.ATCP 134.04Disclosure requirementsIdentification of landlord or authorized agents(ATCP 134.04(1))In many disputes about building maintenance,tenants indicate that part of the problem is thatthe tenants are not able to contact the landlordabout a pressing problem.To help address these problems, this subsectionrequires the landlord to disclose, in writing, thename and address of the person or personsauthorized to collect rent and the person orpersons who manage and maintain the premises.The tenant must be able to contact these peoplerelatively easily. In addition, the landlord mustidentify an owner of the premises or a personauthorized to accept legal papers on behalf of theowner. The rule requires that this address (not aPost Office Box) be located within the State ofWisconsin, and that the landlord must providenotice of any change of the person's addresswithin 10 business days of the change occurring.These disclosure requirements do not apply toowner-occupied structures containing up to fourdwelling units, since, in such cases, the landlord isliving in the building and the tenant knows whomto contact.Code violations and conditions affectinghabitability (ATCP 134.04(2))Local housing codes generally establish thestandards which rental housing must meet. Alandlord must maintain their rental propertiesunder the requirements of local housing codes.Local housing codes do not protect all rentalhousing in Wisconsin. Even in municipalities thathave housing codes, individual rental units maynot be inspected regularly.Before entering into a rental agreement oraccepting any earnest money or security depositfrom a prospective tenant, the landlord mustdisclose to the prospective tenant any building orhousing code violations that the landlord hasactual knowledge of, affecting the dwelling unit orcommon areas of the premises, that present asignificant threat to the prospective tenant’shealth or safety and which the landlord has notcorrected.The landlord must also disclose if the dwellingunit lacks hot or cold running water; if the heatingfacilities serving the dwelling unit are not in safeoperating condition, or are not capable ofmaintaining a temperature of at least 67 F duringall seasons of the year the unit may be occupied;that the dwelling unit is not served by electricity,or the electrical wiring, fixtures or othercomponents of the electrical system are not insafe operating condition; any structural or otherconditions in the dwelling unit or premises whichconstitute a substantial hazard to the health orsafety of the tenant; the dwelling unit is notserved by plumbing facilities in good operatingcondition; or if the dwelling unit is not served bysewage disposal facilities in good operatingcondition.Utility charges (ATCP 134.04(3))Landlords often require tenants to pay the utilitycharges separate from the rent. Before decidingto rent a specific unit, it is important for a tenantto know whether or not the utility charges areincluded in the rent. A tenant needs thisinformation so they can accurately determine thetotal cost of renting the unit.2

ATCP 134.04(3), provides that the landlord musttell a prospective tenant if utility charges are notincluded in the rent. The tenant must receive thisinformation before signing a rental agreement orpaying any money for an earnest money depositor security deposit.If utility charges are not included in the rent andindividual dwelling units and common areas ofthe building are not separately metered, thelandlord must tell the tenant how the costs forutility services will be allocated among theindividual dwelling units.ATCP 134.05Earnest money depositsEarnest money deposit is the money a prospectivetenant gives a landlord in return for the option ofentering into a rental agreement in the future or so thelandlord will consider the person's application. Thepurpose of these deposits is to protect the landlordfrom possible costs or losses if the prospective tenantdecides not to rent from the landlord. The rules do notprohibit earnest money deposits, nor do they set anylimit on the maximum amount of the deposit.Accepting earnest money deposits (ATCP134.05(1))A landlord may not accept earnest moneydeposits until the landlord identifies the specificdwelling unit(s) for which the prospective tenantis being considered. (Note: Credit check fees arenot "earnest money deposits".)Returning earnest money deposits (ATCP134.05(2))(a) When no rental agreement is made the landlordmust return the full earnest money deposit to theapplicant by the end of the first business day, byfirst-class mail or by delivering it to the applicant,after:The landlord rejects the tenant's application orrefuses to enter into a rental agreement with theapplicant.The applicant withdraws their application beforethe landlord accepts or rejects it.The landlord does not approve the rentalapplication within three business days after takingthe earnest money deposit. The landlord andapplicant may agree, in writing, to a longer timefor the landlord to consider the application, up to21 days.(b) If the landlord and tenant enter a rentalagreement, then the landlord must either applythe earnest money deposit to the rent, apply it tothe security deposit, or return it to the tenant.If the landlord returns less than the full amount ofthe earnest money deposit and the prospectivetenant accepts the partial amount, the prospectivetenant still has the right to claim the landlord oweshim/her the full amount of the deposit.Withholding an earnest money deposit (ATCP134.05(3))If the landlord approves the person to be atenant, but the person decides not to enter into arental agreement the landlord may withhold fromthe earnest money deposit for lost rent andadvertising costs actually incurred due to thetenant’s failure to rent the premises.However, if the landlord significantly changed therental terms previously discussed with the tenantand that is why the tenant withdrew theirapplication, the landlord may not withhold moneyfrom the earnest money deposit.If the landlord withholds money from the earnestmoney deposit for "lost rent," the landlord mustmake reasonable efforts to re-rent the premisesto "mitigate damages” as provided under Wis.Stat. sec. 704.29ATCP 134.06Security depositsMost Wisconsin landlords require a security deposit atthe beginning of a tenancy to protect themselves fromtenant damage or default.Check-In procedures; pre-existing damages(ATCP 134.06(1))When the landlord requires a security deposit, therules establish certain basic elements of a "checkin" procedure. First, before accepting any security3

deposit the landlord must provide written noticethat the tenant has at least seven days to inspectand document any preexisting damages ordefects.Second, the landlord must tell the tenant theyhave a right to receive a list or description of anyphysical damages for which the landlord withheldmoney from the previous tenant's securitydeposit prior to accepting a security deposit orconverting an earnest money deposit to a securitydeposit. The landlord may require the prospectivetenant to request this list of damages in writing.If the tenant requests a list of previous damages,the landlord must provide the list within 30 daysafter receiving the request, or within seven daysafter charging the previous tenant for damages,whichever is later. The rules do not require thelandlord to disclose the amount of the charges orthe identity of the previous tenant. If the landlordrepaired the damages, the landlord may note thison the list.Returning security deposits (ATCP 134.06(2))The rules provide that the landlord must deliveror mail the security deposit, less any amountsproperly withheld, to the last known address ofthe tenant within 21 days after the end of therental agreement. If the tenant leaves thedwelling unit before the end of the rentalagreement, the landlord still has 21 days after theend of the rental agreement to return the securitydeposit unless the landlord re-rents the dwellingunit before the end of the rental agreement. Inthat case, the landlord must return the securitydeposit within 21 days after the dwelling unit isre-rented.Any payment on starting a tenancy that is morethan one month's prepaid rent is defined to be asecurity deposit. Nothing in the rules prevents alandlord from collecting more than one month'srent as security. However, when the tenantsurrenders the premises, the landlord must treatit as a security deposit and must account for it assuch.Limitations on security deposit withholding (ATCP134.06(3))(a) Generally, the landlord may withhold money fromthe security deposit only for the followingreasons: Tenant damage, waste, or neglect of the premises; Nonpayment of rent; Nonpayment of actual amounts the tenant owesthe landlord for utility services provided by thelandlord; Nonpayment of government utility charges forwhich the tenant is responsible but become theliability of the landlord if the tenant does not pay,and; Any other payment for a reason provided in anonstandard rental provision document describedin par. (b).(b) The rule allows landlords and tenants to mutuallyagree, in a "Nonstandard Rental Provision," topermit the landlord to withhold the securitydeposit for other reasons than those listed abovewith some exceptions.(c) Specifically, the landlord may not negotiate a"Nonstandard Rental Provision" with the tenantto withhold the security deposit for any costsrelated to "normal wear and tear." Both the Wis.Stat. sec. 704.28(3) and residential rentalpractices rule ATCP 134.06(3)(C) prohibit routineacross-the-board deductions from the securitydeposit for cleaning, painting, or carpet cleaning,that result from only "normal wear and tear."However, a rental agreement may include acontractual provision requiring the tenant to payfor routine carpet cleaning. Even if the rentalagreement includes the permitted provision, thecost for the routine carpet cleaning may not becollected by the landlord in advance because allprepayments in excess of one month’s rent mustbe treated as “security deposit.” Even if the rentalagreement includes the permitted provision, alandlord may not deduct the cost of routinecarpet cleaning from the security deposit, whichcannot be withheld for normal wear and tear.4

Security deposit withholding; statement of claims(ATCP 134.06(4))Specific date of completion required (ATCP134.07(1))If the landlord deducts any money from thesecurity deposit, the landlord must give thetenant an itemized written statement ofaccounting. This statement must have two entriesfor each individual deduction:For every "promise to repair," the landlord mustspecify the date or time period when the landlordwill complete the repairs, cleaning, orimprovements. This requirement applies topromises to clean, repair or improve anyfurnishings, facilities, or parts of the premises.1. a description of the item and physical damages orother reason for the claim, andInitial promises must be in writing (ATCP134.07(2))2. the amount withheld as reasonablecompensation for the claim.If the landlord makes any promises to repair,clean or improve the premises before the partiessign the initial rental agreement, the landlordmust put the promises to repair in writing. Thelandlord must give the tenant a copy of thesepromises.This allows for discussion about whether or notthe claim is valid and whether or not the chargefor the item is valid. Failure to describe thedamage, waste, or neglect that led to each chargemakes it appear the charges are being withheldfor normal wear and tear.Repairs must be completed on time (ATCP134.07(3))The rules prohibit a landlord from intentionallyfalsifying any security deposit claim.The landlord must complete the promised repairsor improvements within the time period stated inwriting. The only excuses the rules "accept" forthe landlord not completing the repairs on timeare if:Tenant failure to leave forwarding address (ATCP134.06(5))The rules require the landlord to mail the securitydeposit and/or an accounting for the securitydeposit to the tenant's last known address. Thisrule applies even if the last known address is thedwelling unit the tenant rented under the rentalagreement. A tenant should notify the postalservice and the landlord, or the landlord's agent,of their change of address as soon as possible toinsure they receive their security deposit in atimely manner. However, if a tenant fails to leavea forwarding address, this does not affect thetenant's rights to demand that the landlord returnsome or all of the security deposit. there is a labor stoppage, supplies are not available, there are unavoidable casualties, or there are other causes clearly beyond thelandlord's control.If something happens to delay the completion ofthe repairs, the landlord must tell the tenant whathas happened that is beyond the landlord'scontrol and give the tenant a new date when therepairs will be completed.ATCP 134.07ATCP 134.08Promises to repairProhibited rental agreement provisionsSome people agree to rent a dwelling unit based uponthe landlord's promises to make certain repairs orimprovements to the premises. Such promises mayinduce a person to rent a dwelling unit and should be inwriting.Under the rules, rental agreements that contain any ofthe following provisions are void in their entirety:Allows a landlord to do any of the followingbecause a tenant has contacted an entity for lawenforcement services, health services, or safetyservices: Increase rent, decrease services, bring an5

action for possession of the premises, refuse torenew a rental agreement, or threaten to take anyaction to do so. (ATCP 134.08(1))Authorizes the landlord to evict or exclude thetenant from the premises, other than by judicialeviction procedures as provided under ch. 799,Stats.(ATCP 134.08(2))Provides for the acceleration of rent payments orwaives the landlord’s obligation to mitigatedamages in the event of tenant default. If thetenant breaches or defaults on their rentalagreement, the landlord may not require the tenantto immediately pay for all future rent payments thatthe tenant is otherwise obligated to pay. Also,under the rule, the landlord is obligated to attemptto “mitigate the damages.” In most cases, thismeans that the landlord must try to reduce theamount of rent the tenant is still obligated to pay bytrying to re-rent the apartment. A rental agreementmay not in any way try to waive the landlord'sobligation to mitigate damages and re-rent thepremises as required under, Wis. Stat. sec.704.29.(ATCP 134.08(3))Requires the tenant to agree to pay any attorney'sfees or costs the landlord may incur in any legalaction or dispute arising out of the rentalagreement. However, this does not prohibit thelandlord or tenant from recovering attorney's feesand costs under a court order under Wis. Stats. ch.799 or 814. (ATCP 134.08(4))Authorizes the landlord to "confess judgment”against the tenant. A tenant is legallydisadvantaged by a rental agreement when therental agreement contains a clause that says thelandlord may confess judgement against the tenantwhenever certain disputes arise.Says the landlord is not liable for or responsible forany property damage or personal injury caused bythe landlord's negligent acts or omissions. (ATCP134.08(6))Says the tenant is liable for personal injuriesarising from causes clearly outside the tenant'scontrol, or for property damage caused by naturaldisasters or persons other than the tenant, thetenant's guests, or persons the tenant has invited tothe premises. (ATCP 134.08(7))Waives any statutory or other legal obligation thatrequires the landlord to deliver the premises in afit or habitable condition, or maintain the premisesduring tenancy. While tenants may be heldresponsible for some maintenance duties, tenantscannot legally give up their rights, such as the rightto safe and habitable housing. (ATCP 134.08(8))Allows the landlord to terminate the tenancy of atenant based solely on the commission of a crimein or on the rental property if the tenant, orsomeone who lawfully resides with the tenant, is avictim of that crime. (ATCP 134.08(9))Allows the landlord to terminate the tenancy of atenant for a crime committed in relation to therental property and the rental agreement does notinclude, the notice required by Wis. Stat. sec.704.14. (ATCP 134.08(10))It is important to note that a rental provisionrequiring the tenant to pay for professional carpetcleaning or other routine cleaning, in the absence ofnegligence or improper use by the tenant, does notrender a rental agreement void. Because routinecarpet cleaning is not an obligation statutorilyimposed on either the landlord or the tenant,assigning this responsibility to a tenant through acontractual provision does not render a rentalagreement void.ATCP 134.09Prohibited practicesAdvertising or rental of

Landlord-tenant relations in Wisconsin are regulated by Wis. Stat. ch. 704, and Wis. Adm. Code ch. ATCP 134. Wisconsin Administrative Code Chapter ATCP 134 (“ATCP 134”) Scope and Application: ATCP 134.01, The Residential Rental Practices Rule applies to business practices related to the rental of most residential dwelling units in this state.

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