Wisconsin Security Deposit Law

Maximum deposit

Wisconsin sets no limit on the amount of a security deposit, but any rent prepaid beyond one month is treated as part of the security deposit (Wis. Stat. § 704.28; Wis. Admin. Code ATCP 134.06). (Wis. Stat. § 704.28 (no amount limit), Wis. Admin. Code ATCP 134.06 & Note (prepaid rent over one month treated as security deposit))

Return deadline

Landlords must deliver or mail the deposit, less lawful deductions, within 21 days after the rental agreement ends (or after a new tenant's tenancy begins if the unit is re-rented first, or after the landlord learns a holdover tenant left) (Wis. Stat. § 704.28(4); Wis. Admin. Code ATCP 134.06(2)). (Wis. Stat. § 704.28(4), Wis. Admin. Code ATCP 134.06(2))

Itemized statement of deductions

A landlord who withholds any amount must deliver or mail, within the same 21 days, a written statement describing each item of damage or other claim and the amount withheld for each (Wis. Admin. Code ATCP 134.06(4)(a)). (Wis. Admin. Code ATCP 134.06(4))

Interest on the deposit

Wisconsin law does not require landlords to pay interest on security deposits (Wis. Stat. § 704.28 and ATCP 134.06 are silent). (Wis. Stat. § 704.28 (silent on interest), Wis. Admin. Code ATCP 134.06 (silent on interest))

Penalty for wrongful withholding

A tenant who loses money because of a deposit violation can recover twice the loss plus costs and reasonable attorney fees (Wis. Stat. § 100.20(5); Wis. Stat. § 704.95; ATCP 134.06). (Wis. Stat. § 100.20(5), Wis. Stat. § 704.95 (violations of § 704.28 may be unfair trade practices under § 100.20))

Where the deposit is held

Wisconsin does not tell landlords where to keep a tenant's deposit; neither the deposit statute nor the DATCP rental rule requires a separate, escrow or trust account (Wis. Stat. § 704.28; Wis. Admin. Code ATCP 134.06). (Wis. Stat. § 704.28 (silent on where the deposit is held), Wis. Admin. Code ATCP 134.06 (silent on where the deposit is held))

Receipt or written notice of the deposit

As soon as a Wisconsin landlord accepts an earnest money or security deposit, the tenant must be handed a written receipt (Wis. Admin. Code ATCP 134.03(2)(a)). (Wis. Admin. Code ATCP 134.03(2))

The receipt must state the nature of the deposit and its amount. No receipt is needed when the tenant pays by check bearing a notation of its purpose, unless the tenant asks for one; cash rent payments also require a written receipt (ATCP 134.03(2)(b)).

Move-in condition checklist

Every new Wisconsin tenant must get a check-in sheet at move-in on which to note the unit's condition (Wis. Stat. § 704.08; Wis. Admin. Code ATCP 134.06(1)). (Wis. Stat. § 704.08, Wis. Admin. Code ATCP 134.06(1))

The tenant has 7 days from the start of occupancy to complete and return the check-in sheet (not required on renewal). Separately, before accepting a deposit the landlord must tell the tenant in writing that the tenant may inspect the unit and report pre-existing damage, or request the list of damages charged to the previous tenant's deposit, within a deadline of at least 7 days after the tenancy starts (ATCP 134.06(1)).

Pet deposits

A Wisconsin landlord may not require extra compensation, such as a pet fee or pet deposit, from a tenant with a disability-related need for a service animal or emotional support animal (Wis. Stat. § 106.50(2r)(bg)1., (br)1.). (Wis. Stat. § 106.50(2r)(bg), (br), Wis. Stat. § 106.50 (section page))

The ban covers trained service animals (§ 106.50(2r)(bg)) and emotional support animals (§ 106.50(2r)(br)); the tenant remains liable for sanitation and for damage the animal causes, and misrepresenting a disability or ESA need carries a forfeiture of at least $500. Ordinary pet deposits and fees are not specifically regulated.

Nonrefundable fees

Wisconsin treats every payment a tenant gives as security as refundable, so a deposit cannot simply be labeled nonrefundable (Wis. Admin. Code ATCP 134.02(11), 134.06(3); Wis. Stat. §§ 704.28, 704.085). (Wis. Admin. Code ATCP 134.02(11) ('security deposit' = total of all payments given as security), Wis. Admin. Code ATCP 134.06(3), Wis. Stat. § 704.28(1)–(3), Wis. Stat. § 704.085 (credit-check fee up to $25), Wis. Admin. Code ATCP 134.05 (earnest money refunds))

Anything paid as security is a 'security deposit' that can be kept only for the items listed in § 704.28(1) or a signed NONSTANDARD RENTAL PROVISIONS document, never for normal wear and tear. Application-stage charges are capped: a credit-check fee may not exceed the landlord's actual cost up to $25 (none if the applicant supplies a report under 30 days old), and earnest money must be refunded by the next business day if the application is rejected or not approved in time.

Small-landlord exemptions

Wisconsin's deposit receipt, check-in and itemization rules in ATCP 134 do not reach certain rental types, such as rooms rented only to tourist or transient guests and units an employer provides to its on-site staff (Wis. Admin. Code ATCP 134.01). (Wis. Admin. Code ATCP 134.01)

ATCP 134.01 excludes transient hotel/motel/boarding-house rentals, institutional housing incidental to care or detention, fraternity-operated units, contract-for-deed buyers, free or employee housing for on-site staff, agricultural tenants and government-owned units. There is no exemption based on the number of units or on owner-occupancy.

Deposit alternatives and installments

Wisconsin has no law on deposit-replacement products, surety bonds or paying a deposit in installments, so any such option is a private arrangement (Wis. Stat. § 704.28; Wis. Admin. Code ATCP 134.06). (Wis. Stat. § 704.28 (no deposit-alternative provision), Wis. Admin. Code ATCP 134.06 (no deposit-alternative provision))