Overview
Wisconsin has detailed security deposit regulations governed by both state statute (Wis. Stat. § 704) and the Wisconsin Administrative Code (ATCP 134). While there is no specific dollar cap on deposits, the amount must be "reasonable," and landlords must follow strict procedures for documenting conditions, making deductions, and returning deposits.
This guide covers everything landlords and tenants need to know about security deposits in Wisconsin.
Deposit Limits
Wisconsin does not impose a specific dollar limit on security deposits. However, the deposit amount must be "reasonable." While the law does not define a precise threshold, excessively high deposits may be challenged as unreasonable.
Key rules regarding deposits in Wisconsin:
- No nonrefundable deposits: Wisconsin law prohibits landlords from labeling any security deposit as "nonrefundable." All deposits must be treated as potentially refundable.
- Separate nonrefundable fees: Landlords may charge separate nonrefundable fees (e.g., pet fees), but these cannot be called "security deposits"
- Check-in sheet: Landlords must provide a check-in sheet documenting the condition of the unit at the start of the tenancy
cite: Wis. Admin. Code ATCP 134.06
Allowable Deductions
Landlords may deduct from the security deposit for the following reasons:
- Unpaid rent: Any rent owed at the time of move-out
- Damage beyond normal wear and tear: Costs to repair tenant-caused damage to the property
- Utility charges: Unpaid utilities that are the tenant's responsibility under the lease
- Other lease obligations: Other charges specifically permitted by the rental agreement
What Constitutes Normal Wear and Tear?
Wisconsin law (ATCP 134) specifically prohibits deductions for normal wear and tear. Examples include:
Normal wear and tear:
- Minor scuffs and marks on walls from everyday living
- Small nail holes from hanging pictures
- Worn carpet from regular foot traffic
- Faded or lightly soiled paint
- Minor wear on appliances from regular use
Damage beyond normal wear and tear:
- Large holes in walls or doors
- Stained, burned, or torn carpet
- Broken windows, appliances, or fixtures
- Pet damage (scratches, stains, odors)
- Crayon or marker on walls
- Excessive filth requiring professional cleaning
cite: Wis. Admin. Code ATCP 134.06(3)
Return Timeline
Landlords must return the security deposit within 21 days of the tenant vacating the unit. The return must include:
- The remaining deposit amount (if any deductions were made)
- An itemized written statement listing each deduction and the amount charged
If the landlord fails to return the deposit or provide the required statement within 21 days, the tenant may sue for double the amount wrongfully withheld, plus court costs and reasonable attorney fees.
The tenant should provide the landlord with a forwarding address in writing to ensure timely return of the deposit.
cite: Wis. Admin. Code ATCP 134.06(2)
Pre-Move-Out Inspection
Wisconsin does not require a formal pre-move-out inspection by statute. However, the check-in/check-out sheet system provides a comparable framework:
- Check-in sheet: At the start of the tenancy, the landlord must provide a written check-in sheet documenting the condition of the unit. The tenant should review, note any existing damage, and keep a copy.
- Check-out process: At move-out, the landlord should compare the unit's condition to the check-in sheet to determine if any damage beyond normal wear and tear occurred.
Tenants should:
- Complete the check-in sheet thoroughly at move-in and retain a copy
- Take dated photos or video of the unit at both move-in and move-out
- Clean the unit thoroughly before vacating
- Request to be present during any move-out inspection
If the landlord fails to provide a check-in sheet, the landlord's ability to make deductions may be limited.
cite: Wis. Admin. Code ATCP 134.06(1)
Dispute Resolution
If a tenant believes their deposit was wrongfully withheld, they can:
- Send a demand letter to the landlord requesting the return of the deposit with a detailed explanation of the dispute
- File a complaint with the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP), which enforces ATCP 134
- File a claim in Small Claims Court (up to $10,000 in Wisconsin)
- Seek legal counsel for disputes exceeding the small claims limit
Courts may award the tenant double the amount wrongfully withheld as damages if the landlord failed to act in good faith. The court may also award reasonable attorney fees and court costs to the prevailing tenant.