Overview
Wisconsin security deposit laws are governed by Wisconsin Administrative Code ATCP 134. Wisconsin has some of the most detailed tenant protection laws in the country, including mandatory move-in checklists, strict limitations on deductions, and required nonstandard provision disclosures. Failure to comply can result in double damages. Passive's deposit management platform helps landlords navigate these detailed requirements.
Maximum Security Deposit
Wisconsin does not set a statutory limit on security deposit amounts, as long as the amount is not charged in a discriminatory manner.
What Counts as a Security Deposit
Under ATCP 134, "security deposit" includes the total of all payments given as security, including:
- Pet deposits
- Key deposits
- Furniture deposits
- Prepaid rent (any amount exceeding one month)
Most Wisconsin landlords charge one to two months' rent.
Return Timeline
Landlords must return any remaining portion of the security deposit and an itemized statement of deductions within 21 days after the tenant vacates or is evicted.
- Must include an itemized statement listing all deductions
- The remaining balance must be delivered within this same period
Consequences of Late Return
Failure to return the deposit within 21 days may result in double damages and legal fees being awarded to the tenant.
Interest Requirements
Wisconsin does not require landlords to pay interest on security deposits unless specifically agreed upon in the lease.
Storage Requirements
- Deposits must be held in a trust account separate from the landlord's personal funds
- The account does not need to be interest-bearing
- If the deposit is paid in cash, the tenant must receive a receipt
Move-In Checklist Requirement
Wisconsin requires landlords to provide a move-in checklist: (Minnesota takes a similar approach—see Minnesota security deposit laws.)
- Landlords must offer a check-in sheet to the tenant
- Tenants have 7 days to inform the landlord of any pre-existing damages or defects
- Failure to provide a checklist limits the landlord's ability to make deductions
Nonstandard Rental Provisions
Wisconsin has unique requirements for "nonstandard" lease terms:
- Any lease provisions authorizing deductions beyond the standard allowable deductions must be disclosed separately
- Must be provided in a separate document titled "NONSTANDARD RENTAL PROVISIONS"
- The landlord must specifically identify each nonstandard provision before the tenant signs the lease
- Landlords cannot charge liquidated damages (random fees) even if listed in nonstandard provisions
Allowable Deductions
Landlords may deduct from the security deposit for:
- Unpaid rent
- Damages beyond normal wear and tear
- Other charges specified in the lease (with nonstandard provision disclosure)
Important: Landlords cannot withhold any amount for normal wear and tear, or for damages the tenant cannot reasonably be held responsible for under applicable law.
Penalties for Non-Compliance
Wisconsin has strong penalties for violations:
- If a court finds the landlord violated security deposit laws, the tenant may be awarded twice the amount of their damages
- Plus court costs and reasonable attorney's fees
Common Compliance Questions
What counts as "normal wear and tear"?
Normal wear and tear includes minor scuffs on walls, slightly worn carpet in high-traffic areas, small nail holes from hanging pictures, and faded paint from sunlight. It does not include large holes in walls, stained or burned carpet, broken fixtures, or damage from pets. When in doubt, document the condition at move-in with dated photos.
How should I document the unit's condition?
Complete a detailed move-in checklist with the tenant, noting existing damage, appliance conditions, and overall cleanliness. Take timestamped photos or video of every room. At move-out, repeat the process. This documentation protects both parties and makes deduction decisions defensible if disputed. Schedule a demo to see how Passive handles move-in checklists automatically.
Can I deduct for unpaid utility bills?
Only if your lease specifically allows it and the utilities are in your name. If utilities are in the tenant's name, contact the utility company directly—they have their own collection processes. Never make unauthorized deductions, even for amounts you believe the tenant owes.