Security deposits in Wisconsin are regulated by Wisconsin Statutes, Chapter 704 and Wisconsin Administrative Code, Chapter ATCP 134. Certain municipalities may have local laws that supplement state regulations. To ensure full compliance, verify the regulations applicable in your area.

KEY POINTS AT A GLANCE: Wisconsin

Deposit Cap: No

Holding Requirements: No

Interest Required: No

‍Return Window: 21 days

COLLECTION & HOLDING REQUIREMENTS

Deposit Cap: Wisconsin state law does not currently have a limit on the amount that landlords/property managers can require as a security deposit.

Holding Requirements: Wisconsin state law does not currently require security deposits to be held in a bank account within the state, in a separate account, or in an interest-bearing account.

Information Provided to Tenant: Wisconsin state law does not currently require landlords/property managers to disclose where the security deposit is held.

‍Interest on Deposits: Wisconsin state law does not currently require landlords/property managers to pay interest to tenants on security deposits.

RETURN

Timeline: The landlord/property manager must either (1) return the full security deposit to the tenant or (2) provide the tenant with a written statement itemizing any deductions to the security deposit, together with the portion of the security deposit being returned, within 21 days of the following:

1. if the tenant vacates the premises on the termination date of the lease, the date on which the lease terminates.
2. if the tenant vacates the premises or is evicted before the termination date of the lease, the date on which the tenant’s lease terminates or, if the landlord re-rents the premises before the lease terminates, the date on which the new tenancy begins.
3. if the tenant vacates the premises or is evicted after the termination date of the lease, the date on which the landlord/property manager learns that the tenant has vacated or been removed from the premises.

Documentation of Deductions: The itemized written statement provided to the tenant must describe each item of physical damage to the premises and any other deductions to the security deposit, and include the amounts withheld as reasonable compensation for each item.

Permissible Deductions: Landlords/property managers may deduct the following from security deposit funds:

• Unpaid rent or utilities
• Damages beyond normal wear and tear
• Unpaid monthly municipal permit fees assessed against the tenant by a local unit of government under Wisconsin Statutes § 66.0435(3).

‍Penalties: Failure to return the security deposit or provide the written statement of deductions as required may result in the landlord/property manager being liable for up to 2x the amount wrongfully withheld from the tenant, plus attorney’s fees and court costs if the tenant wins in a lawsuit.