ATCP 134.05(3)(a)(a) A landlord may withhold from a properly accepted earnest money deposit if the prospective tenant fails to enter into a rental agreement after being approved for tenancy, unless the landlord has significantly altered the rental terms previously disclosed to the tenant.

ATCP 134.05(3)(b)(b) A landlord may withhold from an earnest money deposit, under par. (a), an amount sufficient to compensate the landlord for actual costs and damages incurred because of the prospective tenant’s failure to enter into a rental agreement. The landlord may not withhold for lost rents unless the landlord has made a reasonable effort to mitigate those losses, as provided under s. 704.29, Stats.

ATCP 134.05 NoteNote: See Pierce v. Norwick, 202 Wis. 2d 588 (1996), regarding the award of damage claims for failure to comply with provisions of this chapter related to security deposits. The same method of computing a tenant’s damages may apply to violations related to earnest money deposits.

ATCP 134.05(4)(a)(a) Except as provided under par. (b), a landlord may require a prospective tenant to pay the landlord’s actual cost, up to the amount specified in s. 704.085 (1) (a), Stats., to obtain a consumer credit report on the prospective tenant from a consumer reporting agency that compiles and maintains files on consumers on a nationwide basis. The landlord shall notify the prospective tenant of the charge before requesting the consumer credit report, and shall provide the prospective tenant with a copy of the report.

ATCP 134.05(4)(b)(b) A landlord may not require a prospective tenant to pay for a consumer credit report under par. (a) if, before the landlord requests a consumer credit report, the prospective tenant provides the landlord with a consumer credit report, from a consumer credit reporting agency that compiles and maintains files on consumers on a nationwide basis that is less than 30 days old.

ATCP 134.05 HistoryHistory: Cr. Register, February, 1980, No. 290, eff. 5-1-80; reprinted to correct error in (1) (a), Register, March, 1984, No.339; r. and recr., Register, December, 1998, No 516, eff. 1-1-99; CR 20-033: am. (4) (a) Register October 2021 No. 790, eff. 11-1-21; correction in (4) (a) made under s. 35.17, Stats., Register October 2021 No. 790.

ATCP 134.06(1)(a)(a) Before a landlord accepts a security deposit, or converts an earnest money deposit to a security deposit under s. ATCP 134.05, the landlord shall notify the tenant in writing that the tenant may do any of the following by a specified deadline date which is not less than 7 days after the start of tenancy:

ATCP 134.06(1)(a)2.2. Request a list of physical damages or defects, if any, charged to the previous tenant’s security deposit. The landlord may require the tenant to make this request, if any, in writing.

ATCP 134.06(1)(b)(b) If a tenant makes a request under par. (a) 2., the landlord shall provide the tenant with a list of all physical damages or defects charged to the previous tenant’s security deposit, regardless of whether those damages or defects have been repaired. The landlord shall provide the list within 30 days after the landlord receives the request, or within 7 days after the landlord notifies the previous tenant of the security deposit deductions, whichever occurs later. The landlord may explain that some or all of the listed damages or defects have been repaired, if that is the case. The landlord need not disclose the previous tenant’s identity, or the amounts withheld from the previous tenant’s security deposit.

ATCP 134.06(2)(2) Returning security deposits. A landlord shall deliver or mail to a tenant the full amount of any security deposit paid by the tenant, less any amounts that may be withheld under sub. (3), within 21 days after any of the following:

ATCP 134.06(2)(a)(a) If the tenant vacates the premises on the termination date of the rental agreement, the date on which the rental agreement terminates.

ATCP 134.06(2)(b)(b) If the tenant vacates the premises or is evicted before termination date of the rental agreement, the date on which the tenant’s rental agreement terminates or, if the landlord rerents the premises before the tenant’s rental agreement terminates, the date on which the new tenant’s tenancy begins.

ATCP 134.06(2)(c)(c) If the tenant vacates the premises or is evicted after the termination date of the rental agreement, the date on which the landlord learns that the tenant has vacated the premises or has been removed from the premises under s. 799.45 (2), Stats.

ATCP 134.06 NoteNote: A rent payment in excess of one month’s prepaid rent is considered a “security deposit” as defined under s. ATCP 134.02 (11). This chapter does not prevent a landlord from collecting more than one month’s prepaid rent. However, if the landlord holds any rent prepayment in excess of one month’s prepaid rent when the tenant surrenders the premises, the landlord must treat that excess as a “security deposit” under sub. (2).

ATCP 134.06 NoteNote: See Pierce v. Norwick, 202 Wis. 2d 588 (1996), regarding the award of damage claims for failure to comply with provisions of this chapter related to security deposits and earnest money deposits.

ATCP 134.06(3)(a)(a) Standard withholding provisions. When a landlord returns a security deposit to a tenant after the tenant vacates the premises, the landlord may withhold from the full amount of the security deposit only amounts reasonably necessary to pay for any of the following:

ATCP 134.06(3)(a)3.3. Payment that the tenant owes under the rental agreement for utility service provided by the landlord but not included in the rent.

ATCP 134.06(3)(a)4.4. Payment that the tenant owes for direct utility service provided by a government-owned utility, to the extent that the landlord becomes liable for the tenant’s nonpayment.

ATCP 134.06(3)(a)5.5. Unpaid monthly municipal permit fees assessed against the tenant by a local unit of government under s. 66.0435 (3), Stats., to the extent that the landlord becomes liable for the tenant’s nonpayment.