Security Deposit Law
What Wisconsin landlords must do with security deposits — the cap, interest, return deadline, account rules, and penalties — with citations to the statute itself.
Verified as of June 11, 2026
This page is general information, not legal advice. Statutes change — verify with the cited sources or an attorney.
Deposit cap
No statutory limit on security deposit amount.
Interest
No interest required, and municipalities are barred from requiring it.
Return deadline
21 days, measured from a statutorily defined trigger date.
Neither Wis. Stat. § 704.28 nor Wisconsin's residential rental practices rule (ATCP ch. 134) caps how much a landlord may collect. Note the broad definition: a 'security deposit' is 'the total of all payments and deposits given by a tenant to the landlord as security for the performance of the tenant's obligations, and includes all rent payments in excess of 1 month's prepaid rent' — so collecting first and last month's rent makes the 'last month' part of the regulated deposit.
State law contains no interest requirement, and Wis. Stat. § 66.0104(2)(b) preempts local rules: 'No city, village, town, or county may enact an ordinance that places requirements on a residential landlord with respect to security deposits or earnest money or pretenancy or posttenancy inspections that are additional to the requirements under administrative rules related to residential rental practices.'
The 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,' within 21 days after: (a) the rental agreement's termination date if the tenant vacates on that date; (b) if the tenant vacates or is evicted early, the date the agreement terminates or, if the landlord re-rents sooner, the date the new tenant's tenancy begins; or (c) if the tenant vacates or is evicted after the termination date, the date the landlord learns the tenant vacated or was removed. If any amount is withheld, ATCP 134.06(4) requires delivering or mailing 'a written statement accounting for all amounts withheld' describing each damage item or claim and the amount.
Neither Wis. Stat. § 704.28 nor ATCP 134.06 requires deposits to be held in a separate, segregated, or interest-bearing account; the obligations are about disclosure at move-in, limited withholding, and the 21-day return with itemized accounting.
ATCP ch. 134 (including the deposit return and itemization rules) is an order issued under Wis. Stat. § 100.20, and § 100.20(5) provides that any person suffering pecuniary loss from a violation 'may sue for damages therefor in any court of competent jurisdiction and shall recover twice the amount of such pecuniary loss, together with costs, including a reasonable attorney fee.' For a wrongfully withheld deposit, that means twice the withheld amount plus the tenant's attorney fees.
None possible: Wis. Stat. § 66.0104(2)(b) preempts local action — 'No city, village, town, or county may enact an ordinance that places requirements on a residential landlord with respect to security deposits or earnest money or pretenancy or posttenancy inspections that are additional to the requirements under administrative rules related to residential rental practices.' Madison's former deposit-interest ordinance regime is preempted; statewide rules (Wis. Stat. § 704.28 + ATCP ch. 134) apply uniformly.
Before accepting a security deposit (or converting earnest money), the landlord must notify the tenant in writing that, by a deadline 'not less than 7 days after the start of tenancy,' the tenant may inspect the unit and note preexisting damage, and may request 'a list of physical damages or defects, if any, charged to the previous tenant's security deposit.'
Section 704.28(1) limits withholding to 'amounts reasonably necessary to pay for': tenant damage/waste/neglect, unpaid rent, tenant-owed utility charges under the rental agreement, government-owned utility charges the landlord becomes liable for, and unpaid municipal permit fees under s. 66.0435(3). Anything else requires a nonstandard rental provision.
Withholding for reasons beyond the statutory list requires nonstandard provisions 'provided to the tenant in a separate written document entitled "NONSTANDARD RENTAL PROVISIONS"' that the landlord specifically identifies with the tenant before lease signing; the tenant's signature or initials next to each provision creates a rebuttable presumption of agreement.
'This section does not authorize a landlord to withhold any amount from a security deposit for normal wear and tear, or for other damages or losses for which the tenant cannot reasonably be held responsible' — stated in both the statute and the administrative rule, and it cannot be contracted around with a nonstandard provision.
Deliver or mail the deposit (less lawful withholdings) within 21 days of the statutory trigger date, and if anything is withheld, include a written statement that 'shall describe each item of physical damages or other claim made against the security deposit, and the amount withheld.'
The deposit definition 'includes all rent payments in excess of 1 month's prepaid rent,' so 'last month's rent' collected up front is regulated as security deposit money subject to the 21-day return and accounting rules.
Both § 704.28(3) and ATCP 134.06(3)(c) flatly prohibit it; the tenant can recover double the wrongfully withheld amount plus costs and attorney fees under § 100.20(5).
The trigger date moves: early vacate/eviction can start the clock when a new tenant's tenancy begins; a holdover starts it when the landlord learns the tenant vacated or was removed. Mailing late is a violation exposing you to double damages and the tenant's attorney fees.
Deductions outside § 704.28(1)(a)-(e) are lawful only via a separate document titled 'NONSTANDARD RENTAL PROVISIONS' specifically identified with the tenant before signing; without it the withholding is unauthorized and double-damages bait.
ATCP 134.06(1)(a) requires written notice of the tenant's inspection rights and right to the previous tenant's deduction list before you accept the deposit; skipping it is an independent rule violation under the double-damages regime.
Any withholding must come with a written accounting describing 'each item of physical damages or other claim made against the security deposit, and the amount withheld' — a bare partial refund violates ATCP 134.06(4).
21 days. The clock usually starts on the lease termination date if the tenant leaves on time; if the tenant leaves early it can start when a new tenant's tenancy begins, and if the tenant holds over it starts when you learn they vacated or were removed. Deliver or mail the deposit, with an itemized statement for any withholding, by day 21.
No statutory cap. But be careful: Wisconsin defines the deposit to include 'all rent payments in excess of 1 month's prepaid rent,' so collecting last month's rent up front makes that money part of the regulated security deposit.
Amounts reasonably necessary for tenant damage, waste, or neglect; unpaid rent; tenant-owed utility charges under the lease; government-owned utility charges you become liable for; and unpaid municipal permit fees. Anything else requires a signed 'NONSTANDARD RENTAL PROVISIONS' document agreed to before the lease. Normal wear and tear is never deductible.
Wisconsin's rental practices rules are enforced through Wis. Stat. § 100.20(5): a tenant who suffers pecuniary loss can sue and 'shall recover twice the amount of such pecuniary loss, together with costs, including a reasonable attorney fee.' In practice that means double the wrongfully withheld amount plus the tenant's legal fees.
No. State law requires neither, and Wis. Stat. § 66.0104(2)(b) prohibits cities, villages, towns, and counties from adding their own security deposit requirements, so no Wisconsin municipality can impose an interest or escrow rule.
Before accepting the deposit you must tell the tenant in writing that, by a deadline at least 7 days after the start of tenancy, they may inspect the unit and report preexisting damage, and may request the list of damages charged to the previous tenant's deposit. If they request that list, you must provide it within 30 days of the request (or within 7 days after notifying the previous tenant of their deductions, whichever is later).
This page is general information, not legal advice. Statutes change — verify with the cited sources or an attorney.
Statute facts on this page were verified against the cited official sources on June 11, 2026.
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