Most residential landlords require tenants to pay a security deposit to cover any repairs needed when the tenant moves out, or to cover the tenant’s failure to pay the last month's rent.
Laws vary from state to state, but many states have statutes that provide the maximum amount of security deposit a landlord may require for a residential lease and the costs for which the landlord may use the security deposit (cleaning, repairs, unpaid rent) following termination of the lease.
These laws also provide a specific deadline (often 30-60 days) for the landlord to return the tenant’s security deposit following termination of the lease—after deducting any amount properly withheld, as allowed by law.
In Wisconsin, landlords can require tenants to pay a security deposit, which is often used to cover potential damages to the property, cleaning costs, or unpaid rent. Wisconsin law does not set a statutory limit on the amount a landlord can charge for a security deposit. However, the law does regulate the handling of these deposits. Landlords must return the security deposit within 21 days after the tenant vacates the premises. Deductions from the security deposit must be itemized and detailed in writing if they exceed $25. Landlords are allowed to withhold amounts for unpaid rent, damages beyond normal wear and tear, and other breaches of the lease agreement. If the landlord fails to return the deposit within the required timeframe or improperly withholds any portion of it, the tenant may have legal recourse to recover the deposit plus damages and attorneys' fees.