ATCP 134 - RESIDENTIAL RENTAL PRACTICES
If you are a landlord, are you familiar with ATCP 134? If not, you definitely need to be. ATCP 134 is a chapter of the Wisconsin Administrative Code that applies to residential rental practices. Although these rules were updated in 1998, many well-intentioned landlords still don't know their provisions or the serious consequences that can result if you fail to follow them.
The most overlooked, and most litigated, rule is ATCP 134.06(2), which governs the return of a tenant's security deposit. This rule states that a landlord shall return a tenant's security deposit within 21 days after the tenant surrenders the premises. This applies whenever the tenant leaves your unit, whether at the end of the rental period or as a result of eviction.
If the tenant damaged the premises or owes back rent, you may deduct those amounts from the tenant's security deposit; however, you must still send the 21-day letter showing the itemized deductions. You must send the security deposit and/or 21-day letter to the tenant's forwarding address or, if that was not provided, to the tenant’s last known address.
The consequences for a landlord who fails to follow these rules are severe. Together, ATCP 134 and the Wisconsin Statutes allow a tenant to sue a landlord who fails to return the security deposit or mail the 21-day letter to the tenant within the 21-day time period, for double the amount of the security deposit, together with the costs of the lawsuit and the tenant's reasonable attorney's fees. Yes, that is correct: the same tenant you were forced to evict for failing to pay rent or for disturbing neighbors by playing music too loudly can now come back and sue you. Adding insult to injury, besides receiving a damages judgment against you, the landlord, you will also have to pay the fees of the lawyer your ex-tenant hired to sue you.
If you are a landlord and are unaware of the residential practice rule above or unfamiliar with ATCP 134 in general, I urge you to become knowledgeable before you get mired in such a situation.
