Tristan’s Landlord-Tenant Law Blog

COVID-19 Tristan R. Pettit, Esq. COVID-19 Tristan R. Pettit, Esq.

GUEST POST: What Are Landlords Supposed To Do In This Age of COVID-19?

This is a guest post by Atty. Jennifer Hayden of Petrie + Pettit S.C.Updated on 3-24-20What the H*ll Are We Supposed to Do Now?We honestly have no idea. We are in uncharted waters. But we do know that under the shelter of each other, we all survive.These are our current suggestions based on the ever-changing information we are being provided with. Please let us know your thoughts, comments and ...

This is a guest post by Atty. Jennifer Hayden of Petrie + Pettit S.C.

Updated on 3-24-20


What the H*ll Are We Supposed to Do Now?

We honestly have no idea. We are in uncharted waters. But we do know that under the shelter of each other, we all survive.

These are our current suggestions based on the ever-changing information we are being provided with. Please let us know your thoughts, comments and suggestions below.

Daily Operations – Keep it Sane and Clean

With prospective tenants, handle everything possible by e-mail or mail. If you have to meet them in person, follow the CDC recommendations and gloves, hand sanitizer and social distancing. You can ask prospective tenants if they have cold or flu symptoms (as long as you ask every prospective tenant the same question) and decline to show them a unit if they confirm. If a current tenant informs you that they are not willing to allow prospective tenants into their unit while they are residing in it based on health concerns, we suggest you abide by that request. Similarly, if a current tenant is self-isolating or quarantining, his or her unit should not be shown to prospective tenants.

UPDATE: The City of Milwaukee Order from the Commissioner of Health prohibits a landlord or rental property manager from entering a leased residential rental premises unless a maintenance emergency exists, effective at 12:01 a.m. on March 25, 2020. Although we don’t have much guidance on the specific interpretation of these orders and later language suggests that real estate services are a professional service and an essential business, the specific language regarding entry into an apartment with a residential tenant to show the apartment to prospective tenants gives me pause.

If you haven’t done so already, immediately implement cleaning and sanitizing recommendations set forth by the Center for Disease Control and Prevention (“CDC”) for all public areas. You may wish to consider closing or restricting access to any non-essential public areas such as community rooms or fitness centers. Although this could theoretically give rise to a claim for rent abatement or that you breached a tenant’s lease, given the circumstances and the forced closure of other businesses, it is a defensible position.

Communicate regularly with current tenants to keep them informed and confident that you are following the recommendations of the CDC and any applicable orders from government entities or agencies.

Unpaid Rent

Consider instituting a consistent deferment or repayment plan for tenants who contact you and inform you they may not be able to make rental payments due to a COVID-19 related layoff or job loss.

Mediate Milwaukee has informed us that they will be continuing to perform mediations for free and by phone.

You can continue to issue notices for the non-payment of rent. As you saw in Tristan’s prior blog posts, most counties have restricted eviction actions in some capacity but are still accepting filings. Whether it is ultimately faster to file now and potentially have the case adjourned or to wait until the courts are holding hearings again and then file depends on the exact timing of any adjournments and how the court handles new filings once the court has resumed its normal practice. We have been getting notice that previously scheduled hearings in Milwaukee County are now being adjourned into June.

You should continue to issue notices for non-rent breaches, particularly those related to behavioral issues or conflicts between tenants. As more and more people are going to be home all day, we do expect to see some increases in these issues. Though you ultimately will not be able to proceed with an eviction action for some time, having issued notices will put you in the best position to proceed once you are able to do so.

What if a Tenant has COVID-19?

This one is tricky. This is our current advice. Its probably subject to change as this situation continues to evolve.

1. In general, a tenant is not required to inform his or her landlord if the tenant has tested positive for COVID-19 or has been exposed to it. As a result, landlords should not ask tenants if they have tested positive for COVID-19 or have been exposed to it, or the landlord may be violating privacy laws.

2. However, if a tenant requests that maintenance or staff come into their unit, you can confirm whether there is a anyone in the unit with cold or flu-like symptoms so that your staff can take necessary precautions.

3. If you have a confirmed or suspected case of COVID-19 at your property, you should notify your local public health department immediately for guidance and next steps on communicating with tenants.

4. If you have learned that a tenant is self-isolating/quarantining, you must respect the quarantine and take reasonable steps to respond. It is reasonable to send a notification to your staff that they should not enter the tenant’s unit without a manager’s approval.

5. If you believe that a tenant has tested positive or been exposed to the virus, you should put your pandemic plan into action.

We will continue to update these posts as this situation develops. Please feel free to let us know your thoughts and tips for navigating these new challenges.

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Evictions, COVID-19 Tristan R. Pettit, Esq. Evictions, COVID-19 Tristan R. Pettit, Esq.

Update On Court Closures and Related Issues Pertaining to COVID-19 - UPDATED 3-19-20

UPDATED ON 3-19-20Here is the latest on the court closures - Milwaukee CountyMost of my firm’s pending eviction cases in Milwaukee County have been rescheduled for mid to late April.The Milwaukee County Sheriff is no longer executing any writs that were previously filed and they are no longer accepting the filing of any new writs.  So, if your tenant is still living in the unit they will be allowed to do ...


UPDATED ON 3-19-20


Here is the latest on the court closures - 

Milwaukee County

Most of my firm’s pending eviction cases in Milwaukee County have been rescheduled for mid to late April.

The Milwaukee County Sheriff is no longer executing any writs that were previously filed and they are no longer accepting the filing of any new writs.  So, if your tenant is still living in the unit they will be allowed to do so until at least April 3rd,  unless they voluntarily move out. The Sheriff could not provide me with a date that they would resume executing writs.

Waukesha County

The Waukesha County Chief Judge also signed an Order Regarding Emergency Temporary Measures that affects all court appearances – including evictions --- and  accompanying guidelines which became effective as of March 13th.  Essentially the guidelines state that all contested matters requiring in-person appearances, including small claims, and any hearing where evidence will be taken by other than telephonic means (including all de novo hearings) are suspended until April 12, 2020. Clerks in the individual branches will schedule these proceedings as the Court’s calendar permits.  You should contact the clerk directly.  Any hearing that can be done by phone will proceed as scheduled, included but not limited to stipulated divorces, name changes, scheduling conferences, status conferences, motion hearings.  These are guidelines only; if any party has questions regarding scheduling with a specific court, they should contact the branch directly for guidance.  My firm has an initial appearance on an eviction scheduled for Monday and it is still on and we are appearing by phone. So it appears that Waukesha Co. will still accept new eviction filings.

Washington County

Washington County does not have any Emergency Temporary Order in place for COVID-19 but my firms was contacted by a Washington County court in which we have pending eviction matters and advised us that they were going to be adjourned until April 13th. We were told that the individual judges were each handling their pending calendars and cases as they saw fit.

Mediation

I was contacted by Mediate Milwaukee after they read my last blog post on COVID 19 and they indicated that they could be of assistance to landlords while the courts are shut.  They indicated that most of their landlord tenant mediation occurs via telephone with supplemental communication via email.  If you are interested in working out an informal resolutions with your tenant they may be of assistance to you.  If interested please contact Amy Holtz, Executive Director of Metro Milwaukee Mediation Services, Inc., at 414-939-8800 or amy@mediatemilwaukee.com

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Evictions, COVID-19 Tristan R. Pettit, Esq. Evictions, COVID-19 Tristan R. Pettit, Esq.

Milwaukee County Orders Emergency Temporary Orders Closing Eviction Court Due to COVID-19 Pandemic.

Well this has certainly been an “interesting” few days . . . and I assume that it will continue for the unknown future.  I know that I have seen more empty store shelves devoid of toilet tissue, Kleenex, and paper towels than I ever have before.  I’m sure that you have all been inundated with emails from your bank, vet, accountant, favorite restaurant and more, about COVID-19 and what changes ...


Well this has certainly been an “interesting” few days . . . and I assume that it will continue for the unknown future.  I know that I have seen more empty store shelves devoid of toilet tissue, Kleenex, and paper towels than I ever have before.  I’m sure that you have all been inundated with emails from your bank, vet, accountant, favorite restaurant and more, about COVID-19 and what changes are being made by those businesses in an attempt to mitigate the spread of the pandemic.  Well you can consider this blog post to be your email from your friendly Landlord-Tenant Law Attorney.

Effective today, March 16th, the Chief Judge in Milwaukee County ordered that all small claims court appearances, which include evictions, are suspended until after April 3, 2020, or until further Order of the Court.  Any court dates scheduled prior to April 3, 2020 will be rescheduled by the clerk and written notice will be sent out to the parties.

The Order goes on to say that no one may appear in person for any small claims hearing between now and April 3, 2020 or until further Order of the Court, unless it is an emergency matter, which has been approved by the judge or court commissioner.  The Court’s Guidance memo states that an emergency matter would be limited to such things as a Tenant’s request for stays of writs.

I have learned that the filing of an affidavit of default on a Stipulated Dismissal of an Eviction, when the tenant does not follow through on what they agreed to, is NOT considered to be an “emergency matter.”

Here is a copy of the Order and the attached guidelines for your review.

What does this mean to a landlord needing to file an eviction?

Well, while you are not precluded from drafting and serving notices terminating a tenancy and you are not precluded from drafting and serving an eviction lawsuit there are some practical matters with regard to the service of the eviction that may pose some concerns.

Wisconsin eviction law states that in eviction actions, the return date for a summons served upon a resident of Wisconsin shall be not less than 5 days nor more than than 25 days from the issue date, and service shall be made not less than 5 days prior to the return date. Wis. Stat. § 799.05(3)(b).

Most likely this pandemic and the restrictions enacted as a result will get worse before they get better.  I anticipate that the Emergency Temporary closure of the courts will be extended beyond April 3rd.  While I hope that I am wrong, I don’t think that I will be.

So let’s say that you plan on filing your eviction within the next 3 weeks and set the return date for April 6th for instance, what will happen if the court extends the closure until April 15thor April 30th?  Well, should the Court end up extending the Emergency Temporary Orders the Court it will have to adjourn your return date until whenever the Emergency Orders might be terminated.  Since we have no crystal ball, neither you nor I know when that will be.  Likely, if that happens, you will need to file an Amended Eviction Summons and reserve it so as to comply with the service requirements of Wis. Stat. § 799.05(3)(b) set forth above.  The result being that you would incur another service of process fee and your eviction would not get into court any sooner..

As I see it, a landlord or property manager has one of three options.  The first option is to file the eviction prior to April 3, 2020 and hope that they Emergency Orders are not extended, but if they are you will need to be prepared to file an Amended Summons and incur another service fee.  The second option would be to hold off on filing the eviction until the Emergency Temporary Orders have ended, whenever that will be.  The third option is to try and informally work with your tenant to come up with a resolution that works for both of you.

None of the options are ideal.  Whether or not a tenant pays their rent doesn’t affect the landlord’s obligation to pay its mortgage.  And if the tenant is engaging in a non-rent breach that is affecting the quiet use and enjoyment of the premises by other tenants, any further delay is certainly not a good option for the landlord or the other tenants.  Can you and the tenant arrive at a solution that works for both of you until the pandemic ends and the courts reopen?  I don’t know the answer to this question, but it appears that we are entering a brave new world, and we will need to be creative in order to survive.

Good luck and stay healthy.

T

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Census Tristan R. Pettit, Esq. Census Tristan R. Pettit, Esq.

Landlords Are Allowed, and Even Required, To Provide Answers To A Census Taker About Their Tenants

With the census fast approaching, I have been getting many questions from clients as to whether or not they must provide census workers with information about their tenants.The short answer to the question is "yes."   If a census taker has attempted to contact and obtain answers to the census questions from your tenant, and been unable to do so, the census taker is allowed to, and in fact is required to, contact the ...

With the census fast approaching, I have been getting many questions from clients as to whether or not they must provide census workers with information about their tenants.

The short answer to the question is "yes."   If a census taker has attempted to contact and obtain answers to the census questions from your tenant, and been unable to do so, the census taker is allowed to, and in fact is required to, contact the landlord or manager of the rental property to obtain the requested information about your tenant.

Typically, providing personal information about your tenant to a third party is not something that you want to do unless you enjoy being sued ; )  But providing a census worker with the answers to the questions regarding your tenants is one of the few exceptions to this rule.   The Department of Commerce has clearly stated that landlords and property managers of rental property will not be in violation of any privacy laws if they provide the requested information about their tenants to the census taker.  In fact, if a landlord refuses to provide the census worker with the requested information about his/her tenants, s/he may be fined up to $500.

The applicable law is found at Title 13 of the Code of Federal Regulations (CFR), Chapter 7, Subchapter II, Sections 221 and 223.

If you just clicked on the above links and attempted to read the two code sections . . . you are a glutton for punishment. The code sections are difficult to read,yet alone understand, and are full of legalese.  I have attempted to summarize the key parts of code sections for you below.

1.   If a census taker is unable to contact the tenant and obtain the census info from the tenant, then the landlord or manager must assist the census employee in answering the census questions regarding their tenants.

2.   The landlord or manager may ask to see the census workers identification before divulging any information.

3.   The first question that the census worker will ask is whether or not the apartment unit was occupied on April 1, 2020.

4.   If the unit was not occupied by anyone on April 1, 2020, then the census worker's questions for you should be done.

5.   Assuming that the unit was occupied on April 1, 2020, then you should provide the census worker with answers to as many of the census questions as possible.  You are not supposed to guess - if you don't know the answer, just say so.

6.   You are not breaking any privacy laws by answering the census taker's questions about your tenants.

7.   You may be fined up to $500 for failing to provide the census taker with the requested information.

In summary, if the census taker is unable to reach your tenant and/or obtain answers to the questions on the census questionnaire form, then you as the landlord or manager are required to assist the census taker by providing him or her with any information that you know.  Failure to do so may result in a $500 fine.

After you are done answering the census taker's questions about your tenant, you may want to talk to your tenant about how important it is to complete their census questionnaire next time -- in part so that you don't have to spend your limited time, doing your tenant's work for him/her ; )

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Assistance Animals Tristan R. Pettit, Esq. Assistance Animals Tristan R. Pettit, Esq.

HUD Issues It's Guidance Memo Regarding How To Evaluate A Tenant/Applicant's Request for An Assistance Animal But Fails to Provide Much Clarity

On January 28, 2020 HUD published its Memorandum/Notice on how best to assess a tenant/applicant’s request to keep an assistance animal as a reasonable accommodation under the Fair Housing Act.You can find the entire memorandum here.HUD had been promising for months to publish a notice/memorandum that would provide landlords with some clarity when it came to health care provider letters purchased online to support a tenant’s request to ...

On January 28, 2020 HUD published its Memorandum/Notice on how best to assess a tenant/applicant’s request to keep an assistance animal as a reasonable accommodation under the Fair Housing Act.

You can find the entire memorandum here.

HUD had been promising for months to publish a notice/memorandum that would provide landlords with some clarity when it came to health care provider letters purchased online to support a tenant’s request to keep an assistance animal.  I know that I was looking forward to HUD’s memo and some much-needed clarity.

Needless to say, I was disappointed, as were other attorneys and commentators that have blogged about HUD’s latest guidance.  The memorandum really does not provide any clarity whatsoever.  While HUD does acknowledge that letters purchased on the internet are not reliable evidence of a disability or a disability-related need for an ESA -- “In HUD’s experience, such documentation from the internet is not, by itself, sufficient to reliably establish that an individual has a non-observable disability or disability-related need to an assistance animal” --- housing providers have known that for years.

In fact, HUD states that it is providing this memo as guidance to help landlords distinguish between a person with a non-obvious disability who has a legitimate need for an assistance animals and a person without a disability, who simply wants to have a pet or avoid the costs and limitations imposed by landlords’ pet policies, such as pet fees or deposits.  But after I finished reading the 19 pages, I did not come across anything new or helpful that helps me or my clients make that distinction.   

Much of the information in the memorandum has been published before and therefore is not new.  Much of the memo quotes from the Joint Statement from DOJ and HUD on Reasonable Accommodations which was published back in 2004.

I encourage everyone to read the entire memo.  Rather than regurgitate everything in the memo I have chosen to select certain passages or language that I found interesting, informative and/or controversial.

  1.  FHA complaints concerning the denial of reasonable accommodations and disability access comprise 60% of all FHA complaints.
  2. Landlords should not reassess request for reasonable accommodations that were granted prior to the issuance of this HUD guidance memo.
  3. HUD’s memo does not expand or alter a landlord’s obligations under the Fair Housing Act (FHA) or HUD’s implementing regulations.
  4. Landlords may not deny a RA request on the grounds that the tenant/applicant has not yet provided the information until they have been provided a “reasonable opportunity to do so.”
  5. Besides information from a health care provider, the following can be used as confirmation of a disability:(1) A determination of disability from a federal, state or local government agency;(2) Receipt of disability benefits or services; (3) Eligibility for housing assistance or a housing voucher received because of disability.
  6. Some types of impairments will, in virtually all cases, be found to result in a determination of a disability such as deafness, blindness, intellectual disabilities, partially or completely missing limbs or mobility impairments requiring the use of a wheelchair, autism, cancer, cerebral palsy, diabetes, epilepsy, muscular dystrophy, bipolar disorder, post-traumatic stress disorder, traumatic brain injury, obsessive compulsive disorder, and schizophrenia.
  7. If the tenant is requesting a unique animal that is not commonly kept in households, such as reptiles (not turtles), barnyard animals, monkeys, kangaroos, and other non-domesticated animals, the tenant has the substantial burden of demonstrating a disability-related therapeutic need for the specific animal or the specific type of animal.
  8. As a best practice, the landlord should make a determination as to whether or not to grant the tenant/applicant’s RA request generally within 10 days of receiving the documentation.
  9. A landlord may not charge a fee for processing a RA request.
  10. Before denying a RA request, the landlord is encouraged to engage in a good-faith dialogue with the tenant/applicant which is referred to as the “interactive process.”
  11. Landlords may not require a health care professional to use a specific form, to provide notarized statements, to make statements under penalty of perjury, or to provide an individual diagnosis or other detailed information about a person’s physical or mental impairment.
  12. When it comes to unique animals (i.e. those not commonly kept in households) it may be helpful for the patient/tenant to ask their health care professions to provide information related to (1) the date of the last consultation with the patient/tenant, (2) any unique circumstances justifying the patient/tenant’s need for the particular animal or type of animal, (3) whether or not the health care professional has reliable information about this specific animal or whether they specifically recommend this type of animal.

There you have it.  Everything is much clearer now isn’t it?!?

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Pets, Security Deposit Tristan R. Pettit, Esq. Pets, Security Deposit Tristan R. Pettit, Esq.

Wisconsin Landlords Cannot Require a Tenant to Pay A Non-Refundable Pet Deposit

Wisconsin law does not allow a landlord to charge a tenant a non-refundable pet deposit.I know of some landlords that require tenants with a pet to post both a non-refundable pet deposit (to cover the cost of cleaning the carpets to remove dander) and a refundable pet deposit (to cover any damage caused by the pet).  Unfortunately, non-refundable pet deposits are not allowed in Wisconsin because they meet the definition ...


Wisconsin law does not allow a landlord to charge a tenant a non-refundable pet deposit.

I know of some landlords that require tenants with a pet to post both a non-refundable pet deposit (to cover the cost of cleaning the carpets to remove dander) and a refundable pet deposit (to cover any damage caused by the pet).  Unfortunately, non-refundable pet deposits are not allowed in Wisconsin because they meet the definition of a security deposit and all security deposits are refundable.

Reasoning:

ATCP 134’s definition of a “security deposit” states that a security deposit “means 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.” Wis. Admin. Code ch. ATCP 134.02(11).

What is a pet deposit if not a “deposit given by a tenant to the landlord as security for the performance of the tenant’s obligations?”  The tenant’s obligation under this scenario would be to not allow his or her pet to damage the rental unit.  So legally speaking, a pet deposit is the same as a security deposit.

A Wisconsin landlord may only keep a security deposit, or a portion of a security deposit, for the amounts reasonably necessary to pay for:

  1. Tenant damage, waste or neglect of the premises;
  2. Unpaid rent which the tenant is legally responsible for;
  3. Payment that tenant owes under the rental agreement for utility services provided by the landlord but not included in rent;
  4. Payment for the direct utility service provided by a government-owned utility;
  5. Unpaid monthly municipal permit fee assessed against the tenant by a local unit of government;
  6. Any other item set for in the NSRP.

Wis. Stat. § 704.28 (1) and Wis. Admin. Code ch. ATCP 134.06(3).

So, if there is no damage, waste or neglect caused by the tenant’s pet, then a Landlord may not withhold a security deposit or a portion of a security deposit.  Charging a pet deposit to cover the cost of routine carpet cleaning, absent damage to the carpet, is not allowed.  A non-refundable security deposit is not allowed in Wisconsin and therefore neither is a non-refundable pet deposit.

So if you currently require tenants to post non-refundable pet deposits, you need to be aware that under Wisconsin law, that deposit will be considered to be a security deposit and is subject to all of the security deposit requirements, including the requirement to send a written itemization of any withholdings from the deposit. 

If you do not treat your non-refundable pet deposits as a security deposit and fail to follow the security deposit withholding laws and rules, then you run the potential risk of being sued by your tenant for making an improper security deposit withholding and potentially being liable for double damages and the tenant’s attorney’s fees. Ouch.

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Landlord Boot Camp Tristan R. Pettit, Esq. Landlord Boot Camp Tristan R. Pettit, Esq.

The Next LANDLORD BOOT CAMP will be held on April 25, 2020.

The 21st Landlord Boot Camp will be held on Saturday, April 25, 2020.To sign up now you can go to www.LandlordBootCamp2020.com or you can call the AASEW directly at (414) 276-7378 or email Joyce at joannajoyceb@gmail.comBelow are more details about the event.ThanksTThe Apartment Association of Southeastern Wisconsin's Landlord Boot Camp can help you navigate these treacherous waters and learn how to run your properties with less hassles.WHO: Taught by ...

The 21st Landlord Boot Camp will be held on Saturday, April 25, 2020.

To sign up now you can go to www.LandlordBootCamp2020.com or you can call the AASEW directly at (414) 276-7378 or email Joyce at joannajoyceb@gmail.com

Below are more details about the event.

Thanks

T

The Apartment Association of Southeastern Wisconsin's Landlord Boot Camp can help you navigate these treacherous waters and learn how to run your properties with less hassles.

WHO: Taught by Attorney Tristan R. Pettit of Petrie + Pettit S.C.

Attorney Tristan Pettit has given similar landlord-tenant law seminars to fellow attorneys, landlords, and property management organizations that charge their members $400-$500. This is your opportunity to learn all of the same information at a huge discount through the Apartment Association.

WHEN: April 25, 2020 from 8:30 am - 5 pm. Q+A from 5 pm - 6 pm

Registration opens at 7:10 AM. The seminar will run from 8:30 am to 5 pm with a half hour lunch break. There will be a one hour question and answer session afterwards, ending promptly at 6 pm. Many will find the Q&A invaluable, therefore you may wish to make arrangements to stay until 6 pm.

WHERE: Four Points by Sheraton at 5311 S. Howell Ave in Milwaukee.

INCLUDED:

• 100 plus page manual to help you put what you learn into practice.

• LUNCH

PRICE:

  • AASEW Members $189
  • Non-Members $329
  • Boot Camp + 12 month AASEW membership - $330

Wisconsin landlord-tenant laws are constantly changing. To help keep you up to date those who attended in the past three years receive a $40 discount.

What you will learn at the Spring 2020 Landlord Boot Camp:

Landlord Boot Camp covers everything that you need to know about residential Landlord Tenant law in Wisconsin, as amended in March 2012 by Act 143, in March 2014 and again in March 2016 with the passage of ACT 176, and again in April of 2018 with Act 317 including:

1. How to properly screen prospective tenants.

2. How to draft written screening criteria to assist you in the selection process.

3. How to comply with both federal and state Fair Housing laws including how to comply with “reasonable modifications" and “reasonable accommodations" requests.

4. How to legally reject an applicant.

5. What rental documents you should be using.

6. Best practices to avoid violating ATCP 134 and being sued by your tenant for double damages and actual attorney's fees.

7. How to properly draft a security deposit itemization letter.

8. How to avoid DATCP investigations and Civil Investigative Demands (CID's).

9. How to draft a good Notice for Breach so that it will not be defeated in court.

10. When you should use a 5 day notice, 14 day notice, 28 day notice.

11. The best way to serve a notice terminating tenancy.

12. Learn the "Ins and Outs" of the judicial eviction process.

13. How to prepare for your eviction trial in court.

14. Whether or not it is worth it to pursue a money judgment against your tenant.

15. Learn about the two types of garnishment action

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Short-Term Rentals Attorney Jennifer M. Hayden Short-Term Rentals Attorney Jennifer M. Hayden

GUEST POST: Short-Term Rentals Are More Complex Than You Think. Are They Right for You?

This is a guest post by Atty. Jennifer M. Hayden of Petrie + Pettit S.C.With the rise of short-term rental (STR) sites like Airbnb, Homeaway, and VRBO, you may be wondering if turning your home or rental property into a short-term rental is the way to go.  There are many benefits to short-term rentals including an increased income stream and as a result, many are considering making the switch.  However, ...

This is a guest post by Atty. Jennifer M. Hayden of Petrie + Pettit S.C.

With the rise of short-term rental (STR) sites like Airbnb, Homeaway, and VRBO, you may be wondering if turning your home or rental property into a short-term rental is the way to go.  There are many benefits to short-term rentals including an increased income stream and as a result, many are considering making the switch.  However, before jumping on board the STR bandwagon, be aware that you will need to address issues such as licensing, local ordinances, taxes, insurance and more if you want to rent your property for the short-term.

Licensing

According to the Wisconsin Department of Agriculture, Trade and Consumer Protection (“DACTP”) if you are charging rent to a tourist or transient occupant for any amount of time then you are operating a tourist rooming house” and are required to purchase a license through the state.  Wisconsin defines a  “tourist or transient occupant” as a person who travels to a location away from his or her permanent address for a short period of time for vacation, pleasure, recreation, culture, business or employment. 

Your local municipality (village, town, city or county) may also require you to be licensed through the municipality as well and may have different code requirements for properties engaged in commercial activity. 

Local Ordinances

Cities, villages, towns and counties may impose additional regulations on your short-term rental such as limiting the total number of days that the property can be rented, prohibiting rentals for less than a certain number of days, requiring registration fees, imposing inspections or nuisance regulations, or limiting the number of occupants based on bedrooms.

Taxes

With limited exceptions, you will need a seller’s permit from the Wisconsin Department of Revenue if you are operating a short-term rental.  You will need to collect and remit state sales and use taxes and, additionally, any applicable county sales tax, municipal room tax, local exposition tax, special district tax or premier resort area tax. 

Insurance Coverage

Even if you are planning on renting your home out for only a single occasion, you should check with your insurance company in advance regarding coverage.  Once you rent all or part of your home out, most insurance companies will consider this a business use and your general homeowner’s policy will likely deny coverage for any incident related to the business use.  Without insurance coverage, liability may fall to you, personally. 

Short-Term Lodging Marketplaces

If you want to market your short-term rental you will most likely use a short-term lodging marketplace.  A lodging marketplace provides a platform through which an unaffiliated third party offers to rent your short-term rental to a person and collects the rent from that person.  If you list your property for rent through a lodging marketplace that marketplace is required to register with the Department of Revenue for a license and is responsible for collecting state-imposed taxes. 

Additional Requirements

You may be prohibited from renting your property on a short-term basis.  Your Condominium Association Bylaws, Homeowner’s Association, Subdivision Covenants, Tenant’s Organization, or Lease may prohibit short-term rentals entirely or impose additional requirements. 

While short-term rentals offer many benefits, there are many issues that must be addressed prior to listing your STR on Airbnb, Homeaway, or VRBO.  If you would like to discuss whether short-term rentals are right for you, please give us a call.

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Seminars, Landlord Boot Camp Tristan R. Pettit, Esq. Seminars, Landlord Boot Camp Tristan R. Pettit, Esq.

The Next Landlord Boot Camp Is Right Around The Corner on October 26, 2019

Autumn is just around the corner and that means Landlord Boot Camp is right around the corner.  This will be the 20th Boot Camp that I have taught for the AASEW and it will be held on Saturday, October 26, 2019.To sign up now you can call or email Kathy at (414) 276-7378 or kathy@AASEW.org or sign up online at www.LandlordBootCamp2019.comBelow are more details about the event.ThanksTThe Apartment Association of ...

Autumn is just around the corner and that means Landlord Boot Camp is right around the corner.  This will be the 20th Boot Camp that I have taught for the AASEW and it will be held on Saturday, October 26, 2019.

To sign up now you can call or email Kathy at (414) 276-7378 or kathy@AASEW.org or sign up online at www.LandlordBootCamp2019.com

Below are more details about the event.

Thanks

T



The Apartment Association of Southeastern Wisconsin's Landlord Boot Camp can help you navigate these treacherous waters and learn how to run your properties with less hassles.

WHO: Taught by Attorney Tristan R. Pettit of Petrie + Pettit S.C.

Attorney Tristan Pettit has given similar landlord-tenant law seminars to fellow attorneys, landlords, and property management organizations that charge their members $400-$500. This is your opportunity to learn all of the same information at a huge discount through the Apartment Association.

WHEN: October 26, 2019 from 8:30 am - 5 pm. Q+A from 5 pm - 6 pm

Registration opens at 7:10 AM. The seminar will run from 8:30 am to 5 pm with a half hour lunch break. There will be a one hour question and answer session afterwards, ending promptly at 6 pm. Many will find the Q&A invaluable, therefore you may wish to make arrangements to stay until 6 pm.

WHERE: Four Points by Sheraton at 5311 S. Howell Ave in Milwaukee.

INCLUDED:

• 100 plus page manual to help you put what you learn into practice.

• LUNCH

PRICE:

• AASEW Members $189

• Non-Members $329

Wisconsin landlord-tenant laws are constantly changing. To help keep you up to date those who attended in the past three years receive a $40 discount.

What you will learn at the AASEW's Fall 2019 Landlord Boot Camp:

Landlord Boot Camp covers everything that you need to know about residential Landlord Tenant law in Wisconsin, as amended in March 2012 by Act 143, in March 2014 and again in March 2016 with the passage of ACT 176, and again in April of 2018 with Act 317 including:

1. How to properly screen prospective tenants.

2. How to draft written screening criteria to assist you in the selection process.

3. How to comply with both federal and state Fair Housing laws including how to comply with “reasonable modifications" and “reasonable accommodations" requests.

4. How to legally reject an applicant.

5. What rental documents you should be using.

6. Best practices to avoid violating ATCP 134 and being sued by your tenant for double damages and actual attorney's fees.

7. How to properly draft a security deposit itemization letter.

8. How to avoid DATCP investigations and Civil Investigative Demands (CID's).

9. How to draft a good Notice for Breach so that it will not be defeated in court.

10. When you should use a 5 day notice, 14 day notice, 28 day notice.

11. The best way to serve a notice terminating tenancy.

12. Learn the "Ins and Outs" of the judicial eviction process.

13. How to prepare for your eviction trial in court.

14. Whether or not it is worth it to pursue a money judgment against your tenant.

15. Learn about the two types of garnishment action

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Rental Agreements, Rental Documents, Statute of Limitations Tristan R. Pettit, Esq. Rental Agreements, Rental Documents, Statute of Limitations Tristan R. Pettit, Esq.

How Long Should A Landlord Save A Tenant's Lease and Other Rental Documents?

A while ago I wrote a post in which I recommended that landlords retain a denied rental applicant's application and related paperwork for at least 2 years from the date of denial.  This post will focus on the situation where the landlord has accepted the applicant, the applicant was your tenant, and now their tenancy has ended for whatever reason.  Under this scenario, how long should a landlord hold on ...

A while ago I wrote a post in which I recommended that landlords retain a denied rental applicant's application and related paperwork for at least 2 years from the date of denial.  This post will focus on the situation where the landlord has accepted the applicant, the applicant was your tenant, and now their tenancy has ended for whatever reason.  Under this scenario, how long should a landlord hold on to a past-tenant's rental documents (which would include the lease or month to month rental agreement, nonstandard rental provisions document, pet addendum etc. etc.)?

The answer to this question again, just like in my prior post, depends on something called the "statute of limitation."  A statute of limitation is a law which sets the maximum period in which a person can wait before filing a complaint or lawsuit against another person.

By entering into a lease or a month to month rental agreement (or any other rental document for that matter) with a tenant, you have entered into a contract.  So, if a tenant refuses to take occupancy because the tenant feels that the apartment was not in a habitable condition as promised, the tenant could sue the landlord for a breach of contract.  If a landlord forgot to return a tenant's security deposit within the applicable time frame, the tenant could also sue a landlord for a breach of contract.  Most violations of a lease or other rental document would be considered a breach of contract.

The statute of limitations for filing a lawsuit based upon a breach of contract in Wisconsin is 6 years from the date of the breach.  So, the safest thing for a landlord to do is to keep a past-tenant's rental file, and specifically all the contracts, for at least 6 years from the date that the contract ended. 

When it comes to the return of a security deposit, a landlord has 21 days after a lease has ended (or any other action set forth in Wis. Stat. § 704.28(4)) to return the security deposit or send the letter itemizing how the security deposit was applied.  As such a landlord would be smart to retain the tenant's file and all contracts for at least 6 years after the deadline for the return of the tenant’s security deposit (i.e. 6 years + 21 days from any event sent forth is Wis. Stat. § 704.28(4)).

If you forget to keep your past-tenant's rental documents for at least 6 years, you could end up in the unenviable position of trying to defend yourself against a lawsuit filed by a past-tenant whose tenancy you have no memory of.  As such, you would have no documents to refer to, to refresh your memory nor would you have any documents that you could use as an exhibit in court.  Keep in mind that a tenant typically only has one landlord at a time, whereas you may have tens or hundreds of tenants simultaneously.  It is probably safe to say that the tenant will have a better memory of you and his or her tenancy than you will have of them.  Therefore, keeping all tenant-related documentation for as long as the past tenant can sue you, is very important.  With computers and the ability to save things digitally these days, a landlord has no excuse for not holding on to a tenant’s rental file for at least the length of the statute of limitations.

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GUEST POST: Wisconsin Rental Income Standards and Section 8 Rent Vouchers

Guest post from Tim Ballering  - justalandlord.com~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~From a Fair Housing perspective, you probably must account in some manner for the value of the Section 8 payment when calculating an income multiplier guideline.I’ve read of the argument made in other jurisdictions that if an owner is using a rent multiplier, that it should be on net rent to the tenant. This is probably not a workable answer for either tenant ...

Guest post from Tim Ballering  - justalandlord.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

From a Fair Housing perspective, you probably must account in some manner for the value of the Section 8 payment when calculating an income multiplier guideline.

I’ve read of the argument made in other jurisdictions that if an owner is using a rent multiplier, that it should be on net rent to the tenant. This is probably not a workable answer for either tenant nor the owner. If the net payment by the tenant is $20 with a three times multiplier, a $60 per month income is not going to cover living expenses like heat and lights. A good discussion of this issue from a while ago is at: Bigger Pockets

In WI you must include the value of child support, food stamps and perhaps* Rent Assistance Vouchers in income calculations. So if the gross rent is $800 and the tenant receives $700 RA, $500 in food stamps, they would need to earn $1200 additional to meet the three times multiplier.

*Wisconsin Lawful Source of Income definition:

Wis Admin Code DWD 220.02(8)  “Lawful source of income” includes, but is not limited to, lawful compensation or lawful remuneration in exchange for goods or services provided; profit from financial investments; any negotiable draft, coupon or voucher representing monetary value such as food stamps; social security; public assistance; unemployment compensation or worker’s compensation payments.

There is a 1995 federal case, Knapp v. Eagle Property Management Corp, that found the value of Section 8 vouchers are not required to be included as income.

But that was nearly 25 years ago. Sentiments have changed over that time. I believe that if Knapp was tried today the court would find against the owner on this question as concepts like disparate impact were not widely argued then. Today we are restricted by HUD in using criminal records in screening because of the disparate impact on members of protected classes.

The plain language reading of the WI code makes not including the voucher value in the rent multiplier calculation open to expensive litigation, which the Knapp court determined that their insurer had no duty to defend.

To form your own opinion on this and other WI fair housing standards, a good starting point is:

STATE OF WISCONSIN Fair Housing Plan Analysis of Impediments to Fair Housing and Actions to Overcome Them Update to the 2015-2019 Consolidated Plan

~~~~~~~~~~

Thanks Tim

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Seminars, Landlord Boot Camp Tristan R. Pettit, Esq. Seminars, Landlord Boot Camp Tristan R. Pettit, Esq.

A Few More Spots Are Left for Saturday's Landlord Boot Camp

Hi All -- We have a few more spots left for Saturday's Landlord Boot Camp.  Info is below.  Hope to see many of you there.  If you don't want to attend because of the wealth of information that you will receive as well as the great resource materials, then attend for the free lunch  ; )TI wanted to let everyone know that the next Landlord Boot Camp will be held ...

Hi All -- We have a few more spots left for Saturday's Landlord Boot Camp.  Info is below.  Hope to see many of you there.  If you don't want to attend because of the wealth of information that you will receive as well as the great resource materials, then attend for the free lunch  ; )

T

I wanted to let everyone know that the next Landlord Boot Camp will be held on Saturday, February 9, 2019.

One new topic that I will discuss is Milwaukee County's new ordinance creating a new protected class for tenants with rental vouchers.  I will be explaining the new ordinance and what a landlord can and cannot do with regard to this new protected class.

I also will be discussing the new law changes under Act 317 which became effective as of April 18, 2018.  With so many changes in the law recently, this is definitely the Boot camp that you want to attend.  The 100+ page manual has also been updated as have many of the sample forms that are included.
 

To sign up now you can call or email Kathy at (414) 276-7378 or kathy@AASEW.org or sign up online at www.LandlordBootCamp2019.com

Below are more details about the event.

The Apartment Association of Southeastern Wisconsin's Landlord Boot Camp can help you navigate these treacherous waters and learn how to run your properties with less hassles.

WHO: Taught by Attorney Tristan R. Pettit of Petrie + Pettit S.C.

Attorney Tristan Pettit has given similar landlord-tenant law seminars to fellow attorneys, landlords, and property management organizations that charge their members $400-$500. This is your opportunity to learn all of the same information at a huge discount through the Apartment Association.

WHEN: February 9, 2019 from 8:30 am - 5 pm. Q+A from 5 pm - 6 pm

Registration opens at 7:10 AM. The seminar will run from 8:30 am to 5 pm with a half hour lunch break. There will be a one hour question and answer session afterwards, ending promptly at 6 pm. Many will find the Q&A invaluable, therefore you may wish to make arrangements to stay until 6 pm.

WHERE: Four Points by Sheraton at 5311 S. Howell Ave in Milwaukee.

INCLUDED:

• 100 plus page manual to help you put what you learn into practice.

• LUNCH

PRICE:

• AASEW Members $179

• Non-Members $297

SPECIALS: Not an AASEW member? Pay just $1 more than the non-member price ($298) and receive both attendance at Boot Camp and a 12 month general membership at the AASEW, which includes discounts at Home Depot, Sherwin Williams and more.

Wisconsin landlord-tenant laws are constantly changing. To help keep you up to date those who attended in the past three years receive a $40 discount.

What you will learn at the AASEW's Spring 2019 Landlord Boot Camp:

Landlord Boot Camp covers everything that you need to know about residential Landlord Tenant law in Wisconsin, as amended in March 2012 by Act 143, in March 2014 and again in March 2016 with the passage of ACT 176, and again in April of 2018 with Act 317 including:

1. How to properly screen prospective tenants

2. How to draft written screening criteria to assist you in the selection process

3. How to comply with both federal

Read More

Part 2: Landlords Can Be Liable for the Discriminatory Acts of Their Tenants

I received an email from a reader regarding my last post about the Wetzel case.  The reader essentially asked me what a landlord could do to make sure that they do not become liable for the discriminatory acts of their tenants like what happened to the landlord in the Wetzel case.While I cannot give legal advice (i.e. applying the law to a certain set of facts) via this blog, I ...

I received an email from a reader regarding my last post about the Wetzel case.  The reader essentially asked me what a landlord could do to make sure that they do not become liable for the discriminatory acts of their tenants like what happened to the landlord in the Wetzel case.

While I cannot give legal advice (i.e. applying the law to a certain set of facts) via this blog, I can certainly provide general guidelines, so here goes:

  1. Don't do anything that the landlord in Wetzel did.  Read the facts of the case - they are egregious.  Do the exact opposite of what the landlord did.
  2. If a tenant complains of abuse or harassment by other tenants, investigate the complaints to see if they are valid.  Wetzel advised the landlord that she was called a "fucking faggot" and "homosexual bitch" by other tenants.  Wetzel complained to the landlord that a tenant threatened to "rip her tits off."  Another tenant reveled in his memory of the Orlando massacre at the Pulse nightclub and Wetzel reported this to the landlord.  Wetzel was hit in the back of her head while alone in the mail room sitting on her scooter which resulted in her being knocked from her scooter.  Following the hit on the head, tenants taunted Wetzel openly by rubbing their heads and saying "ouch" when they passed her.  Another tenant spat on Wetzel while in the elevator.  Another tenant hit Wetzel's scooter with his walker. It was alleged that Wetzel reported all of this to the landlord and that the landlord did not do anything to investigate the incidents or protect her.  Instead the landlord chalked everything up to the ordinary squabbling and bickering that occurs among tenants residing in a facility for seniors.
  3. If your tenant is being harassed or abused by other tenants do not call him or her a liar.  
  4. Do not dismiss abusive conduct as accidental if your investigation proves otherwise.  
  5. Do not deny a tenant's allegations of abuse and call her a liar.
  6. Don't restrict the tenant that is allegedly being abused from accessing portions of the rental property.  The landlord in Wetzel told her that she could no longer eat in the main dinging room and barred her from using the lobby area except to get coffee.  The landlord also stopped providing Wetzel with cleaning service to which she was entitled under her lease. 
  7. If a tenant complains of being abused by another tenant, do not retaliate against her for making the complaint, by starting the process to evict him/her.
  8. Don't physically hit a tenant.  It was alleged that two of the landlord's employees woke Wetzel up from sleeping in the early morning hours, accused her of smoking in her room, and then one of the employees slapped her across the face.
  9. If after your investigation, you believe the allegations occurred - respond appropriately as allowed under landlord-tenant law.  The landlord in Wetzel had the ability to contact the police to report what was going on.  The landlord also could have served the abusive tenant/s with the proper notice (5 day, 14 day, 28 day, or 30 day) depending on the situation.  
  10. If the abusive tenants behavior has not been corrected then proceed to evict them, if necessary.

It is quite clear that if the landlord in this case had made any attempt, no matter how little, to protect Wetzel from the abuse that the Court's holding would have not been as far-reaching.  In fact, the Court even wrote in their opinion that "had the management done nothing but listen [to Wetzel] we might have a more limited case."

I hope that this answers your question.

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Landlords Can Be Liable for the Discriminatory Acts of Their Tenants

Perhaps one of the most important cases to be published in 2018 affecting landlord-tenant law was the Seventh Circuit Court of Appeals case of Wetzel v. Glen St. Andrew Living Community, LLC, 2018 WI 4057365 (7th Cir. Aug 27, 2018).  In the Wetzelcase the Seventh Circuit (which includes Wisconsin) held that a landlord may be liable under the Fair Housing Act (FHA) for failing to protect a tenant from ...

Perhaps one of the most important cases to be published in 2018 affecting landlord-tenant law was the Seventh Circuit Court of Appeals case of Wetzel v. Glen St. Andrew Living Community, LLC, 2018 WI 4057365 (7th Cir. Aug 27, 2018).  In the Wetzelcase the Seventh Circuit (which includes Wisconsin) held that a landlord may be liable under the Fair Housing Act (FHA) for failing to protect a tenant from known, discriminatory harassment by other tenants.

Within months of arriving at Glen St. Andrew, Wetzel, who was a lesbian, was physically and verbally abused by other tenants. On multiple occasions Wetzel asked staff members to intervene and protect her.  Rather than doing that, staff actually appeared to punish Wetzel by limiting where she was allowed to go in the facility.

Glen St. Andrews own Rules and Regulations document allowed it to evict any tenant who “engages in acts or omissions that constitute a direct threat to the health and safety of other individuals.”  Rather than enforce its rules against the tenants harassing Wetzel, staff told her not to worry about the harassment, dismissed the abuse as accidental, and denied Wetzel’s version of the facts, and even called her a liar.

The Court wrote that had the landlord done nothing but merely listen to the tenant, that its holding might have been more limited, however in this case Glen St. Andrew took affirmative steps to retaliate against Wetzel for complaining.

The Wetzel court interpreted the FHA broadly and ruled that not only does the FHA create liability for a landlord who intentionally discriminates against a tenant based on their protected class status; the FHA also creates liability against a landlord that has actual notice of tenant-on-tenant harassment based on the tenant's membership in a protected class, yet chooses not to take any reasonable steps within its control to stop the harassment.

While the landlord's actions in Wetzel were pretty egregious and faced with a different set of facts the Court may have held differently, the key takeaway from this case is that if landlords fail to curtail discriminatory conduct by tenants on other tenants, when it is possible for for the landlord to do so, the landlord may end up having direct liability under the FHA.

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Seminars, Landlord Boot Camp Tristan R. Pettit, Esq. Seminars, Landlord Boot Camp Tristan R. Pettit, Esq.

The Next Landlord Boot Camp Will Be Held on Feb. 9, 2019

Happy New Year Everyone - I hope that everyone had an enjoyable and safe holiday season.I wanted to let everyone know that the next Landlord Boot Camp will be held on Saturday, February 9, 2019.One new topic that I will discuss is Milwaukee County's new ordinance creating a new protected class for tenants with rental vouchers.  I will be explaining the new ordinance and what a landlord can and cannot do with regard ...

Happy New Year Everyone - 

I hope that everyone had an enjoyable and safe holiday season.

I wanted to let everyone know that the next Landlord Boot Camp will be held on Saturday, February 9, 2019.

One new topic that I will discuss is Milwaukee County's new ordinance creating a new protected class for tenants with rental vouchers.  I will be explaining the new ordinance and what a landlord can and cannot do with regard to this new protected class.

I also will be discussing the new law changes under Act 317 which became effective as of April 18, 2018.  With so many changes in the law recently, this is definitely the Boot camp that you want to attend.  The 100+ page manual has also been updated as have many of the sample forms that are included.
 

To sign up now you can call or email Kathy at (414) 276-7378 or kathy@AASEW.org or sign up online at www.LandlordBootCamp2019.com

Below are more details about the event.

Thanks

T

The Apartment Association of Southeastern Wisconsin's Landlord Boot Camp can help you navigate these treacherous waters and learn how to run your properties with less hassles.

WHO: Taught by Attorney Tristan R. Pettit of Petrie + Pettit S.C.

Attorney Tristan Pettit has given similar landlord-tenant law seminars to fellow attorneys, landlords, and property management organizations that charge their members $400-$500. This is your opportunity to learn all of the same information at a huge discount through the Apartment Association.

WHEN: February 9, 2019 from 8:30 am - 5 pm. Q+A from 5 pm - 6 pm

Registration opens at 7:10 AM. The seminar will run from 8:30 am to 5 pm with a half hour lunch break. There will be a one hour question and answer session afterwards, ending promptly at 6 pm. Many will find the Q&A invaluable, therefore you may wish to make arrangements to stay until 6 pm.

WHERE: Four Points by Sheraton at 5311 S. Howell Ave in Milwaukee.

INCLUDED:

• 100 plus page manual to help you put what you learn into practice.

• LUNCH

PRICE:

• AASEW Members $179

• Non-Members $297

SPECIALS: Not an AASEW member? Pay just $1 more than the non-member price ($298) and receive both attendance at Boot Camp and a 12 month general membership at the AASEW, which includes discounts at Home Depot, Sherwin Williams and more.

Wisconsin landlord-tenant laws are constantly changing. To help keep you up to date those who attended in the past three years receive a $40 discount.

What you will learn at the AASEW's Spring 2019 Landlord Boot Camp:

Landlord Boot Camp covers everything that you need to know about residential Landlord Tenant law in Wisconsin, as amended in March 2012 by Act 143, in March 2014 and again in March 2016 with the passage of ACT 176, and again in April of 2018 with Act 317 including:

1. How to properly screen prospective tenants

2. How to draft written screening criteria to assist you in the selection process

3. How to comply with both federal and state Fair Housing laws including how to comply with “reasonable modifications" and “reasonable accommodations" requests

4. How to legally reject an applicant

5. What rental documents you should be using<

Read More

How Long Should You Retain A Denied Rental Application?

I am often asked by landlords and rental property managers how long they should hold on to the rental applications of applicants that were denied.  The answer to that question depends on something called the "statute of limitations."  A statute of limitation is a law which sets the maximum period of time in which a person can wait before filing a claim/complaint or lawsuit against another person.The statute of limitations for a ...

I am often asked by landlords and rental property managers how long they should hold on to the rental applications of applicants that were denied.  

The answer to that question depends on something called the "statute of limitations."  A statute of limitation is a law which sets the maximum period of time in which a person can wait before filing a claim/complaint or lawsuit against another person.

The statute of limitations for a rental applicant to file a federal fair housing (discrimination) complaint against a landlord for failing to accept his/her application is 2 years.  The statute of limitations for a state fair housing (discrimination) claim to be filed is shorter -- only 1 year. 

So what this means to you is that you MUST retain all rental applications and any other related documentation, such as credit reports, criminal reports, questionnaires sent to current or prior landlords, CCAP printouts showing past evictions etc. etc., for at least 2 years from your last interaction with an applicant that did not become your tenant.  You will also want to save for the same period of time, the specific written screening criteria that you were using at the time that you processed and rejected the application.

If you fail to do this then you may end up in the unenviable position of trying to defend yourself against a fair housing (discrimination) claim brought by a disgruntled applicant that you have no memory of and you will not have any documentation that you can refer to in order to defend yourself.  While there is a strong likelihood that you will not remember each and every rental applicant that you have interacted with in the last 2 years, it is important to note that a denied applicant will always remember you because in their mind you are the person that denied them housing for discriminatory reasons.

You never, ever want to be stuck in a  "He Said, She Said" situation.  A "He Said, She Said" scenario is one where the denied applicant is saying that you denied their application for reasons in violation of the Fair Housing laws and all you can say in reply is "No, that is not true" but you have nothing but your word to refute the allegations.  Landlords and Property Managers always want to be in a position where they can produce written evidence to support their non-discriminatory reasons for denying an application.  And that can only be done if you retain all denied rental applications, written communications, and other relevant documents related to your decision, until the statute of limitations has run. 

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AASEW, Seminars, Landlord Boot Camp Tristan R. Pettit, Esq. AASEW, Seminars, Landlord Boot Camp Tristan R. Pettit, Esq.

Less Than One Month Until AASEW's Landlord Boot Camp on October 20, 2018.

Hello Everyone –There is less than 1 month left until the next Landlord Boot Camp which is scheduled for October 20, 2018.One new topic that I will discuss is Milwaukee County's new ordinance creating a new protected class for tenants with rental vouchers.  I will be explaining the new ordinance and what a landlord can and cannot do with regard to this new protected class.I also will be discussing the new ...

Hello Everyone –

There is less than 1 month left until the next Landlord Boot Camp which is scheduled for October 20, 2018.

One new topic that I will discuss is Milwaukee County's new ordinance creating a new protected class for tenants with rental vouchers.  I will be explaining the new ordinance and what a landlord can and cannot do with regard to this new protected class.


I also will be discussing the new law changes under Act 317 which became effective as of April 18, 2018.  With so many changes in the law recently, this is definitely the Boot camp that you want to attend.  The 100+ page manual has also been updated as have many of the sample forms that are included.
 

To sign up now you can call or email Kathy at (414) 276-7378 or kathy@AASEW.org or sign up online at www.LandlordBootCamp2018.com

Below are more details about the event.

Thanks

T

The Apartment Association of Southeastern Wisconsin's Landlord Boot Camp can help you navigate these treacherous waters and learn how to run your properties with less hassles.

WHO: Taught by Attorney Tristan R. Pettit of Petrie + Pettit S.C.

Attorney Tristan Pettit has given similar landlord-tenant law seminars to fellow attorneys, landlords, and property management organizations that charge their members $400-$500. This is your opportunity to learn all of the same information at a huge discount through the Apartment Association.

WHEN: October 20, 2018 from 8:30 am - 5 pm. Q+A from 5 pm - 6 pm

Registration opens at 7:10 AM. The seminar will run from 8:30 am to 5 pm with a half hour lunch break. There will be a one hour question and answer session afterwards, ending promptly at 6 pm. Many will find the Q&A invaluable, therefore you may wish to make arrangements to stay until 6 pm.

WHERE: Four Points by Sheraton at 5311 S. Howell Ave in Milwaukee.

INCLUDED:

• 100 plus page manual to help you put what you learn into practice.

• LUNCH

PRICE:

• AASEW Members $179

• Non-Members $297

SPECIALS: Not an AASEW member? Pay just $1 more than the non-member price ($298) and receive both attendance at Boot Camp and a 12 month general membership at the AASEW, which includes discounts at Home Depot, Sherwin Williams and more.

Wisconsin landlord-tenant laws are constantly changing. To help keep you up to date those who attended in the past three years receive a $40 discount.

What you will learn at the Apartment Association's Fall 2018 Landlord Boot Camp:

Landlord Boot Camp covers everything that you need to know about residential Landlord Tenant law in Wisconsin, as amended in March 2012 by Act 143, in March 2014 and again in March 2016 with the passage of ACT 176, and again in April of 2018 with Act 317 including:

1. How to properly screen prospective tenants

2. How to draft written screening criteria to assist you in the selection process

3. How to comply with both federal and state Fair Housing laws including how to comply with “reasonable modifications" and “reasonable accommodations" requests

4. How to legally reject an applicant

5. What rental documents you should be using and why

AND MUCH MORE


Read More

Milwaukee County Passes Ordinance Making "Receipt of Rental or Housing Assistance" A Protected Class

On June 21, 2018 the Milwaukee County Board of Supervisors passed a county ordinance amending Chapter 107 of the County Code of Ordinances (which deals with Fair Housing) adding "receipt of rental or housing assistance" as a protected class.  The ordinance went into effect as of July 19, 2018.  The Milwaukee County's Office of Corporation Counsel shall be responsible for enforcement. The revised ordinance defines "receipt of rental or housing assistance" ...

On June 21, 2018 the Milwaukee County Board of Supervisors passed a county ordinance amending Chapter 107 of the County Code of Ordinances (which deals with Fair Housing) adding "receipt of rental or housing assistance" as a protected class.  The ordinance went into effect as of July 19, 2018.  The Milwaukee County's Office of Corporation Counsel shall be responsible for enforcement. 

The revised ordinance defines "receipt of rental or housing assistance" as follows:

"Receipt of rental housing assistance" means the receipt of any form of financial contribution from a third party for the purposes of creating or keeping affordable housing for tenants, purchasers, or other potential housing recipients, including but not limited to, assistance provided pursuant to Title 42, United Housing Code, section 1437f (commonly known as the "Section 8" housing program), the HOME Partnership Program, the Community Development Block Grant program, or any other public rental assistance vouchers or programs.  It shall not be considered unlawful discrimination in housing for a housing provider to (1) refuse to accept emergency assistance funds under s. 49.138, Wis. Stats., or (2) refuse to accept any other public rental assistance or voucher if such rental assistance or voucher does not fully reimburse the housing provider for the amount of rent due at the time a rental assistance or voucher payment is made. 

What this means to landlords and property managers operating in Milwaukee County is that you can no longer advertise that you do not accept "Rent Assistance" or "Section 8" tenants.  It also means that when prospective tenants call you and ask if you accept "Section 8" that you cannot say "no."

What this does not mean however is that you are required to accept any and all tenants receiving rental or housing assistance.  You can still utilize your written screening criteria and if the applicant does not meet your requirements, they can still be denied even though they receive housing assistance.  But your screening criteria can no longer have the receipt of housing assistance as a basis for denial.

This also does not mean that you are now required to enter into a contract with a municipality or its agent, often referred to as a Housing Assistance Payments (HAP) contract, if you do not agree with the terms and conditions of that contract.  A landlord or property management company cannot be forced to enter into a contract that the landlord does not want to be a part of.  Many landlords who are otherwise in support of this ordinance and its intent are not in favor of the terms and requirements of the HAP contract.  Landlords that disagree with the terms of the HAP contract can still refuse to sign it.  In my prior blog post on this issue, I list several of the issues/concerns that some have with the HAP contract. Being part of some of the discussions with the County on the concerns with the HAP contract, I am aware that the County is aware of our concerns with the contract and its representatives have indicated that plan to look into some of these issues.

We will have to wait and see how this all plays out.  I will be discussing this issue more in depth, along with many other important landord-tenant law topics, at my next Landlord Boot Camp on October 20, 2018.

You can read the ordinance here.

Happy Landlording.

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Legislation, Act 317 Tristan R. Pettit, Esq. Legislation, Act 317 Tristan R. Pettit, Esq.

VIDEO: Interview Summarizing Key Points of Wisconsin's Latest Landlord-Tenant Law - Act 317

I recently had the opportunity to present a continuing legal education (CLE) webinar for the State Bar of Wisconsin on the recent passage of Act 317 - Wisconsin's latest Landlord-Tenant law changes.  After the webinar, which is primarily for attorneys, I was interviewed by the State Bar about some of the highlights from Act 317 and they were nice enough to allow me to include the video on by blog

I recently had the opportunity to present a continuing legal education (CLE) webinar for the State Bar of Wisconsin on the recent passage of Act 317 - Wisconsin's latest Landlord-Tenant law changes.  After the webinar, which is primarily for attorneys, I was interviewed by the State Bar about some of the highlights from Act 317 and they were nice enough to allow me to include the video on by blog

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Rental Agreements, Wisconsin Legal Blank Tristan R. Pettit, Esq. Rental Agreements, Wisconsin Legal Blank Tristan R. Pettit, Esq.

New and Improved Residential Rental Agreement Form Available Now

As many of you know, there was a large Landlord-Tenant law that was enacted last month. If you were not aware of this you should take a look at my earlier post on Act 317. As a result of that new law, it was necessary for me to add a new section to the Residential Rental Agreement forms (Forms 19 and 19L) that I draft and which are sold ...

As many of you know, there was a large Landlord-Tenant law that was enacted last month. If you were not aware of this you should take a look at my earlier post on Act 317. As a result of that new law, it was necessary for me to add a new section to the Residential Rental Agreement forms (Forms 19 and 19L) that I draft and which are sold at Wisconsin Legal Blank Company, Inc.

I also took the opportunity to make some other additions/revisions to improve the Rental Agreement form. You know how it goes, once something is completed, rather it be a newly remodeled house, a tweak to your golf swing, or as in this case, a residential rental agreement form, you automatically start wanting to do something more to it. Anyhow, I have been keeping a list of changes that I wanted to make to the Rental Agreement ever since it was printed back in August of 2016.

Below is a summary of the changes to the new and improved Residential Rental Agreement form:

1. Electronic Delivery of Certain Information/Documentation

I added a new section entitled “Electronic Delivery of Certain Information/Documentation" which summarized the new law that allows a Landlord to send certain information and documents to a Tenant via electronic means as long as the parties have agreed to this in writing. Please note that in order for this portion of the new law to apply, a landlord will have to enter into a new rental agreement or renewal that includes such language after April 18, 2018, which is when Act 317 became effective.

2. Short-Term and Vacation Rentals Prohibited

With the significant rise of tenants everywhere subletting their rentals, or portions of their rentals, via online websites like Airbnb, Homeaway, and VRBO, it became necessary to add to the form's section entitled “Assignment or Sublease" clarifying that short-term or vacation rentals are indeed a subletting and are not allowed.

3. End of Lease Term will be 12 noon.

I added a section that specifies that a lease for term will terminate at 12 noon on the final day of the term thus allowing, Landlords a bit more time to turn the unit over.

4. Additional Occupants Under Age 18 Residing on the Premises

I added a new section that allows a Landlord to list underage occupants residing in the premises. This was especially needed because if you were using the digital version of the Rental Agreement form and you included a child's name in the “Tenant" section, it would automatically create a signature line for the child. Oops.

5. No Mounting of Flat Screen Televisions or Satellite Dishes

Under the section entitled “Modifications To Premises" I added a prohibition against the mounting of flat screen televisions to walls and satellite dishes to shared portions of the premises, unless previously authorized by Landlord.

6. Payment for Damage

I added a new section entitled “Payment for Damage" that indicates that if Tenant-caused damage is repaired by Landlord that Tenant must reimburse Landlord for the costs within 10 days of demand,

7. Clarification of Overnight Guest Provision

The language used in the “Use of Premises and Guests" section of the Rental Agreement relating to how long a guest could reside in the rental unit needed to be clarified as it was vague and unclear. Language was added to explain that a guest may not reside in the rental unit for more than 14 non-consecutive days within any one year period or for more than 3 consecutive days within any one month period, without the prior written permission of Landlord.

8. Damage By Casualty

I completely re-wrote the “Damage by Casualty" section of the rental agreement in light of huge uptick in floods and fires that I have seen recently.. I felt that the prior language was not sufficiently clear to allow a Landlord all of the options available to him/her if the rental premises became untenatable due to casualty.

9. No Third-Party Checks Allowed and Ability to Require Future Payments Be Made By Certified Funds

I added language to the “Rent" section of the rental agreement form stating that unless otherwise agreed to by Landlord, all rental payments must be made from Tenant or Co-signer's account and that third-party checks will not be accepted. I also added language explaining that if a Tenant's rent payments is returned due to insufficient funds or for any other reason that a Landlord may require that future rent be paid by certified funds.

It is my hope that these changes will make the Residential Rental Agreement form more up-to date and beneficial to those of you using it. If you are interested in purchasing the new and improved Rental Agreement please contact Wisconsin Legal Blank Co., Inc. at (414) 344-5155, wilegalblank.com or in person at 749 N. 37th Street in Milwaukee

Take Care

T

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