State Regulations Override Local Mandates for Wisconsin Landlords and Applicants
Tenant screening in Wisconsin operates under a distinct regulatory framework that blends federal oversight with extensive state-specific rules. Municipalities in Wisconsin face extensive state preemption over landlord-tenant rules, leaving them with significantly less authority to enact custom screening requirements compared to municipalities in many other jurisdictions.
The baseline rules governing the process are established by the federal Fair Credit Reporting Act alongside state-level mandates enforced via the Department of Agriculture, Trade and Consumer Protection. Specifically, the residential rental rules found in Wis. Admin. Code ATCP 134 and Wisconsin’s fair housing law under Wis. Stat. §106.50 dictate how landlords must handle applications, fees, and background checks.
Landlords must disclose building code violations
Before a landlord can accept an application fee or deposit, state rules require specific disclosures. Under ATCP 134.04, property owners must inform applicants of any uncorrected building or housing code violations that the landlord has been notified of.
When charging fees for credit reports or background checks, landlords face strict cost restrictions. Nonrefundable fees for third-party screening services cannot exceed the actual cost incurred. If a landlord collects a fee for a background check but fails to actually perform it, the fee must be refunded to the applicant.
Federal standards also apply once a screening report is pulled. If a landlord denies or conditions a rental application based on information found in a consumer report, they must issue an FCRA-compliant adverse action notice.
Protected Classes Governing Criminal Records and Income
Wisconsin applies unique protections regarding an applicant’s background. Under Wis. Stat. §106.50(1m), both arrest records and conviction records are designated as protected classes under state fair housing law.
Landlords generally cannot deny housing based on an arrest that didn’t lead to a conviction. For convictions, a denial is only permitted if the specific circumstances of the conviction are substantially related to the circumstances of the rental. For instance, a past conviction for property destruction might be relevant to a rental decision.
Additionally, Wis. Stat. §106.50(2m) establishes lawful source of income as a protected class. This includes Social Security, supplemental security income, and other government assistance. Because legislative updates have shifted the exact treatment of housing vouchers over time, landlords must verify the current statutory text regarding voucher coverage.
State law sets security deposit return deadlines
State law does not impose a dollar cap on security deposits. However, ATCP 134.06 mandates that property owners send back the deposit or supply an itemized accounting of withholdings within a 21-day window following either the unit’s surrender by the renter or the official conclusion of the tenancy, whichever occurs later. Deductions are generally limited to unpaid rent, specific waste or neglect, and damage beyond normal wear and tear.
Regarding lease defaults, Wisconsin has no statewide just-cause eviction requirement. For nonpayment of rent under Wis. Stat. §704.17, tenancies of one year or less typically require a 5-day notice to pay or vacate, though the precise notice period depends heavily on the specific lease type and default circumstances.
Wisconsin restricts landlord criminal history use
Does Wisconsin limit how landlords use criminal history?
Yes. State fair housing law protects both arrest and conviction records, generally barring denials based on arrests without convictions and requiring that any conviction-based denial be substantially related to the rental circumstances.
Is source of income a protected class in Wisconsin?
Yes, state law includes government assistance and other lawful income sources as protected classes, though the precise scope of housing voucher coverage should be verified directly against the latest statutory text.
Does Wisconsin cap security deposits?
There is no dollar cap on security deposits under state law, but landlords must return funds or provide an itemized deduction statement within 21 days of unit surrender or lease termination.
Can Wisconsin cities enact local rent control or tenant ordinances?
Generally no. State law broadly preempts local rent control and limits additional municipal landlord-tenant regulations beyond the statewide framework established in ATCP 134 and Chapter 66.
