Wisconsin Security Deposit Law 2026: Limits, Deadlines & Deductions
- What exactly goes in the 21-day letter? Every amount withheld, each described as a specific item of physical damage or other claim, with the dollar amount withheld for each. "Damages — $500" is not enough; "drywall repair, bedroom 2 — $180" is.
- Can I deduct a flat $150 cleaning fee? Risky. Wisconsin courts treat routine cleaning as normal wear and tear. Actual, documented cleaning costs from a third party are the defensible version — and even then, get advice before making it standard practice.
- The tenant trashed the place and owes more than the deposit. Do I still send the letter? Yes. Send the 21-day letter showing the deductions exceed the deposit, keep your documentation, and pursue the balance separately. Skipping the letter forfeits your position.
Wisconsin law lives in an administrative rule, not a statute — Wis. Admin. Code ATCP 134.06 — and it's famously unforgiving: 21 days to return the deposit with a written statement accounting for every dollar withheld (the "21-day letter"), and violations mean double the tenant's pecuniary loss plus court costs and the tenant's attorney fees under Wis. Stat. § 100.20(5). There is no cap on the amount. Every section below is from the Wisconsin Administrative Code and related statutes.
The short version: Charge whatever deposit you want. Within 21 days after the tenant surrenders the unit (with special timing rules for early move-outs), deliver or mail the full deposit minus lawful deductions, plus a written statement describing each item of damage or claim and the amount withheld for it. Routine cleaning, carpet shampooing, and repainting are never deductible. Miss the 21 days or deduct improperly and the tenant can sue for twice the amount wrongfully withheld — their pecuniary loss under Wis. Stat. § 100.20(5), which courts have measured at the full deposit when no accounting was provided — plus court costs and their attorney fees.
The statute table
| Citation | What it says (one line) |
|---|---|
| Wis. Admin. Code ATCP 134.01(11) | Defines a security deposit as any payment given as security for the tenant's performance under the rental agreement. |
| Wis. Admin. Code ATCP 134.06(2) | Within 21 days after the tenant surrenders the property, deliver or mail the full deposit less amounts properly withheld. |
| Wis. Admin. Code ATCP 134.06(2)(a)–(c) | The 21 days run from: the rental agreement's termination date (normal move-out); the earlier of the termination date or a new tenant's move-in (early move-out); or the date the landlord learns the tenant vacated (holdover). |
| Wis. Admin. Code ATCP 134.06(3) | Withholding is limited to unpaid rent, damages beyond normal wear and tear, utility bills the landlord paid, and items in written Nonstandard Rental Provisions signed or initialed by the tenant. |
| Wis. Admin. Code ATCP 134.06(4) | If anything is withheld, the landlord must deliver or mail a written statement describing each item of physical damage or other claim and the amount withheld for each — the "21-day letter." |
| Wis. Stat. § 704.28 | Governs withholding for waste, neglect, or damages beyond normal wear and tear; underpins the deduction rules. |
| Wis. Admin. Code ATCP 134.06(1) | The tenant may request a list of physical damages charged to the previous tenant's deposit; the landlord must provide it within 30 days of the request (or 7 days after notifying the prior tenant). |
| ATCP 134 / Wis. Stat. § 100.20(5) | A landlord who violates the rule faces double the amount of the tenant's pecuniary loss in damages, plus court costs and the tenant's reasonable attorney fees. Where the landlord provides no accounting, courts have measured the loss at the full deposit (Pierce v. Norwick, 202 Wis. 2d 588 (1996)). |
| ATCP 134 (as a whole) | No cap on deposit amounts; no interest required; no separate account required. |
Limits: how much can you charge?
No cap. Wisconsin sets no maximum security deposit. Because there's no cap, everything rides on the back end — the 21-day letter and what you deduct. What gets doubled on a violation is the tenant's pecuniary loss, not the deposit itself — but if you never send the accounting, a court can measure that loss at the whole deposit (Pierce v. Norwick).
The 21-day deadline, precisely
21 days after the tenant surrenders the rental property — but "surrenders" has three different starting lines under ATCP 134.06(2):
- Normal move-out: 21 days from the date the rental agreement terminates.
- Early move-out: 21 days from the earlier of the rental agreement's termination date or the date a new tenant's tenancy begins. Re-rent fast and your deadline moves up.
- Holdover/vacated late: 21 days from the date you learn the tenant has vacated or been removed.
If the tenant moves out before the lease ends without written notice, the 21 days don't start until the lease's end date (or the new tenant's start). Send the deposit and the 21-day letter to the forwarding address — or the last known address if none was provided. Nail the start date with the Security Deposit Deadline Finder.
Never miss Wisconsin's 21-day clock. Twenty-one days is one of the tightest return deadlines in the country — and the start date shifts when a tenant leaves early without notice. The Security Deposit Disposition & Deadline Tracker ($14.95, one-time purchase) keeps your return deadlines, itemized deductions, and mailing dates in one spreadsheet so the clock never sneaks up on you.
Deductions and the itemized list
The 21-day letter must describe each item of physical damage or other claim and the amount withheld as reasonable compensation for each item. Permitted deductions: unpaid rent, damage beyond normal wear and tear, utility bills you paid on the tenant's behalf, and anything else only if it's in written Nonstandard Rental Provisions that the tenant signed or initialed. Two hard lines from Wisconsin practice:
- Never deductible: routine cleaning, carpet shampooing, and repainting between tenants — these are normal wear and tear as a matter of law.
- Cleaning charges are gray: charging actual costs from an outside cleaning company is generally defensible; flat "cleaning fees" deducted without documentation invite a double-damages suit.
Assemble the letter with the Security Deposit Deduction Letter Generator — and don't let a missing utility bill stop you; the rule excuses no delays for bills you haven't received yet.
Interest and where the money sits
Wisconsin requires no interest on deposits and no separate account. One tenant-friendly quirk worth knowing: a new tenant can request the list of physical damages you charged to the previous tenant's deposit, and you must provide it within 30 days — keep your old 21-day letters filed.
The penalty, spelled out
Under ATCP 134 and Wis. Stat. § 100.20(5), a tenant who suffers pecuniary loss from a violation — a deposit not returned, a 21-day letter never mailed, or improper deductions — can sue for:
- Double the amount of the pecuniary loss in damages,
- Court costs, and
- The tenant's reasonable attorney fees.
The doubled base is the loss, not automatically the deposit: a sloppy $400 cleaning deduction on a $1,200 deposit means an $800 doubled award on that claim, plus costs plus the other side's lawyer. But the base grows fast when the accounting itself is missing — under Pierce v. Norwick, 202 Wis. 2d 588 (1996), a landlord who fails to provide the accounting faces double damages measured at the full security deposit, while a landlord who does account faces the doubled figure subject to offset for the landlord's actual damages.
FAQ
What exactly goes in the 21-day letter?
Every amount withheld, each described as a specific item of physical damage or other claim, with the dollar amount withheld for each. "Damages — $500" is not enough; "drywall repair, bedroom 2 — $180" is.
Can I deduct a flat $150 cleaning fee?
Risky. Wisconsin courts treat routine cleaning as normal wear and tear. Actual, documented cleaning costs from a third party are the defensible version — and even then, get advice before making it standard practice.
The tenant trashed the place and owes more than the deposit. Do I still send the letter?
Yes. Send the 21-day letter showing the deductions exceed the deposit, keep your documentation, and pursue the balance separately. Skipping the letter forfeits your position.
What are Nonstandard Rental Provisions?
Written lease terms that go beyond the standard rules — e.g., late fees, NSF check charges, rekeying costs. They must be in writing and signed or initialed by the tenant to support a deposit deduction. Verbal agreements don't count.
Can the tenant really get my 21-day letter about the previous tenant?
A new tenant can request the list of physical damages charged to the previous tenant's deposit. You must provide it within 30 days of the request (or 7 days after you notify the prior tenant of their deductions, whichever is later) — without naming the prior tenant or disclosing amounts.
Does the 21 days include mailing time?
The deposit and statement must be delivered or mailed within 21 days. Mail on day 21 and keep proof of mailing; better yet, mail by day 18.
Read the rule yourself: Wis. Admin. Code ch. ATCP 134 (Residential Rental Practices) — official chapter text (Wisconsin Legislature), including ATCP 134.06 (security deposits).
More security deposit guides
- Security deposit laws by state
- West Virginia security deposit law
- Wyoming security deposit law
- Washington security deposit law
- Alabama security deposit law
Last verified: October 18, 2026. This is general information, not legal advice. Verify with a licensed Wisconsin attorney before acting.