Activity 5: Security Deposit Deductions

(Objective 3: Understand procedures to follow when ending a rental agreement.)

Suggested Introduction: The security deposit paid to a landlord when a tenant moves in is “insurance” should the tenant miss paying rent or damage the property. Wisconsin landlord/tenant law requires the landlord to deliver or mail the security deposit, less any amounts withheld, to the last known address of the tenant within 21 days after the end of the rental agreement term. The landlord may withhold money from the security deposit for tenant damage, waste or neglect of the property, nonpayment of rent, and utility bills left unpaid when the tenant moves out.

Disputes over security deposits are a common problem between landlords and tenants. The check-in/check-out form is an important tool in getting back your security deposit. How does the property compare as you get ready to leave versus how it looked when you moved in? Complete the check-out portion of the form, take pictures, and/or walk through the property with your landlord. If possible, return the keys to the landlord in person and get a receipt. This lets the landlord know you are no longer living in or using the property. Provide the landlord with a written and dated forwarding address, or tell them to send the deposit to your old address and put in a forwarding request with the Post Office.” Keep a copy of what you have shared. Be sure to clean and remove all of your belongings.

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Distribute Handout 6: Security Deposit Deductions Letter. This is an example of a security deposit letter from a landlord. Deductions are itemized and the amount of the security deposit returned to the tenant is listed. If a landlord does not follow the rules on the return of a security deposit a tenant may be able to sue the landlord for double the amount of the security deposit or double the amount of the security deposit which was wrongfully withheld. Since laws on security deposits changed in 2012 and 2014, it may be important to seek legal advice if there is a dispute.