Earnest Money

Some landlords may require a prospective If the application is accepted and the parties tenant to put up “earnest money” or a “down enter into a , all earnest payment” to hold an apartment before the money which the tenant paid MUST be applied parties actually enter into a rental agreement. toward the rent or security deposit. If the This earnest money is NOT a security deposit, prospective tenant who paid earnest money but may later be used as such if the parties decides not to rent, the landlord may only Security enter into a rental agreement. keep that amount which will cover actual damages and costs resulting from the tenant’s NOTE: If the landlord rejects a prospective actions. This may include lost rents only if Deposits tenant’s application, all earnest money given the landlord has made reasonable efforts to by the tenant must be returned immediately. reduce the rental loss (by trying to locate new The only exception is the landlord may deduct tenants and re-rent the apartment). In all such the actual cost of a check (a maximum cases, a landlord must give the tenant, upon of $20). request, a written statement accounting for all amounts withheld from an earnest money deposit.

Most landlords ask their tenants to pay security deposits. Security Deposits are money that the landlord keeps until the tenant moves out. The landlord may then spend the deposit money to cover unpaid rent and utility bills, and to repair damage the tenant may have caused. Section ATCP 134.06 of the Residential Rental Practices Code contains state rules about security deposits. T

This pamphlet was published with funds provided by HUD through Community Development Block Grant funding.

This pamphlet, which is based on law, is issued to inform and not to advise. This pamphlet was published on July 1, 2014. Laws may have changed since that date.

The following people authored the pamphlet: Attorneys Christine Olsen, Anne Jacobson, Mark Sauer and Beth Ann Richlen and Community Development staff. Landlords must give new tenants a list of and give notice of any defects within When tenants damage property or don’t pay damages they have charged against the unit’s 7 days from the date they move in. their rent or utility bills, a landlord has the right previous tenant’s security deposit. They must The checklist should include all major parts of to spend all or part of the security deposits give the tenant the list before the landlord the rental property and should have a way to to cover those expenses. A landlord may takes the new security deposit, or at the same grade each item on the list. It should also have also sue for additional money to cover those time as they notify the previous tenant about space for comments about each item. Wis. expenses when the deposit is not enough. the charges, whichever is later. Stat. 704.08. Tenants should not think their security deposit can serve as payment for their last month’s Many times, landlords and tenants disagree The best way to do the inspection is for the rent, even if the deposit equals one month’s at the end of a rental agreement about how landlord and tenant to do it together. After rent. well the tenants kept up the property. These the inspection, both should sign and date disagreements often lead to arguments over the checklist. Each should keep a copy. If A landlord does not, however, have the right how much of the tenant’s security deposit the this is not possible, the tenant should have a to spend security deposit money to pay for landlord should return. witness make the inspection with them. The normal wear and tear on carpets, furniture, tenant and the witness should sign and date or woodwork. They also may not use that One way to decrease this problem is for the the checklist and give a copy to the landlord money to pay for regular cleaning of the units, new tenant to record the condition of the within 7 days of the move-in date. or for improvements they decide to make property on a checklist when they move in, to the property, unless a specific provision and again when they move out. Landlords Having to give the landlord a security deposit to which both parties have agreed appears must give tenants a standard checklist should encourage tenants to treat property in the . A landlord may not charge that they have printed or bought. Sample respectfully. When tenants keep property in unreasonable labor costs for repairs he or she checklists can be found online at www. the same condition it was when they moved does themselves. tenantresourcecenter.org under “Resources” in, the landlord should return all their deposit and “Forms.” Landlords are required to notify money when the rental agreement ends. tenants that they have a right to inspect the Landlords must return security deposit money within 21 days after the end of the lease or the date a new lease begins for the same

unit, whichever is earlier. When landlords do CHECK-IN FORM Check-out Form not return any or all of the deposit, they must Date ______on Date ______tell the tenant in writing how much they spent Landlord/Agent Delivery of this Form yes/no? Agent’s Delivery of Check-out______Form Address of Residential Rental Unit Address of Rental Unit and why. For example: Name of Landlord/Agent Providing this Mandatory Form Owner/Agent Providing Form ______Tenant(s) moving out Complete and return this form to landlord/manager, keeping a copy for your records. If you would like to Name(s) of Tenant(s) moving in: Deposit Amount $ • Repair hole in bathroom wall ______schedule a walk-through, contact ______(name) at ______(phone) before ______(date). Date of move in Tenant Name(s) ______Amount ______Materials (plaster) $10.00

(Tenant(s) must be Forwarding address for return of security deposit: ______Amount ______Tenant(s) should: request list of damages from prior tenant (by checking box below), Please return the security deposit to: ______Amount ______Labor (1 hour repair) $10.00 complete this form (as must be provided by and filled in by Wis.Landlord) Stat. 704.08by noting any ______Date ______Date (unitemized) damages or defects in the rental unit in second column, make a copy for Tenant Signature(s) ______Date own records, and 7 days return after completed moving in copy to complete/return.) to the Landlord/manager. given at least • Repair stain in living room carpet Provided? Original Deposit Amount $______Rent Credit Due $______I/we request a list of physical damages or defects that were charged to the previous Yes/No Condition? Cleaner $ 3.50 . ATCP 134.06 Explanation for any rent credit deemed not due:______Dining Room tenant’s security deposit. This list shall be provided within 30 days of landlord’s______Provided? Condition? Walls/Ceiling ______Labor (1/2 hour repair) $ 5.00 receipt of this request, or within seven days after the previous tenant has been______notified Ye s /N o Woodwork/Trim ______of the charges of their deposit, whichever occurs later Kitchen ______Door(s) ______Date-IN FORM Range/Stove ______Window(s) ______Tenant Signature(s) ______TENANT(S) CHECK Date Condition? Hood fan Provided? Microwave ______Window Coverings ______When a landlord does not follow these rules, Y/N ______Kitchen -IN FORM Oven Light (s) ______

LANDLORD CHECK Condition? Range/Stove Outlets/Switches ______a tenant can sue in Small Claims Court for Provided? Dishwasher ______Hood fan Y/N Sink/Faucets ______Flooring/Carpet ______Kitchen Microwave ______twice the amount of their deposit plus court Oven Disposal Cabinets/built-ins ______Range/Stove ______Dishwasher Hood fan Refrigerator Closet(s) ______Sink/Faucets costs and attorney’s fees. Microwave Exterior Disposal ______Other Oven Provided? Refrigerator Refrigerator Dishwasher Yes/No Condition? Exterior Components (ice Sink/Faucets trays, shelves, etc.) Living Room Refrigerator Disposal Components Countertops ______Walls/Ceiling ______Refrigerator ______(Ice trays, Exterior Pantry Woodwork/Trim ______shelves, etc.) ______Refrigerator Countertops Walls/Ceiling ______Door(s) Components Pantry Woodwork/Trim ______Window(s) ______(Ice trays, ______Walls/Ceiling shelves, etc.) Door(s) Window Coverings ______Woodwork/Trim Countertops Door(s) Window(s) ______Light Fixture(s) ______Pantry

Walls/Ceiling Window(s) Window Coverings ______Outlets/Switches ______Window Woodwork/Trim Light Fixture(s) ______Coverings Flooring/Carpet ______Door(s) Light Fixture(s) Outlets/Switches ______Cabinets/built-ins ______Window(s) ______Outlets/Switches Flooring/Carpet ______Window Closet(s) Flooring/Carpet ______Coverings Cabinets/Built-ins ______Cabinets/ ______Other Light Fixture(s) Built-ins Closet(s) ______Outlets/Switches Closet(s) Flooring/Carpet Other ______Condition? Other, En t r y, S t a ir s Cabinets/ Other Built-ins ______Describe Other, Closet(s) ______Other, ______Hall, Closet(s) Condition? Condition? ______9/05 ______Provided? , Y/N Describe Other Bedroom 1 ______Condition? Walls/Ceiling Provided? ______Y/N Woodwork/Trim Bedroom 1 Door(s) ______

Window(s) Tenant Resource Center, Inc. • (608) 257-0006/(877) 238-RENT (7368) Walls/Ceiling Window Woodwork/Trim Coverings Door(s) Light Fixture(s) Window(s) Outlets/Switches Window Flooring/Carpet Coverings Cabinets/ Light Fixture(s) Built-ins Outlets/Switches Closet(s) Flooring/Carpet Other, Cabinets/ Built-ins ______Other, Closet(s) Other, ______4/12 ______r.org Other, rcecenter nantresou www.ten ______368) • 8-RENT(7 e (877) 238 / Toll Free 257-0006/ .. • (608) enter,, Inc esource C Tenant R