Wisconsin security deposit account for landlords
Easily collect and manage deposits for every property with dedicated security deposit accounts.
Why use a security deposit account in {{ state }}
Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.
Benefits for property
owners
Repair and maintenance
Covers property damage such as paint, carpet, or floor damage, including costs caused by pets.
Fund separation
Meet state requirements for holding deposits in a dedicated tenant security deposit account.
Streamlined returns
Simplifies refunding tenants while accounting for deductions like cleaning or unpaid utilities.
Benefits for tenants
Fair protection
Funds are protected from misuse, covering only actual repair costs like cleaning, carpet replacement, or floor damage.
Transparency on deductions
Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
Savings potential
Deposits may be held in a tenant security deposit account or rental deposit account that earns security deposit interest, helping tenants recover more than they put in.
{{ state }} security deposit account
You’re not required to keep a tenant’s security deposit in Wisconsin. It's still a good practice to use a dedicated security deposit bank account in Wisconsin. Since these funds are refundable, tracking becomes much simpler.
{{ state }} security deposit
limits
There is no maximum security deposit in Wisconsin. You can charge a deposit limit based on the average security deposit, which is often 1 to 2 months' rent across states.
{{ state }} security deposit interest
State law security deposit doesn’t require interest on security deposits in Wisconsin. But, you can still hold funds in an interest-bearing account and pay the security deposit interest rate.
Go beyond standard security deposit accounts
Collect, return, and track deposits by tenant and
property, even when funds are held in external accounts.
{{ state }} security deposit accounts
Hold each security deposit in separate non-interest or interest-bearing accounts that earn up to [v="apyvalue"] APY².
Unlimited accounts for all entities
Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.
Free online payments
Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.
Automated bookkeeping
Track and tag payments to the right tenant and property — automatically.
Essentials for every door
Everything you need for every part of the rental process.
Lease creation and e-sign
Upload or create and e-sign state-specific leases online.
Free tenant screening
Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.
Property-specific accounts
Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.
{{ state }} security deposit rules
No limit
No
No security deposit escrow account required. It’s still recommended to keep the deposit separate from the rest of the funds.
Unpaid rent, utilities, municipal permit fees, and damages beyond normal wear and tear
21 days
Additional resources
ARTICLE
How to collect security deposits
FAQs
How much security deposit can a landlord charge in Wisconsin?
There is no limit on the amount you can request for a security deposit. You can set a Wisconsin security deposit limit based on your property type, whether it’s a house rental, apartment, or condo. While you can technically charge first and last month's rent plus a deposit, most landlords stick to one month's rent.
Is interest required on tenant security deposits in Wisconsin?
You are not required to pay Wisconsin security deposit interest. Additionally, you aren't required to put the funds into a landlord-tenant security deposit bank account in Wisconsin; you can hold the money in whatever way works best for your business.
How should I issue a security deposit receipt to tenants in Wisconsin?
If your tenant pays the deposit in cash, you are legally required to provide a written receipt immediately. If they pay by check, a receipt isn't strictly required, but it is always a good "best practice" to provide one anyway. This keeps your records clean and builds trust with your new tenant from day one.
How many days to return a security deposit in Wisconsin?
You have 21 days to return the tenant's security deposit in Wisconsin. Usually, this countdown starts the day the tenant moves out. But, if your tenants moved out before the lease date, the 21-day countdown starts on the day the rental agreement ends or the date a new tenancy begins, whichever is sooner.
What can a landlord deduct from a security deposit in Wisconsin?
Landlord rights security deposit rules allow you to charge for items like damage that goes beyond "normal wear and tear," unpaid rent, and utilities. If you withhold money for the wrong reasons, a court could award the tenant double damages.
Can a security deposit be used for unpaid rent in Wisconsin?
Yes. If a tenant leaves owing money, you can use security deposit funds to cover that unpaid rent. Just remember that you still need to provide the tenant with an itemized list of these deductions within 21 days.
Can landlords keep a security deposit for breaking a lease in Wisconsin?
If a tenant is breaking lease terms by leaving early, you can use the landlord security deposit in Wisconsin to cover your actual financial losses, such as lost rent and the costs of advertising the unit to find a replacement.
