Major
revisions were made to the Wisconsin Statutes, Chapter 704 regarding landlords
and tenants.
Here are the
highlights:
1. Section
704.05(5) – This section now states that the landlord may presume that property
the tenant leaves behind is abandoned and the landlord may dispose of the
property if the landlord has provided written notice to the tenant. The written
notice can be included in the rental agreement or renewal and must state that
the landlord will not store any personal property the tenant leaves behind. The
landlord can dispose of the property regardless of whether it is owned by the
tenant or someone else. The tenant or a secured party can redeem the property
prior to disposal if they pay any landlord incurred expenses associated with
the disposal of the property.
Two
exceptions are medical items and manufactured homes, mobile homes and titled
vehicles. With medical prescriptions and equipment, the landlord must hold the
item for 7 days before disposal and the items must be returned to the tenant if
requested in this 7 day period. Any manufactured home, mobile home or titled
vehicle cannot be disposed of until the landlord has given written notice to
the tenant and any secured party that the landlord has actual knowledge of, by
regular or certified mail to the tenant’s last known address.
Note that a
landlord must provide written notice in any new rental agreement or renewal if
the landlord will not store abandoned property, with the exception of medical
prescriptions and titled vehicles as referenced above. Therefore, you can add
this provision to your new rental agreements or renewal agreements. For those
tenants who are in the middle of a lease term, you can amend the rental
agreement to include this language and have the tenant sign it. Of course, they
could refuse. In that case, it should be included in the next renewal
agreement. For month-to-month tenants without a written rental agreement, you
should provide this change in a written notice effective 30 days after the
notice.
If a landlord does not provide the
notice, then the old statutory provisions requiring the storage of abandoned
property will continue to apply.
2. Section
704.08 – This section requires the landlord to provide a check-in sheet to the
tenant which the tenant must complete within 7 days of first occupancy. The
check-in sheet must contain an itemized description of the condition of the
premises at the time of check-in. This section would require the landlord to
give a detailed description of the premises at the time of occupancy.
It is our suggestion that you should take
photos of the premises prior to tenant move in to have visual evidence of the
condition of the premises prior to tenant occupancy.
This new
statutory requirement applies to all tenancies beginning on or after March 31,
2012.
3. Section
704.02 – This section now states that if any provision in a rental agreement is
found to be invalid, the rest of the agreement is still in force.
4. Section
704.44 – This new provision contains exceptions to Section 704.02. If any of
these provisions are included in your rental agreement, the entire rental
agreement will be void.
Here is the
section:
704.44 Residential rental
agreement that contains certain provisions is void. Notwithstanding s. 704.02, a
residential rental agreement is void and unenforceable if it does any of the
following:
(1m) Allows a landlord to do
any of the following because a tenant has contacted an entity for law
enforcement services, health services, or safety services:
(2m) Authorizes the eviction
or exclusion of a tenant from the premises, other than by judicial eviction
procedures as provided under ch. 799.
(3m) Provides for an
acceleration of rent payments in the event of tenant default or breach of
obligations under the rental agreement, or otherwise waives the landlord's
obligation to mitigate damages as provided in s. 704.29.
(4m) Requires payment by the
tenant of attorney fees or costs incurred by the landlord in any legal action
or dispute arising under the rental agreement. This subsection does not prevent
a landlord or tenant from recovering costs or attorney fees under a court order
under ch. 799 or 814.
(5m) Authorizes the landlord
or an agent of the landlord to confess judgment against the tenant in any
action arising under the rental agreement.
(6) States that the
landlord is not liable for property damage or personal injury caused by
negligent acts or omissions of the landlord. This subsection does not affect
ordinary maintenance obligations of a tenant under s. 704.07 or
assumed by a tenant under a rental agreement or other written agreement between
the landlord and the tenant.
(b) Property damage caused
by natural disasters or by persons other than the tenant or the tenant's guests
or invitees. This paragraph does not affect ordinary maintenance obligations of
a tenant under s. 704.07 or
assumed by a tenant under a rental agreement or other written agreement between
the landlord and the tenant.
(8) Waives any statutory or
other legal obligation on the part of the landlord to deliver the premises in a
fit or habitable condition or to maintain the premises during the tenant's
tenancy.
(9) Allows the landlord to
terminate the tenancy of a tenant if a crime is committed in or on the rental
property, even if the tenant could not reasonably have prevented the crime.
If you have a provision in your rental agreement that
contains any of the language referenced in Section 704.44 above, remove the
provision immediately or your rental agreement will be void and unenforceable.
5. Section
704.28 – This section contains changes concerning security deposits. The most
significant change is in Section 704.28(4) (b):
If a tenant
vacates before the rental agreement termination date, the 21 days for the
return of the security deposit begins on the termination date or on the date
the landlord re-rents the premises, whichever comes first.
6. Section
704.07(2)(bm) – This new section states that before any earnest money or
security deposit is paid, the landlord must disclose any uncorrected building
or housing code violations to the tenant that present a significant threat to
the tenant’s health or safety.
7. Section
704.95 – This new section states “Practices in violation of this chapter may
also constitute unfair methods of competition or unfair trade practices under
Section 100.20.”
This may
mean that a practice that violates Section 704 may also be enforced under the
trade practices statute. That could mean double damages and reasonable
attorney’s fees for a party suffering a loss.
Note: It is unknown how the new
statutes will be interpreted by the courts. Once there is some history of court
case decisions under the new statutes, the interpretation of the various
statutory provisions may change.
You can view
the new statute Section 704 at:
http:/docs.legis.wisconsin.gov/statutes/statutes/704.pdf
This blog is designed for general information purposes only and
should not be construed to be formal legal advice. You should consult an
attorney for advice regarding your own situation. Although great care has been
taken to ensure the accuracy and utility of the information contained in this
blog, no warranty is made, express or implied, and Zimmerman & Steber Legal
Group, LLC assumes no liability in connection with any use or result from use
of the information contained herein.
