Real estate investment can be daunting, especially if you’re unfamiliar with the area you’re investing in. Each state has different laws that they expect landlords to follow, and if you don’t follow them, you could get caught up in costly lawsuits. Below are some of the things that landlords need to know when investing in real estate in Wisconsin.
Evictions
When first starting out, it can be daunting to realize that you have to evict a tenant. You may have questions like, what is a quit notice?How do I make sure I evict someone legally? There are many laws that complicate the process. However, it’s important to remember that each tenant is entitled to their Wisconsin rental rightsand that these laws are there to protect both you and your renters.
Wisconsin eviction lawsestablish a few different rules depending on what kind of eviction you’re dealing with. If you are demanding rent payment, the tenant has five days to either pay what they owe or move out. If the tenant does neither of these things, you can proceed with the eviction lawsuit. However, if the tenant fails to pay rent twice within a year of their first offense, the landlord may issue a 14-day notice to quit, which does not give the tenant an opportunity to pay before getting evicted.
If the tenant violates a term of the lease besides nonpayment, they have five days to cure the breach or quit the unit. Similar to the rule above, if the tenant commits another violation within one year, the landlord can issue a 14-day notice to quit without an opportunity to fix the breach before eviction proceedings can begin.
Finally, the landlord can file an unconditional notice to quit if law enforcement tells the landlord that their tenant is using the rented unit for illegal or criminal gang activity or to distribute, make, or sell a controlled substance. In this case, the tenant has five days to quit.
Whenever you’re evicting a tenant, it’s important to keep federal and Wisconsin fair housing lawsin mind. Federally, there are seven protected classes in housing: race, color, national origin, religion, sex, familial status, and disability. In Wisconsin, landlords also cannot discriminate based on sexual orientation, marital status, status as a victim of domestic abuse, sexual assault or stalking, lawful source of income, age, and ancestry.
Required Disclosures
Landlords have a legal obligation to tell their tenants anything that may be pertinent to their time living in your unit. In Wisconsin, there are a few distinct disclosures you should know.
You must provide a written receipt for all payments and security deposits collected if they are not collected via check. Also, before you collect your tenant’s security deposit, you must tell your renters via a written notice that they have seven days to inspect their new home for existing damages. They also have a right to receive an itemized list of damages upon move out that the landlord can deduct from their deposit for.
Further, landlords must disclose any housing or building code violations that would threaten the tenant’s health or safety. Additionally, you must tell your tenants if the unit lacks hot or cold running water, if the unit lacks electricity, whether electricity, plumbing, or sewage disposal facilities are not up to working condition, or if any other structural aspects of the property could pose a safety threat to your tenant.
Wisconsin also requires that all rental agreements include a notice informing tenants that there are legal protections for domestic violence victims.
Security Deposits
Wisconsin security deposit law is pretty straightforward. There is no limit on security deposit amounts, and landlords don’t need to pay interest on security deposits or keep them in a specific or separate bank account. Wisconsin law does state that landlords must return the deposit within 21 days and can withhold funds to cover costs from unpaid fees, rent, tenant damages, or another provision that is described in the lease.
Rent and Other Fees
Collecting payments from your tenants is one of the chief responsibilities of being a landlord. There are a few things you need to know when performing this duty in Wisconsin.
First of all, there is no specified date for when rent should be due. That date is up to the landlord’s discretion and should be written up in the lease. Also, there are no limits on late fees, and there is no mandatory grace period. Rent control is banned, and landlords can choose what to charge tenants in the case of non-sufficient funds or a bounced check. Landlords can also charge an application fee of up to $25. This should cover the costs of running a consumer credit report and background check on your applicants.
Conclusion
Before investing in any state, make sure you’re confident that you know the relevant laws and rules that govern real estate in that area. Becoming familiar with these important guidelines will help you avoid lawsuits and treat your tenants in the fairest way possible.
