Security Deposit Demand Letter — Wisconsin

SECURITY DEPOSIT DEMAND LETTER

STATE OF WISCONSIN

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL

[__/__/____]

[LANDLORD/PROPERTY MANAGER FULL LEGAL NAME]
[ADDRESS]
[CITY, WI ZIP]

Re: FORMAL DEMAND — RETURN OF SECURITY DEPOSIT UNDER Wis. Stat. § 704.28 AND ATCP 134
Former Tenant(s): [TENANT FULL NAME(S)]
Rental Property: [FULL PROPERTY ADDRESS], [CITY], WI [ZIP]
Lease Period: [__/__/____] through [__/__/____]
Move-Out Date: [__/__/____]
Written Return Request Submitted: [__/__/____]
Security Deposit Amount: $[____]

Dear [LANDLORD/PROPERTY MANAGER NAME]:

This law firm represents [TENANT FULL NAME] ("Tenant" or "Client") with respect to your failure to return our Client's security deposit in compliance with Wisconsin Statutes § 704.28 and Wisconsin Administrative Code ATCP Chapter 134. This letter constitutes formal demand for the return of the deposit, plus double damages and attorney's fees as authorized by Wisconsin law.

I. WISCONSIN LEGAL FRAMEWORK — CRITICAL DISTINCTIONS FROM OTHER STATES

A. The ATCP 134 Written-Request Trigger (Wisconsin-Unique Procedure)

Wisconsin's security deposit law has a procedure found in few other states: under ATCP 134.06(3)(c), the tenant's written request for return of the deposit triggers the landlord's 21-day clock. Our Client submitted a written request for return of the deposit on [__/__/____] by [CERTIFIED MAIL / EMAIL / HAND DELIVERY]. The 21-day statutory period began on that date. The deadline for compliance was therefore [__/__/____]. You have failed to comply.

B. Governing Statutes and Regulations

Wisconsin security deposits are governed by a two-layer framework:

1. Wis. Stat. § 704.28 — The core statutory provision establishing the 21-day return deadline and authorizing double damages plus attorney's fees for wrongful withholding.

2. Wisconsin Administrative Code ATCP Chapter 134 — Promulgated by the Wisconsin Department of Agriculture, Trade and Consumer Protection ("DATCP"), ATCP 134 provides detailed procedural requirements that supplement the statute and are independently enforceable.

C. The 21-Day Return Deadline (Wis. Stat. § 704.28(2))

Under Wis. Stat. § 704.28(2), a landlord must, within twenty-one (21) days after the later of:

1. The date the tenant vacates the premises; or
2. The date the tenant provides written notice of the tenant's forwarding address (if not previously provided); or
3. The date of the tenant's written request for return of the deposit under ATCP 134.06(3)(c);

— return the full security deposit or deliver to the tenant a written itemized statement of deductions along with any remaining balance.

D. ATCP 134.06 Itemization Requirements — Receipts Mandatory Over $50

If a landlord withholds any portion of the deposit, ATCP 134.06(2) requires:

• A written itemized statement identifying each specific item for which a deduction is made;
• The cost per item repaired or replaced (general estimates are insufficient);
• For any deduction exceeding $50.00, actual receipts or invoices from the contractor or vendor must be included or provided within the 21-day period;
• If receipts are not yet available at the time of the statement, the landlord must provide a written good-faith estimate and the actual receipts within a reasonable time — but the failure to provide receipts for items exceeding $50 within the 21-day period is itself a violation of ATCP 134.06.

You have failed to provide a compliant itemized statement with required receipts, in violation of ATCP 134.06(2).

E. Security Deposit Cap — One Month's Rent (ATCP 134.02(3))

ATCP 134.02(3) limits security deposits to one month's rent for most residential tenancies (excluding certain subsidized housing). The monthly rent for this tenancy was $[____], making the maximum permissible security deposit $[____]. Any amount collected in excess of this cap was unlawfully collected.

F. Check-In Sheet Requirements (ATCP 134.06(1))

Under ATCP 134.06(1), the landlord must provide the tenant with a written check-in sheet at the beginning of the tenancy identifying all pre-existing defects and conditions. If no check-in sheet was provided, or if the conditions documented were inaccurate:

☐ You failed to provide a check-in sheet entirely, which bars you from claiming damage that pre-existed the tenancy.

☐ The check-in sheet you provided failed to accurately reflect pre-existing conditions, including: [________________________________]

G. Permissible vs. Prohibited Deductions Under ATCP 134.06(3)

A landlord may deduct only for:

• Tenant damage beyond normal wear and tear, documented with item-by-item costs and receipts;
• Unpaid rent for which the tenant is legally responsible under the lease;
• Other charges specifically authorized by the written lease agreement.

A landlord may not deduct for:

• Normal wear and tear (faded paint, minor carpet wear in traffic areas, small nail holes, worn door hardware);
• Routine cleaning required to prepare the unit for the next tenant ("turnover cleaning");
• Routine repainting between tenancies — prohibited under ATCP 134.06(3)(c);
• Conditions caused by the landlord's failure to maintain the premises under Wis. Stat. § 704.07;
• Costs attributable to defects noted or that should have been noted on the check-in sheet;
• Deductions exceeding the actual documented cost of repair.

II. FACTS OF THIS TENANCY

A. Tenancy Summary

B. Move-Out Details

C. Condition of Premises at Move-Out

☐ Premises were left clean and in good repair, with all personal property removed.

☐ Premises were professionally cleaned by [________________________________] on [__/__/____]. Receipt enclosed.

☐ Photographic and/or video documentation taken at move-out on [__/__/____] confirms condition of premises.

☐ Move-out inspection report / walk-through checklist was completed and is enclosed.

☐ No damage beyond normal wear and tear was present at move-out.

III. YOUR VIOLATIONS OF WISCONSIN LAW

A. Failure to Return Deposit Within 21 Days (Wis. Stat. § 704.28(2); ATCP 134.06)

☐ You have failed to return any portion of the security deposit within the 21-day period. The deadline was [__/__/____]. As of the date of this letter, [____] days have elapsed since the deadline.

☐ You have retained $[____] of the $[____] deposit without providing a compliant itemized statement.

B. Failure to Provide Compliant Itemized Statement (ATCP 134.06(2))

☐ You provided no written itemized statement within the 21-day period.

☐ The statement you provided was deficient because:

☐ It did not identify costs per item as required by ATCP 134.06(2)(b).

☐ It did not include receipts or invoices for deductions exceeding $50.00, as required by ATCP 134.06(2)(c). Specifically, the following claimed deductions exceed $50 and lack supporting receipts:

☐ It included deductions for normal wear and tear, which are prohibited under ATCP 134.06(3)(c).

☐ It included deductions for routine cleaning/repainting between tenancies, which are prohibited.

C. Unlawful Deposit Cap Violation (ATCP 134.02(3))

☐ You collected a security deposit of $[____], which exceeds one month's rent of $[____], in violation of ATCP 134.02(3). The excess amount of $[____] was unlawfully collected.

D. Failure to Provide Check-In Sheet (ATCP 134.06(1))

☐ You failed to provide a check-in sheet at the commencement of tenancy. Under Wisconsin law, this failure bars you from claiming damage that could have been documented at move-in. Your deductions for [________________________________] are therefore improper.

E. Improper Specific Deductions

The following deductions are improper under Wisconsin law:

IV. NORMAL WEAR AND TEAR — WISCONSIN STANDARD

Under Wisconsin law and ATCP 134, "normal wear and tear" is deterioration resulting from ordinary use of the premises. The following, if deducted by you, are improper:

☐ Minor scuff marks or nail holes from hanging artwork
☐ Faded or lightly worn carpet in high-traffic areas
☐ Faded or slightly yellowed paint from normal occupancy
☐ Worn finishes on bathroom fixtures from regular use
☐ Dirty mini-blinds or window tracks requiring standard cleaning
☐ Loose door handles, hinges, or drawer pulls from regular use
☐ Worn threshold strips or door sweeps
☐ Minor marks on walls from furniture placement
☐ Other: [________________________________]

V. DAMAGES DUE UNDER WISCONSIN LAW

A. Return of Deposits

B. Double Damages (Wis. Stat. § 704.28(3))

Under Wis. Stat. § 704.28(3), if a landlord fails to return the deposit or deliver a compliant itemized statement within 21 days, the tenant is entitled to double the amount wrongfully withheld, in addition to the deposit itself.

This is not limited to "intentional" withholding — the statute imposes double damages for failure to comply with the statutory procedures regardless of intent.

C. Attorney's Fees (Wis. Stat. § 100.20(5))

Under Wis. Stat. § 100.20(5), any person suffering pecuniary loss because of a violation of ATCP 134 may recover twice the amount of such pecuniary loss, together with reasonable attorney's fees. Attorney's fees to date are $[____] and continue to accrue.

D. Total Demand

VI. EVIDENCE IN OUR CLIENT'S POSSESSION

☐ Original lease agreement and all addenda
☐ Receipt or cancelled check showing deposit payment
☐ Copy of written return request submitted [__/__/____]
☐ Proof of delivery of written return request (certified mail receipt / email confirmation)
☐ Check-in sheet (or evidence that none was provided)
☐ Move-in photographs (dated [__/__/____])
☐ Move-out photographs (dated [__/__/____])
☐ Move-out video walkthrough
☐ Move-out inspection report / walk-through checklist
☐ Professional cleaning receipt from [________________________________]
☐ Forwarding address notification (dated [__/__/____])
☐ Your itemized statement (if provided) — dated [__/__/____]
☐ Written correspondence with you regarding the deposit
☐ Witness statement(s) regarding condition of premises at move-out
☐ Other: [________________________________]

VII. FORMAL DEMAND

We hereby demand that you, within fourteen (14) days of the date of this letter:

1. Return Deposits: Pay to our Client the full amount of all deposits: $[____]

2. Pay Double Damages: Pay to our Client double damages for wrongful withholding under Wis. Stat. § 704.28(3): $[____]

3. Pay Attorney's Fees: Pay reasonable attorney's fees under Wis. Stat. § 100.20(5): $[____]

4. Total Payment Required: $[____]

Payment must be made by certified check or money order payable to [TENANT NAME] and delivered to:

[LAW FIRM NAME]
[ADDRESS]
[CITY, WI ZIP]
Attn: [ATTORNEY NAME]
Re: [TENANT NAME] — Security Deposit

VIII. CONSEQUENCES OF NON-COMPLIANCE

If you fail to comply with this demand within fourteen (14) days, our Client is authorized and prepared to:

1. File in Small Claims Court: Commence action in Wisconsin Small Claims Court (Wis. Stat. § 799.01) for claims up to $10,000, or in Circuit Court for larger claims, seeking the deposit, double damages, attorney's fees, and court costs.

2. Enforce Double Damages: Wis. Stat. § 704.28(3) mandates double damages for non-compliant withholding — no proof of bad faith is required.

3. Report to DATCP: File a consumer complaint with the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP), which enforces ATCP 134 and may impose separate civil forfeitures. DATCP Complaint Line: (800) 422-7128.

4. Report to Attorney General: Submit a complaint to the Wisconsin Attorney General, Consumer Protection Unit, 17 West Main Street, Madison, WI 53703.

5. Judgment Enforcement: Upon obtaining judgment, pursue garnishment of wages or bank accounts, levy on personal property, and lien on real property, all as authorized by Wisconsin law.

IX. RESERVATION OF RIGHTS

This letter is sent without prejudice to any and all rights and remedies available to our Client under Wisconsin and federal law, all of which are expressly reserved. Our Client does not waive any claims, defenses, or rights by sending this letter or by any subsequent settlement negotiations.

Respectfully submitted,

[LAW FIRM NAME]

By: [________________________________]
[ATTORNEY NAME]
State Bar of Wisconsin No. [____]
[ADDRESS]
[CITY, WI ZIP]
Tel: [(___) ___-____]
Email: [________________________________]

Attorneys for [TENANT FULL NAME]

ENCLOSURES:

☐ Copy of lease agreement
☐ Copy of deposit receipt / cancelled check
☐ Copy of written deposit return request with proof of delivery
☐ Check-in sheet (or documentation of landlord's failure to provide)
☐ Move-in photographs (dated)
☐ Move-out photographs (dated)
☐ Professional cleaning receipt(s)
☐ Forwarding address notification
☐ Copy of landlord's itemized statement (if any)
☐ Authorization to represent

cc: [TENANT NAME]
[PROPERTY MANAGEMENT COMPANY, if applicable]
[PROPERTY OWNER, if different from addressee]
[CLIENT FILE]

WISCONSIN SECURITY DEPOSIT QUICK REFERENCE

WISCONSIN-SPECIFIC LEGAL REQUIREMENTS — KEY DISTINCTIONS

☐ Written-Request Trigger: Unlike most states where the clock starts at move-out, Wisconsin's 21-day period is triggered by the tenant's written request for return under ATCP 134.06(3)(c). Always send a written demand to start the clock.

☐ Receipts Mandatory for Deductions Over $50: ATCP 134.06(2) requires actual receipts or invoices — not just estimates — for any deduction exceeding $50. This is one of the strictest itemization requirements in the country. Failure to provide receipts renders the deduction improper.

☐ No "Intentional" Withholding Required for Double Damages: Wis. Stat. § 704.28(3) imposes double damages for procedural non-compliance regardless of whether the withholding was "intentional." This is broader than many other states' "bad faith" or "intentional" standards.

☐ One-Month Deposit Cap: ATCP 134.02(3) caps residential security deposits at one month's rent. Collection of excess deposits is itself a violation of ATCP 134 triggering DATCP enforcement and potential double damages under Wis. Stat. § 100.20(5).

☐ DATCP Enforcement: The Wisconsin Department of Agriculture, Trade and Consumer Protection independently enforces ATCP 134. A DATCP complaint can result in civil forfeitures against the landlord separate from the tenant's private suit.

☐ Routine Cleaning and Repainting Prohibited: ATCP 134.06(3)(c) expressly prohibits deductions for routine cleaning or repainting required to prepare the unit for re-rental. This goes further than the general "wear and tear" exclusion.

☐ Local Ordinances: Madison (Madison General Ordinance § 32.07) and Milwaukee may have additional tenant protections, including enhanced deposit procedures and longer cure periods. Verify local law for properties in these municipalities.

☐ Circuit Court vs. Small Claims: Small Claims Court (up to $10,000) is available under Wis. Stat. § 799.01. For larger claims including double damages and attorney's fees that exceed $10,000, file in Circuit Court.

SOURCES AND REFERENCES

• Wis. Stat. § 704.28 — Security Deposit Return: https://docs.legis.wisconsin.gov/statutes/statutes/704/28
• Wis. Stat. § 100.20(5) — Consumer Protection Enforcement / Attorney Fees: https://docs.legis.wisconsin.gov/statutes/statutes/100/20
• Wis. Admin. Code ATCP § 134.02 — Definitions / Deposit Cap: https://docs.legis.wisconsin.gov/code/admin_code/atcp/100/134/02
• Wis. Admin. Code ATCP § 134.06 — Security Deposit Procedures / Receipt Requirements: https://docs.legis.wisconsin.gov/code/admin_code/atcp/100/134/06
• Wis. Stat. § 799.01 — Small Claims Court Jurisdiction: https://docs.legis.wisconsin.gov/statutes/statutes/799/01
• Wisconsin DATCP Consumer Protection: https://datcp.wi.gov/Pages/Programs_Services/ConsumerProtection.aspx
• Wisconsin Attorney General Consumer Protection: https://www.doj.state.wi.us/consumer/consumer-protection
• Wisconsin Judicial Council — Small Claims Forms: https://www.wicourts.gov/formdisplay/SC-500(small_claims_forms).pdf

This template is for informational purposes only and does not constitute legal advice. Wisconsin security deposit law includes both statutory and administrative code provisions that interact in important ways. Consult a licensed Wisconsin attorney before filing suit.