Disclaimer: This blog post is meant for informational purposes only and does not constitute legal advice. Consult with a licensed attorney in Wisconsin for specific legal guidance.
When managing rental properties in Wisconsin, it’s important to understand the specifics of lease agreements in the state. These agreements help establish clear expectations and responsibilities, providing protection for both parties involved.
In this guide, we will explore what a Wisconsin lease agreement should include, its specific benefits for different parties, different types of lease agreements, and some of the Wisconsin rental property legal considerations you should be aware of.
Once you’re ready to start creating your own agreements, you can download our free Wisconsin rental property lease agreement template. You can use this template as a foundation and customize it to meet your needs.
What Is a Wisconsin Lease Agreement?
A Wisconsin lease agreement is a legally binding contract that outlines the terms and conditions between owners and tenants. This document serves as a foundation for establishing clear expectations and responsibilities and providing protection for both parties involved. Wisconsin lease agreement details the rights and obligations of both owners and tenants, helping to prevent disputes and misunderstandings.
By clearly outlining the terms of the rental agreement, property managers can better protect their interests and foster positive relationships with tenants. This guide will explore the components of a Wisconsin lease agreement, who needs it, and how it benefits different parties involved.
Who Needs a Wisconsin Lease Agreement?
Property managers, property owners, and tenants in Wisconsin all need a detailed, well-written lease agreement.
Property managers need a lease agreement to establish clear expectations and responsibilities with tenants. This document helps reduce the risk of disputes and misunderstandings, providing a legal framework for managing rental properties effectively.
For property owners, a Wisconsin lease agreement ensures that rent is paid on time, the property is maintained, and there is legal recourse in case of disputes.
Tenants also need a Wisconsin lease agreement to protect their right to the private enjoyment of the property and outline their payment responsibilities. This agreement offers protections against unjust evictions or rental practices, setting up a fair and transparent rental process for all parties involved.
Types of Wisconsin Lease Agreements
There are a few main types of Wisconsin lease agreements you should be familiar with as a property manager. Each caters to a specific leasing arrangement:
Fixed-Term Lease Agreements: A fixed-term lease agreement is the most common type of lease in Wisconsin. It lasts for a longer timeframe, such as 12 months, and outlines the terms and conditions between the owner and tenant. This agreement provides stability for both parties, since the terms are fixed for the entire period.
Month-to-Month Lease Agreements: A month-to-month lease agreement offers flexibility for both parties because it renews monthly. Either the owner or the tenant can terminate the lease with a 30-day notice. This type of lease is ideal for tenants or owners who prefer not to commit to long-term leases.
Sublease Agreements: A sublease agreement allows a tenant (the sublessor) to rent out all or part of the property to another party (the sublessee). It’s important to note that many primary lease agreements contain clauses prohibiting subletting without the owner’s consent. This type of lease is useful for tenants who need to vacate the property temporarily but do not want to break their lease.
Roommate Agreements: A roommate agreement is used when multiple tenants share a rental property. This agreement outlines the responsibilities and obligations of each roommate, such as rent payments, utilities, and household chores. It helps to prevent disputes and keeps all roommates on the same page regarding their living arrangements.
Commercial Lease Agreements: While our focus is on residential properties, it’s worth noting that commercial leases exist for business rental situations. They have different stipulations and considerations based on the nature of commercial activities. Commercial lease agreements are tailored to the specific needs of businesses and often include provisions for property modifications and maintenance responsibilities.
What Should a Wisconsin Lease Agreement Include?
A Wisconsin lease agreement should include these key components:
Parties Involved
Every lease agreement should begin by identifying the parties involved. Typically, this includes the owner, or lessor (the individual or entity offering the property for rent—this could be a private owner or a property management company), along with the tenant, or lessee (the individual or party renting the property). Be sure to use full legal names, eliminating ambiguity regarding the identities of the parties. Contact information for both parties should also be included to facilitate communication.
Lease Duration Dates
The start and end date of the lease term should be mentioned explicitly. Whether it’s a fixed-term lease (12 months, for example) or a more flexible month-to-month arrangement, defining the duration prevents any uncertainties regarding the lease’s expiration or renewal terms.
Rent and Security Deposit Information
This section should detail:
- Rent Amount: The monthly rent payable by the tenant
- Due Date: The day of the month on which rent is due
- Payment Method: Whether it’s through check, bank transfer, or other means
- Security Deposit: The agreement should specify the amount of the security deposit, the conditions under which deductions can be made (such as property damage or unpaid rent), and the timeline for returning the deposit to the tenant.
Occupancy Limits
This section stipulates that only the individuals listed on the lease reside in the property. Typically, this includes the tenant and immediate, excluding minors. This provision aims to prevent visitors from overstaying their welcome and helps maintain the property’s condition.
Owners have the legal right to enforce this rule and, if necessary, pursue eviction if tenants breach this requirement.
Property Management Company and Tenant Responsibilities
It’s equally important to outline the duties of both the property manager and the tenant. Property manager responsibilities span all aspects of taking care of a property, from keeping areas up to health and safety standards to collecting rent in a timely manner.
Typically, tenants are responsible for keeping the property clean, informing the property manager of any damages, and not engaging in any activity that could damage the property or disrupt neighbors. Including additional, property-specific terms in the lease can help prevent conflicts.
Pet Policies
It helps to have a clear pet policy. First, state whether pets are allowed. If they are, specify any restrictions regarding type, size, or breed. Some owners require a separate pet deposit to cover potential damages caused by pets. If pets are allowed, list any rules regarding their stay, such as leash requirements in common areas.
Wisconsin Lease Agreement Addenda and Disclosures
Below are key addenda and disclosures that should be part of a Wisconsin lease agreement. This list is not exhaustive, so consult a legal professional if you’re unsure about what to include in your own agreements.
Lead-Based Paint Disclosure
For rental units built before 1978, federal law requires the inclusion of a Lead-Based Paint Disclosure. This is important because lead-based paint can pose serious health risks, especially to children and pregnant women. Owners must take several steps to comply with this requirement:
- Fill out a lead-based paint disclosure form: This form provides information about any known lead-based paint hazards in the property.
- Provide an EPA-approved pamphlet: Tenants must receive the pamphlet “Protect Your Family from Lead in Your Home,” which educates them about the dangers of lead-based paint and how to protect themselves.
- Offer additional records or reports: If the owner has any records or reports about lead-based paint hazards, they must be shared with the tenant.
Owner or Agent Identification
The lease agreement should include the name and address of the property owner or the individual authorized to manage the property. This information is important for tenants to know who to contact for maintenance issues, rent payments, or any other concerns related to the property.
Move-In Checklist
One important section to include is a move-in checklist, also known as a check-in sheet, before the tenant moves in. This checklist helps document the property’s condition upon move-in and provides a reference point when determining deductions from the security deposit due to damages.
Smoke and Carbon Monoxide Detector Disclosure
Owners must disclose the presence and maintenance of smoke and carbon monoxide detectors in the rental property. This disclosure informs tenants of the safety measures in place and their responsibilities for maintaining the detectors.
Disclosure of Tenant’s Right to Receive Inspection Report
Tenants should also receive a copy of the inspection report that documents the condition of the rental property. This disclosure helps tenants understand the property’s condition and any existing issues that need to be addressed.
Disclosure of Domestic Abuse Protections
Owners should inform tenants of their rights and protections under Wisconsin’s domestic abuse laws. This disclosure provides tenants with important information about their legal protections, as well as resources available to them.
Utility Charges
If the rental property has shared utility meters or if utilities are not included in the rent, owners should disclose how utility charges are calculated and billed to individual tenants. This disclosure helps tenants understand their financial responsibilities and prevents disputes over utility payments.
Optional Disclosures and Addendums
While not required by Wisconsin law, there are several optional disclosures and addenda that property managers may choose to include in their lease agreements:
- Asbestos: Inform tenants if there is any known asbestos in the property and provide guidelines for safety.
- Bed bugs: Outline procedures for reporting and handling bed bug infestations.
- Mold disclosure: Inform tenants about any known mold issues and provide guidelines for prevention and remediation.
- Non-refundable fees: Clearly state any non-refundable fees, such as cleaning fees or pet fees.
- Shared utilities arrangements: Explain how utilities are shared and billed if the property has shared utility meters.
- Smoking: Specify whether smoking is allowed on the property and any designated smoking areas.
These optional disclosures and addenda assist with tenant management and limit owner liability.
Consequences for Excluding Mandatory Disclosures
Failing to include mandatory disclosures in a lease agreement can lead to serious consequences for property managers and owners. Non-compliance with federal- and state-mandated disclosures can result in fines, legal disputes, and potential lawsuits.
Tenants may challenge the lease agreement in court, leading to financial repercussions for owners, such as payment of damages or loss of security deposits.
Omitting required disclosures can harm the trust between the owner and tenant, as well, affecting future lease renewals or referrals.
Wisconsin Lease Agreement Laws and Regulations
Wisconsin lease agreements should reflect and uphold relevant state laws. These are the major legal considerations to be aware of and how they relate to different parts of your lease agreement. While these details can keep you informed, be sure to reach out to a legal professional for the most accurate and up-to-date legal requirements.
Security Deposits
States often have specific requirements on security deposit maximum amounts, return time periods, and penalties for failing to comply with these regulations. Wisconsin is no exception. There may also be requirements on where you store security deposits and what you can withhold. Generally, deposits should be returned in a timely manner and portions of the full amount can be withheld for unpaid rent and damages beyond normal wear and tear.
Right of Entry
Regarding an owner’s right of entry, it is considered best practice to provide at least 24 hours’ notice, though state law may require a longer notice timeframe. Owners are typically allowed entry for reasons such as performing repairs, conducting inspections, or showing the property to prospective tenants or buyers. Emergencies, where immediate access is necessary, are often an exception, but be sure to consult Wisconsin laws for the most current and specific requirements.
Grace Period
Wisconsin state law establishes a set grace period for rent payments. Tenants must adhere to the agreed-upon payment schedule to avoid late fees or other penalties. Property managers should clearly communicate the rent due date and any consequences for late payments in the lease agreement.
Late Fees
Wisconsin state law stipulates limits on late fees.. Late fees should be justified based on the inconvenience or additional administrative costs incurred by the owner due to the late payment, and must be listed in the lease agreement. Additionally, owners may charge an NSF for a bad check. This fee helps cover the administrative costs and inconvenience caused by a bounced check.
Taking the Next Steps with Your Wisconsin Lease Agreement
By understanding and adhering to the laws above, and including all the necessary components, you can create fair, transparent, and thorough lease agreements that set you up for a mutually beneficial leasing experience for everyone involved.
Ready to take the next step? Download our free Wisconsin rental property lease agreement template and use it to start crafting your own agreements today.