App fees limited to $25 in WI??

Question

Dawn Anastasi · Answer

Here is the actual WI statute:

704.085  Credit and background checks.(1) (a) Except as provided under par. (b), a landlord may require a prospective tenant to pay the landlord's actual cost, up to $25, to obtain a consumer credit report on the prospective tenant from a consumer credit reporting agency that compiles and maintains files on consumers on a nationwide basis. The landlord shall notify the prospective tenant of the charge before requesting the consumer credit report, and shall provide the prospective tenant with a copy of the report.(b) A landlord may not require a prospective tenant to pay for a consumer credit report under par. (a) if, before the landlord requests a consumer credit report, the prospective tenant provides the landlord with a consumer credit report, from a consumer credit reporting agency that compiles and maintains files on consumers on a nationwide basis, that is less than 30 days old.(2) A landlord may require a prospective tenant who is not a resident of this state to pay the landlord's actual cost, up to $25, to obtain a background check on the prospective tenant. The landlord shall notify the prospective tenant of the charge before requesting the background check and shall provide the prospective tenant with a copy of the report.

Adam Gollatz · Answer

I think the number actually went up slightly from 25. Anyway, you’re not charging the fee, cozy is, so you’ll be fine. I know lots of landlords that use those services and I never heard anyone reimburse tenants.

Sarah Prokop · Answer

@Dawn Anastasi

Hi Dawn,

I’m a new landlord in WI and am confused about chapters 704 and ATCP 134. ATCP 134 states a max of $20 which conflicts with 704. How do we know which one we should be following?

Hunter Spear · Answer

I would recommend checking out Zillow's application process. They charge $25.00 per adult for a background and credit check.

Patrick M. · Answer

@Dawn A. follow up question: have you been using cozy for your background/credit checks or do you prefer Mysmartmove?

Thanks

Dawn Anastasi · Answer

@Patrick M. I had asked this question of Cozy back in October 2017 and this is what they said: "With Cozy, the actual cost of the screening reports to the landlord is $0. As you know, the cost of the screening reports is paid directly by the tenant to Cozy. The reports are delivered directly to the tenant, since they are the purchaser, and then the tenant shares those reports with the landlord."

Patrick M. · Answer

@Dawn A.thanks for posting.  Again though if I am listed through cozy, not paying the cost myself, requiring tenant submit a background check and credit check through cozy at their cost would not be in violation of the law?

Patrick M. · Answer

@Adam Gollatz read that the number went up by $5.  But the article I read it made it sound like it went from $20 up to $25.  Not $25 up to $30.  However that's a good point that cozy is charging them 39.99 for a background check and credit check..although it's required per my screening.

Mike McCarthy · Answer

Check the law. I don’t know whether a background/credit check is automatically rolled into the ‘application fee’ or not. I’d think that the checks may be in addition to the app fee (which in the case of Cozy, you’re not charging an application fee)

App fees limited to $25 in WI??

Most Popular Reply