Great article!!! Can a landlord charge application fee in Wisconsin?

[Charles Clark]

Can A Landlord Charge an Application Fee To A Prospective Tenant In Wisconsin? 

Posted by Tristan R. Pettit, Esq. in Rental Applications, Application Fees

The article starts off with a story of a lawyer getting a call from his client to discuss the property management company he uses for his properties. The client wants to talk about how his PM company charges over the credit and background check costs that incurred by doing the checks. According to the article, the application fee must either be returned to the tenant or applied to the tenant's rent or security deposit.  

I was shocked to learn this. Will this effect how you screen tenants in the state of Wisconsin? 

[Peter Falk]

Not an attorney, but is my understanding you can charge applicants your actual cost for running a credit check on them (up to $25), but do think an application fee must be refunded if not leased.  That is why most owners/companies don't seem to bother with application fees in the Madison, WI market as it's not worth the hassle of collecting it and refunding it (it's been very competitive with often multiple applications, so would be mailing checks back much of the time.

I think this section covers it and appears like LL could retain it if tenant approved and then decides not to sign the lease, but LL has a list of caveats to disclose up front about lease terms, etc.  They can withhold for the credit check up to $25 (again confirm current if you want).

ATCP 134.05.