Sep 11

What I’ve seen in Milwaukee County Small Claims Court over the years is mixed. Some Court Commissioners accept §704.07(3)(a) [below] as applying and require the tenant to “reimburse the landlord for the reasonable cost” although a couple of commissioners have taken ATCP 134.06(4)(b)  to mean actual costs only. But a strong argument against this position is ATCP 134.06(4)(a) also allows for “reasonable compensation”

There was a published case, which for whatever reason I cannot find, that allowed an owner’s $15 per hour labor charge.

There is also a unpublished Court of Appeals opinion where an owner had an hourly rate in his non standard “The court also awarded the Hofackers $45 per hour for labor, pursuant to one of the [nonstandard] provisions.”  I would not rely on this case as the amount per hour sounds excessive to me, plus it was a District III decision, which often rules far differently than District I. Also note that the landlord ultimately lost the case at the trial court on other issues and was charged $11,417 in attorney fees plus $3,796.64 in double damages for withholding a $1,300 deposit, some of which the court allowed as a deduction.  This case should be a warning to those who overstate charges even when they are entitled to withhold all or part of the deposit.

Despite Hofacker being a poor case, having a nonstandard provision where the labor rate is more inline with normal labor costs may be helpful for owners that do their own work.

The best option though for those who do some work on their properties, but also pay to have work done, is to direct the paid labor towards deposit type issues and work on items that will not be charged to the tenant yourself

The Statute and Admin Code

§704.07(3)(a) If the premises are damaged by the negligence or improper use of the premises by the tenant, the tenant must repair the damage and restore the appearance of the premises by redecorating. However, the landlord may elect to undertake the repair or redecoration, and in such case the tenant must reimburse the landlord for the reasonable cost thereof; the cost to the landlord is presumed reasonable unless proved otherwise by the tenant.

ATCP 134.06(4)(b) No landlord may intentionally misrepresent or falsify any claim against a security deposit, including the cost of repairs, or withhold any portion of a security deposit pursuant to an intentionally falsified claim.

ATCP 134.06(4)(a) If any portion of a security deposit is withheld by a landlord, the landlord shall, within the time period and in the manner specified under sub. (2), deliver or mail to the tenant a written statement accounting for all amounts withheld. The statement shall describe each item of physical damages or other claim made against the security deposit, and the amount withheld as reasonable compensation for each item or claim.

P.S. Reread the disclaimer:  I am “just a landlord,” NOT an attorney or even a doctor despite having terrible handwriting. If you need legal advice or have appendicitis, don’t rely on something you read on the internet and do it yourself. Rather, hire a competent professional.

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