SB107 – Landlords’ Rights Bill

It’s likely to pass tomorrow (3rd Reading in the Assembly) and for those of you who lost track of all the evil that is going on at the capital, here’s a reminder.

Pending further clarification of the legal ramifications of the effects of SB107, this is what we think it will do. This impacts City of Madison, City of Fitchburg and Dane County ordinances that will be declared unenforceable with the passage of SB107. These are common sense local solutions to local problems. In fact, some of these practices are simply good business practices that will prevent future disputes between tenants and landlords.

Minimum Income Standards
– Landlords in Madison currently cannot deny a tenant solely because they do not make three times the amount of their income in rent, or apply any other minimum income standards that do not allow for a tenant to show that they have made a similar amount of income in the past and have paid a similar amount of income with that rent. MGO 32.12(7). These requirements are supposed to be disclosed at the time of application or when earnest money is paid and make sure tenants are informed of the information that can prove their amount of income.

Arrest and Conviction Records
Dane County landlords can only deny people housing based onconviction record if they are sex offenders or the offense is substantially related to housing AND it has been less than two years since they were placed on probation or parole, released from incarceration or paid a fine. MGO 39.03(4)(d) (County says 2 years from when someone has completed their sentence, was released from incarceration, completed probation or parole, completed electronic monitoring, or paid any outstanding fines or forfeitures related to the offense DCO 31.11(e))

Social Security Numbers
Dane County landlords cannot require a social security number for application unless it is required by state or federal law. DCO 31.02 Any request for that information will indicate that it is voluntary. MGO 32.12(7)(b)

Showing Ordinance
1. Madison landlords must provide 24 hours notice for landlord entry for showing the apartment MGO 32.05(1)(d) and FO 28.05(1)(d) and will not modify that rule in a NON-STANDARD RENTAL PROVISION. MGO 32.05(1)(e)
2. Madison landlords can only enter for the purposes of showing an apartment will be limited to a three day period and three hours per day. MGO 32.05(1)(e)
3. Madison landlords cannot show the apartment until ¼ of the lease is over or will notify the tenant in writing at the time the lease is signed if they will do it sooner.

Entering into a Lease before ¼ of Lease is Over
Madison Landlords cannot ask Tenants to renew the lease until ¼ of the lease is over. MGO 32.12(8)

Occupation, Rental History, Credit Information
Cities under this bill also cannot pass any laws about the above, but I don’t think this impacts any currently passed laws.

Security Deposits
Madison and Fitchburg landlords:
1. Are supposed to use both check-in and check-out forms MGO 32.07(5)(d), FO 28.06(5)(d) and will use a NON-STANDARD RENTAL PROVISION to acknowledge receipt of the forms. MGO 32.07(5)(e)
2. Are supposed to ask the tenant for their forwarding address on the check-out form. MGO 32.07(5)(d), FO 28.06(7)
3. Are supposed to limit the security deposit to one month’s rent. MGO 32.07(2)(b), FO 28.06(2)(a)
4. Cannot increase a security deposit during the same, amended, renewed or new rental agreement. MGO 32.07(2)(b)
5. Have to pay interest on security deposits. MGO 32.07(3), FO 28.06(3)
6. (Madison only) Should provide photos for any deductions from a security deposit that are photographable. MGO32.07(7)(b)
7. Should not collect a security deposit from both a tenant and a subleasing tenant. MGO 32.07(2)(d)
8. Should provide an itemized list of deductions from the security deposits that includes recipets, estimates and hours and wage rates charged for damages and cleaning. MGO 32.07(7)(b), FO 28.06(9)(b)

Earnest Money
Madison and Fitchburg landlords currently cannot
1. Charge the tenant for credit check fees. (MGO 32.10(3), FO 28.09(2)(a)
2. make deductions are made from earnest money unless they return an itemized written list of deductions. MGO 32.10(3)©, FO 28.09(2)(b)

SOMETHING’S MISSING
In case you’re wondering, yes, this is an odd list of random things that are being repealed, I could make a long list of other things that they are not repealing but would have expected, especially Section 8 – yes, landlords still will not be able to deny people because they have section 8 in Dane County. Only the items above will be changed at this point.

Amendment
C. Taylor, Pasch, Hulsey, E. Coggs, Clark, Roys, Pocan, Mason, Turner, Hebl, Pope-Roberts, Young, Richards and Berceau introduced an amendment that would grandfather in current laws including in Madison, Fitchburg and Dane County. This may be debated tomorrow with the rest of the bill.