Tristan's Landlord Tenant Blog - Landlord Tenant Law Milwaukee WI

Don’t Miss AASEW’s Next Meeting Featuring Steve Smullin on Real Estate Trading

May 15

Posted by Tristan R. Pettit, Esq. in AASEW, Investing In Rental Property | No Comments

Come join us at the next AASEW monthly membership meeting next week.

When: Monday May 21st at 7 PM

Where: The Best Western, 1005 S. Moorland Road, in Brookfield

Who: Steven J. Smullin – Real Estate Problem Solving Since 1988.

Topic: Real Estate Trading – It’s All About the Benes . . . That’s the Benefits, not the Benjamins.

Cost: Free to current AASEW members, $25 to others.

Note: Starting at our May meeting we will be introducing a landlord/tenant law education component to each of our meetings that will last approximately 10-15 minutes. In anticipation of the next Landlord Boot Camp in October, Attorney Tristan Pettit will be taking a single issue from his Landlord Boot Camp materials and teaching it at each meeting. This month Tristan will talk about LATE FEES.

About our Speaker:

Steve is a commercial investment real estate broker, counselor, exchangor, investor, educator, and long time practitioner using creative solutions to real estate related problems. Steve has closed transactions involving the FDIC, RTC, US Marshall, US Bankruptcy Court, Banks and numerous others since the mid 1980′s … following hundreds of cases, attending dozens of sheriff and judicial sales and assisting clients in the acquisition and disposition of properties.
Steve is a member of the National, Illinois and Chicago Associations of Realtors and a Charter Member of the Northern Illinois Commercial Association of Realtors where he has served on the Board of Directors. He adheres strictly to the Code of Ethics of these organizations and applies their principles in everyday life. In addition he has served on the Board of Directors of the Chicago Area Real Estate Exchangors in numerous capacities including serving as President.

Steve routinely studies formulas, exchanging, financial analysis, and property management and has studied creative real estate techniques and strategies with
some of the most brilliant minds throughout the country. He is a long time member of the Chicago Creative Investors Association and active participant at the National Council of Exchangors, The Society of Exchange Counselors and numerous other marketing and educational organizations.

Steve has presented programs and workshops for Chicago Creative Investors Association, Lake County Property Investors Association, West Suburban Landlords Association, Milwaukee Real Estate Investors Association, and for the ValueHoundAcademy.

Steve’s presentations and workshops have included:

Formulas, Brainstorming & Problem Solving - The days of throwing money at real estate are over. It’s no longer possible to solve today’s problems with yesterday’s solutions. Identify the real problem, use effective ideation and brainstorming to identify possible solutions and then, take appropriate action.

Assessing the Situation - The facts and information needed for a successful and profitable deal. Income and Expense analysis; The Documents and Information YOU NEED to evaluate the offering; The Documents YOU NEED to Close the Deal; Sources and Resources.

Real Estate, It’s About The Benes … That’s The Benefits! Not The Benjamins - The Pros and Cons of Cash and Alternative Currencies; How Benefits oriented real estate transactions create a WIN for all involved.

How To Get What You Want … When You Can’t Sell What You’ve Got – Create benefits oriented real estate transactions that provide WINNING solutions for all involved. “Selling the Sizzle” and “Buying the Benefits”; Takers vs. Buyers; The Benefits of Barter; “Packaging” a Property for Disposition.

It should be a great meeting. Hope to see all of you there.

What Can A Landlord To Do With A Tenant’s Abandoned Personal Property Under Wisconsin’s New Law?

May 10

Posted by Tristan R. Pettit, Esq. in Abandoned Property | 2 Comments

With the signing into law of 2011 Wisconsin Act 143, a landlord’s obligations with regard to a tenant’s abandoned property has just gotten much easier.

Prior to Act 143 a landlord had three options with respect to a tenant’s abandoned property. The landlord could:

1. Store the tenant’s abandoned property on or off the premises and take a lien on the property for the actual and reasonable cost of removal and storage of the property, or

2. Dispose of the property if the tenant didn’t reclaim it within 30 days of the landlord sending the tenant written notice of the abandoned property, or

3. Store the abandoned property without a lien and return it to the tenant.

Some landlords got themselves into trouble under the old law. Some would forget to send out the abandoned property notice to the tenant. Some would dispose of the abandoned property prior to 30 days after mailing the notice. Others would refuse to return the tenant’s property unless the tenant paid up all past due rent (this is called distrain and was outlawed years ago). If the tenant’s abandoned property had value sometimes these landlord would get sued. In an effort to educate landlords about this law I even drafted an Abandoned Property Notice form that was sold at Wisconsin Legal Blank noting the 3 options the landlord had.

Wisconsin’s new law regarding tenant’s abandoned property is more simple.

As long as a landlord provides written notice to the tenant — at the time that the tenant enters into the rental agreement or renews the rental agreement – that the landlord is NOT going to store any of the tenant’s abandoned personal property, a landlord is allowed to immediately dispose of the abandoned property in any manner that the landlord, in his sole discretion, feels is appropriate.

There are two exceptions to the new law allowing a landlord to immediately dispose of a tenant’s abandoned property.

First, in the case of prescription medication or prescription medical equipment, a landlord must hold such items for 7 days from the date of discovery to allow the tenant time to retrieve those items. If the tenant contacts the landlord within the 7 day period and requests the return of the medical items the landlord shall promptly return them to the tenant. After the 7 days have passed, the landlord is allowed to dispose of the medical items in any way that he determines to be appropriate.

Second, if the tenant has abandoned a titled vehicle or a mobile or manufactured home, the landlord must give the tenant — and any secured party that the landlord has actual notice of — written notice of the landlord’s intent to dispose of the titled vehicle or mobile/manufactured home, personally or by regular or certified mail addressed to the tenant’s last known address.

So for those of you that want to avail yourself of this streamlined process of the key is to provide the required “notice” language to the tenant. It makes the most since to simply include the required language in your rental agreement and any renewal agreement.

Below is the sample notice language that I added to the rental agreement that I draft for Wisconsin Legal Blank.

ABANDONED PROPERTY: Landlord will not store any items of personal property that tenant leaves behind when tenant vacates, except for prescription medication or prescription medical equipment, which will be held for seven (7) days from the date of discovery. If tenant abandons a manufactured or mobile home or a titled vehicle, landlord will give tenant and any other secured party that landlord is aware of, written notice of intent to dispose of the property by personal service, regular mail, or certified mail to tenant’s last known address.

Please be aware that if you fail to provide the required notice to your tenant then you will be required to abide by the old law and follow one of the three options explained earlier in this post.

It is important to note however, that this new law does NOT relieve a landlord of his duty to evict a tenant through the judicial eviction process if the tenant has not vacated. A landlord should not just assume that the tenant’s property is abandoned and the tenant has vacated the unit. A landlord still must make the very important (and sometimes costly) analysis on a case by case basis as to whether or not the tenant is still living in the unit or whether he has vacated and abandoned his property. This new law does not prevent a tenant from suing a landlord for double damages and attorney’s fees for engaging in a self-help eviction. All this law does is make it simpler and easier to dispose of a tenant’s abandoned property once the tenant has vacated the rental property.

Tags: Abandoned Property, Act 143, Wisconsin Landlord Law

Joint Legislative Council Gives Clarification To Wisconsin’s New Landlord’s Omnibus Law

Apr 27

Posted by Tristan R. Pettit, Esq. in AASEW, ATCP 134, Legislation | 4 Comments

You will recall from my earlier post that I had some concerns about the new Landlord’s Omnibus Law (Act 134). One of my main concerns was that it was unclear from the wording of Act 143 whether or not a violation of chapter 704 would give rise to a claim by a tenant that would entitle the tenant to double damages and attorney’s fees if successful.

The portion of Act 143 that concerned me was Section 36, which creates Wis. Stats. sec 704.95, and reads as follows:

704.95 Practices regulated by the department of agriculture, trade and consumer protection. Practices in violation of this chapter may also constitute unfair methods of competition or unfair trade practices under s. 100.20. However, the department of agriculture, trade and consumer protection may not issue an order or promulgate a rule under s. 100.20 that changes any right or duty arising under this chatper.

My concern was that tenants might start filing suits against landlords alleging that they were entitled to double damages and attorny’s fees if a landlord violated any portion of chapter 704. Could a landlord be on the hook for double damages and attorney’s fees if he drafted a 5 day notice improperly or served the notice incorrectly?

Because of this concern, the Apartment Association of Southeastern Wisconsin (AASEW) attorney wrote to the State of Wisconsin’s Joint Legislative Council which authored the earlier memo summarizing the new Act 143. Specifically the AASEW asked staff attorney Margit Kelley to clarify section 36 of her Act Memo dated March 26, 2012.

I have good news to report. Attorney Kelly in her letter to the AASEW’s attorney, indicated that any violation of Chapter 704 does not automatically lead to a cause of action for double damages and attorney’s fees.

Her verbatim response — referring to section 36 (now Wis. Stats. section 704.95) – was as follows:

This means that DATCP may promulgate and enforce any administrative rules that are in line with ch. 704, Stats., including the provisions of the Act that affect that chapter, under DATCP’s authority to regulate unfair methods of competition or unfair trade practices in s. 1002.0, Stats. Section 100.20(5), Stats., then, in turn allows an individual right of action for a violation of any rules promulgated under s. 100.20, Stats., and allows for recovery of costs, reasonable attorney’s fees, and twice the amount of any pecuniary loss.

Translation: DATCP can create rules to add to ATCP 134 that are line with chapter 704, but a violation of ch. 704 alone does not give rise to a cause of action that entitles a tenant to double damages and attorney’s fees, unless that section of the statute is also contained in ATCP 134.

So for instance, if a landlord was found to have violated Wis. Stats. section 704.28, entitled withholding from and return of security deposits, a tenant would be entitled to receive an award of double damages and attorney’s fees because the language of sec. 704.28 is ALSO contained in ATCP 134 – specifically ATCP 134.06(2).

Along those same lines, if a landlord was found to have violated Wis. Stats., sec. 704.44, entitled residential rental agreement that contains certain provisions is void, a tenant would als be able to recover double damages and attorney’s fees as the language of sec. 704.44 is ALSO contained in ATCP 134 – specifically ATCP 134.08.

As long as the courts are made aware of this, it now appears that landlords can breathe a sigh of relief as they will no longer have to worry about being ordered to pay double damages and attorney’s fees to a tenant for improperly drafting or serving a 5 day notice, or any other portion of ch. 704 that is not also included in ATCP 134.

Now we just have to worry — as we have always had to – about having the court dismiss our evictions because of an improperly drafted or served 5 day notice : )

Tags: Landlord-Tenant Law, Landlord's Omnibus Law. Act 134, Wisconsin Joint Legislative COuncil

New Landlord Omnibus Law: Odds and Ends

Apr 11

Posted by Tristan R. Pettit, Esq. in Commercial L-T Law, Legislation, State of Wisconsin | 1 Comment

There has been a lot of discussion about the new Landlord Tenant law in Wisconisn (2011 Wisconsin Act 143) since it became law on March 31, 2012. Some people’s views seem similar to mine while others have interpreted the law completely differently than I do. Here is a link to one law firm’s summary that in my opinion is completely off base, but then again they are Minnesota lawyers so we may have to give them a pass : ). But really guys, the new law did not create a new right for landlord’s do deduct from a tenant’s security deposit — have you ever heard of ATCP 134.

I guess only time will tell how the law in interpreted by the courts in Wisconsin. One thing that I know for sure is that the politicians in Madison will be unable to correct any errors, or clarify and vagueness, in the new law until 2013 when they are back in session. So we are stuck with this for awhile and must make do.

The AASEW will be devoting it’s June membership meeting (June 18, 2012 at 7 pm) to the new law and we hope to invite both landlord advocates and tenant advocates alike to present so that all sides can be presented. You will not want to miss this meeting. Come learn what the new law is and what you need to do in order to be in compliance. There will be no charge to AASEW members but we will be charging $25 for non-members to attend.

While I personally do not have anything new to add on the new law that I haven’t said already in prior posts, I thought I would provide links to several items relevant to the new law that people might find interesting and useful.

Here is a copy of the newly enacted law – Act 143

Here is an overview of the new law by the Wisconsin Legislative Council

Here is a copy of the newly revised Chapter 704 (Landlord and Tenant) of the Wisconsin Stattutes which includes all of the changes/additions — so I no longer have to carry around Act 143 : )

Here is an article that I recently wrote on the new law for the Wisconsin State Bar’s Inside Track blog which includes several interesting comments on the new law by local lawyers.

Here’s a blog article by my friend Tim Ballering about how the new law affects those landlords who are currently using a crime free lease addendum or something similar.

Thanks for reading

Tags: 2011 Wisconisn Act 2011, Landlord Onmibus Law

Newly revised Landlord-Tenant Law Forms Available at Wisconsin Legal Blank on April 2 and April 3, 2012.

Apr 2

Posted by Tristan R. Pettit, Esq. in Notices, Rental Agreements, Rental Documents | 4 Comments

Wisconsin’s Landlord Omnibus Law (Act 143) went into effect today – April 1, 2012. As a result of the new law it was necessary for me to update many of the landlord-tenant law forms that are sold at Wisconisn Legal Blank.

As of Monday, April 2, 2012, the following revised forms will be available:

1. Residential Rental Agreement (Form #19)

- Added language required in order for landlord to be able to dispose of tenant’s abandoned property immediately after they vacate.

- Added language about any illegal clause in the rental agreement being severable from the n9on-illegal clauses.

- Correction of some grammar and punctuation mistakes.

2. Nonstandard Rental Provisions (Form #984)

- Added langauge required in order for landlord to be able to dispose of tenant’s abandoned property immediately after they vacate.

- Revised language as to when landlord must return security deposit or supply security deposit itemization letter when tenant vacates prior to end of lease term.

- General revisions to the language of each nonstandard rental provision to comply better with the holding in the Tschantz case.

3. Notice of Rent Increase in Month to Month Tenancies (Form #332)

- Added langauge required in order for landlord to be able to dispose of tenant’s abandoned property immediately after they vacate.

4. Residential Lease Renewal or Notice To Vacate (Form #970)

- Added langauge required in order for landlord to be able to dispose of tenant’s abandoned property immediately after they vacate.

5. Tenant Inspection Sheet (Check-In – Check-Out Form)

- Revised the title of this form to comply with the title used in the new law.

NOTE: It is now required that a landlord give this document to tenant’s upon occupancy. So if you have not previously used this document you need to start doing so now.

As of Tuesday, April 3, 2012 the following revised forms will be available for purchase at Wisconsin Legal Blank

6. 5 Day Notice To Pay Rent or Vacate (Form #328)

- Changed the word “may” to “shall” when advising the tenant that landlord is entitled to holdover damages of, at a minimum, double the daily rent for the holdover period.

- Added a line for “Total Amount Due”

7. 5 Day Notice To Correct Breach or Vacate (Form #330)