1. Landlord/Tenant Regulation Reforms: The
Challenges Facing Affordable Rental Housing in
Wisconsin
SB 179 Policy Analysis
University of Wisconsin – Madison
Michael Sztanski
Legislative Internship 427
December 15, 2015
2. I. Executive Summary
Originally introduced by Senators Lasee and Schultz, Senate Bill 179 and its
amendments are a common sense approach to protecting the rights of both landlords and
tenants. The Landlord/Tenant Regulations Reform seeks to provide several improvements
to the current precedent under SB 179 to mend the relationship between landlords and
tenants. Assuming the Governor signs SB 179 into law, he expresses support for the bill
relating to: miscellaneous provisions related to rental and vehicle towing practices and
evictions proceeding, prohibitions on enacting ordinances that place certain limitations or
requirements on landlords, providing an exemption from emergency rule procedures,
granting rule making authority (Wisconsin State Legislator). In laymen terms, Wisconsin
tenants deserve quality, affordable housing and landlords deserve to act in protection of
their business’s interest. Essentially, when bad tenant act badly, good tenants pay. The
rules and regulations for low-income housing projects must be amended to improve the
quality of living for tenants while landlords need a justified regulatory environment to
cater to the needs of the tenant. SB 179 will affect and change current law tailored
according to the existing means in efforts to create a mutually inclusive relationship
amongst all parties involved.
II. SB 179 in Motion
SB 179 passed the Wisconsin State Senate on September 17, 2013 and will need a
concurrence vote in the State Assembly before being signed into law by the Governor.
Certain provisions require rulemaking before they will take full effect. On October 16,
2013, the State Senate accepted SB 179 after a minor amendment was revised. The bill
passed 18-15 and now goes to the Governor who has 30 days to call for the bill and sign
3. it. This bill will make major changes to Wisconsin Landlord Tenant law and expedite the
eviction procedure if dealt accordingly. Also, this bill seeks to amend several of the
unintended consequences of ACT 143, which is also in direct relation to landlord/tenant
law. This bill will greatly affect the political landscape across the state of Wisconsin and
protect the rights of both landlords and tenants. Senator Frank Lasee pursues all legal
actions to grasp the notion of affordable rental housing for the residents of Wisconsin and
its economy. As the Governor signs SB 179 into law, we can reveal the clearly portrayed
problems, how to fix them, and ultimately a model for the rest of the nation.
III. Introduction And Problem Statement
SB 179 seeks to replace the current law by providing the necessary rules and
regulations relating to landlord-tenant law, small claims actions, and towing of vehicles.
For all intensive purposes, we will focus less on the towing of vehicles to delve deeper
into the specifics of the landlord-tenant bill sweeping across the state. The issue facing
the State of Wisconsin is the on-going challenge of restoring commitment and faith to
current landlord-tenant law. The policy analysis will review the alternatives available to
mend the once broken relationship between landlords and tenants. The policy issue at
stake is simply provisions to clarify existing law that has been tampered with. Lastly, one
might ask: Why does this issue deserve considerable amounts of attention? In short,
additional costs and risks to landlords lead to an increase in rental housing prices, which
will hopefully lead to more rental opportunities in the future. Rental opportunities for
tenants at a lower price not only satisfy their wallets, but also reassure the quality of
living.
IV. Evidence: Restrictions on Local Ordinances
4. Under current law, a city, village, town, or county (municipality) is prohibited from
enacting or enforcing certain ordinances relating to landlords and tenants, such as an
ordinance imposing a moratorium on eviction actions or an ordinance that places certain
limitations on what information a landlord may obtain and use concerning a prospective
tenant. [ss. 66.0104 and 66.1010, Stats.]
Senate Bill 179 provides additional information that ultimately limits a tenant’s
responsibility or a landlord’s right to recovery. First, SB 179 will limit a tenant’s
responsibility that occurs during the tenant’s occupancy of the premise. Second, SB 179
will limit a tenant’s responsibility to recover for other costs, payments, or damages for
which the tenant is responsible for under the original rental agreement. In Senator Frank
Lasee’s regulation reform, he evidently suggests, “The reforms include ordinances that
would limit a landlord from recovering damages from someone who damages a rental
property.” Essentially, the landlord is not permitted to collect profits on anything that
isn’t originally stated in the rental agreement. Therefore, SB 179 limits a tenant’s
responsibility and reinsures the tenant that the landlord is not taking advantage of their
security deposit or other miscellaneous damages.
Next, SB 179 requires a landlord to communicate to tenants and municipalities all
information regarding the rules and regulations if they are not stated under federal or state
law. In Senator lasee’s words, “The reform prohibits ordinances that would require
landlords to provide information to the municipality other than simple contact
information.” As demonstrated, the Senator suggests that ordinances required providing
information to the tenant or municipality is prohibited. In doing so, he notes that this
would allow basic landlord registries. The Senator seeks to find a happy medium between
5. the tenant and landlord to negate additional costs and risks. While affordable rental
housing is a sensitive topic for tenants, landlords must act in the best interest of the state
to ensure the well being of each resident’s. It comes to no surprise that landlords wish to
charge the properties at their highest value, but when dealing with low-income families-
all conditions must be considered. Senator Lasee also includes that; “The reforms
prohibit ordinances that would require landlords to provide information to tenants that
isn’t related to the landlord/tenant relationship.” This here regulates any loophole in the
system that would give too much authority to the tenant by reassessing the information
revealed. The relationship between a tenant and a landlord should be mutually inclusive
with few other parties involved, unless it is the state wishing to impose a necessary
monetary change.
V. Notification to a Prospective Tenant of Building Code or Housing Code
Violations.
Under current law, if a landlord has actual knowledge of any uncorrected building
code or housing code violation in the dwelling unit or a common area that presents a
significant threat to the prospective tenant’s health or safety, the landlord must
disclose the violation to a prospective tenant before entering into a rental agreement
or accepting any earnest money or security deposit. [s. 704.07 (2) (bm), Stats.]
Senate Bill 179 provides that the landlord must disclose any type of written notice
of the violation from a housing code enforcement agency. Similarly stated under current
law, but strengthened in in SB 179: Under this bill tenants must still be told of known
defects before signing a lease. Short and concise, this reform reassures the tenant that
safety is of thee utmost importance when it comes to leasing an affordable housing unit.
6. This reform will ultimately improve the current regulation by demanding a written
statement from an enforcement agency to evaluate the full extent of the danger. It seems
clear that before the introducing of SB 179, the landlord could verbally disclose the
violation of any health or safety concerns. Under this bill, tenants will be aware of the
leasing unit’s history and landlords will be responsible for conveying the message to
future residents.
V. Commission of Crimes on Rental Property
Under current law, if a lease contains any of a list of prohibited provisions, the lease is
void and unenforceable. Among the prohibited provisions is a provision that allows the
landlord to terminate the tenancy of a tenant if a crime is committed in or on the rental
property, even if the tenant could not reasonably have prevented the crime. [s. 704.44
(9), Stats.]
Senate Bill 179 repeals the provision of current law and replaces it with extra
protections to victims. As one of the major noteworthy provisions to SB 179, this bill will
lend extra protection to victims or domestic violence. Understanding the importance of
this section of the proposed bill is essential to creating a conducive regulatory
environment for all residents to feel secure and safe. According to Senator Frank Lasee,
“A new domestic violence protections disclosure will be required with leases that have
‘crime free’ provisions.” In Laymen terms, consider a relationship where one spouse is
the sole ‘bread-winner’ of the family, while the other resident provides for the family in a
variety of other way, but not financially. If sexual assault or domestic violence occurs in
the residence, is it fair to evict both residents based solely on the commission of a crime?
7. In short, absolutely not. Therefore, if someone who lawfully resides with the tenant is the
victim of that crime, then the victim should be protected under state law.
Generally, a relationship consisting of two people sign one lease agreement and
are held to the same standards. However, in certain situations the landlord will evict
tenants because of criminal activity to protect other innocent renters. Landlords enable
the right to use their own proper judgment to secure the premises and provide a safe
housing option for low-income families. To one’s surprise, in Wisconsin alone, low-
income partnerships oftentimes lead to domestic abuse stemming from frustration and a
lack of guidance. Currently, landlords remain unable to evict a tenant based on the status
of the victim exposed to abuse.
Lastly, SB 179 grants a residential tenant the right to terminate a lease agreement
when faced with an imminent threat of serious harm. As a victim of domestic abuse,
sexual assault, or abuse, the lease agreement should grant tenants the ability to
confidentially digress from a dangerous situation. If the tenant or a child of the tenant
faces an imminent threat then they should be redirected to another unit that takes specific
precautionary measures. The cancellation of a lease agreement is virtually impossible, but
at times of despair and misery all measures must be accounted for. Also, any lease that
does not include the proposed notice regarding extra protection of victims should be void
immediately.
VI. Termination of Tenancy in Mobile or Manufactured Home Communities
for Threat of Serious Harm
Under current law, a landlord may terminate the tenancy of a tenant if the tenant
commits one or more acts, including verbal threats, that cause another tenant, or a
8. child of that other tenant, who occupies a dwelling unit in the same single-family
rental unit, multi-unit dwelling, or apartment complex as the offending tenant, to face
an imminent threat of serious physical harm from the offending tenant if the offending
tenant remains on the premises. [s. 704.16 (3), Stats.]
The reform in SB 179 also authorizes a landlord to terminate the tenancy of the
perpetrator. In relation to the commission of crimes on rental property, the perpetrator
is the threat or risk. So, it is essential to remove the innocent tenant from the
perpetrator. In manufactured home communities, under these circumstances the
landlord is reliable for the removal of the perpetrator to restore protection.
VII. Timing of Appearance and Who May Appear in Eviction Action Trials
a. Under current law, the summons in an eviction action specifies the date
that the defendant must appear in court. That appearance date must be set at
not less than five days or more than 30 days after the summons is issued. [s.
799.05 (3) (b), Stats.] Also, the court generally sets the matter for a trial or
hearing when the tenant makes the initial appearance. Current law does not
specify the required timing of the trial or hearing. [s. 799.20 (4) and 799.206
(3), Stats.]
Senate Bill 179 changes the appearance date after the summons is issued. In
Senator Frank Lasee’s testimony for SB 179 he states, “The eviction process will be
streamlined requiring that the process must be completed within thirty days of the
initial court hearing.” Essentially, the time allowed for courts to complete an eviction
is reduced to expedite the process of an unwanted tenant. It is important to pay
specific attention to the last line under current law: “Current law does not specify the
9. required timing of the trial or hearing.” In many circumstances the inability to
acknowledge a timing of appearance when evicted is highly problematic. SB 179
intends to mandate a waiting period of twenty days after the date of appearance to
complete the eviction. In theory, low-income families desperately need a place to live
and for most, affordable rental housing is the only option. By including a required
timing of the trial, you expedite the process from the time a resident moves out to a
new resident moving in. Affordable rental housing is essential to the low-income
families of Wisconsin as they find the means to make ends meet. This bill protects the
rights of landlords to immediately recover financially after a tenant is evicted by
providing a family in need with a home to call their own.
b. Under current law, in any small claims action, a person may commence
and prosecute or defend an action or proceeding himself or herself, or by an
attorney or a full-time authorized employee of the person. [s. 799.06 (2),
Stats.]
Senate Bill 179 eliminates the requirement of an employee and replaces it with a
clarification of the definition for ‘member.’ The bill disposes of the requirement that “the
employee be a full-time employee and also allows any small claims action by a member
of the person, an agent of the member or an authorized employee of the agent.” More
flexibility is offered when representing a landlord in court. The landlord is permitted to
select any member that warrants the qualifications by a limited liability company.
VIII. Disposition of Property left on Rental Premises
Under current law, if a tenant leaves property of value on the rental premises after he or
she has been evicted, the property must be removed and stored. The evicted tenant is
10. notified of the location of the property and provided with the receipt needed to obtain
possession of the property. The evicted tenant is responsible for the costs of storage. In
Milwaukee County, the sheriff must remove and store the property. In all other counties,
the landlord may choose to be responsible for the removal and storage of the property. If
the landlord does not choose to remove and store the property, the sheriff must do so. [s.
799.45 (3), Stats.]
In the revisions proposed in Senate bill 179, “ if a tenant is evicted and leaves
property on the rental premises, the landlord is not required to store the property unless
the landlord and tenant have entered into a written agreement.” Unlikely, but plausible
the landlord is not required to store the property where he might have been required to in
the past. Anything left behind by a vacated tenant is left if there has been no further
arrangement or agreement. It is at the digression of the landlord to expose of the property
as long as the tenant is told before the signing of the initial lease. However, if the
abandoned property is medical equipment, prescription drugs, or a tilted vehicle further
precaution must be addressed. In this instance, the landlord must notify the former tenant
about the abandoned property even if it was not entered into a written agreement. When
substances that affect one’s well-being are considered, it is of thee utmost importance to
take their health into thought. Senator Frank Lasse understands that affordable rental
housing is important to the State of Wisconsin and ultimately wishes to reduce the
differences between the landlord and tenant while repairing the housing system.
VIII. Alternative Policy Responses
The reform in SB 179 intends to include repairs to the process serving procedures and
other noteworthy procedures. However, after reviewing the various provisions to the
11. current landlord/tenant package, there seems to be one specific controversial
establishment that should be addressed. Essentially, landlords will be exempt from civil
liability for providing a truthful negative reference about a tenant. A negative reference
from a tenant in good faith results in the immunity of the landlord from civil liability. In
part, the language provided seems rather subjective and obsolete when referencing ‘good
faith.’ Acting in good faith is a strong legal term, but can often times be skewed based on
past precedents. Determining the matter of legal action, this notion may vary based on
who is deciding on behalf of who is acting in good faith. It seems that the language
should be more direct to prevent controversial provisions and ensure that the respondent
is responsible for any action.
IX. Recommendation – An Integrated Approach for Future Interns
Based on this policy analysis, a new integrated approach is necessary to reignite the
relationship between landlords and tenants. Many of these provisions simply clarify
existing law, and provide a better rental-housing framework in the law. By drawing
parallels between current law and the provisions of SB 179, we can clearly grasp the
benefits to protecting the rights of both landlords and tenants. Also to take note, these are
common sense reforms that will reduce rental-housing costs for tenants, and improve
landlord/tenant regulations statewide. This here, is an outline to expose the blemishes in
the face of rental housing in the State of Wisconsin. This policy analysis provides a
logical approach to affordable housing units for future interns to reference. With direct
language from the Senator to understanding the greatest issues affecting our state, the
major issue of domestic violence in joint relationships is at the forefront of the problem,
which continues to spread across the country. The landlord/tenant regulation reform
12. policy analysis is a concise, clearly thought out plan to make it easier for any individual
to understand the problems that are affecting our state. From points of discussion to other
noteworthy provisions, the policy analysis is a breakdown of the issues affecting
landlord/tenant law. In summation, please support SB 179.
References:
• Most of the references were provided by The Chief of Staff in the Office of
Senator Lasee to draft up a policy analysis that would draw on the new provisions
and make the highlighted issues understandable for future interns, employees, or
constituents that are involved.
• This policy analysis includes the bill summary, landlord reform points,
landlord/tenant testimony, points on discussion for the Senate floor, and other
noteworthy provisions to current law
• All reforms to SB 179 were given to me to include in the policy analysis for
future interns to catch up to speed with the bill
Also suggested using talking points from:
"SB 179 ("Landlord-Tenant Bill") Is On It's Way To Governor Walker To Be Signed
Into Law | Petrie + Stocking." Petrie + Stocking. N.p., n.d. Web. 21 Dec. 2015.
"User Agreement." WisconsinEye Home. N.p., n.d. Web. 21 Dec. 2015.