Badger HomeownerWisconsin home guide

Hiring a Property Manager in Wisconsin

In Wisconsin, finding and signing tenants for someone else, for pay, is real estate broker work, and it takes a license. Here's what the law covers, how rents and deposits must be handled, and how to check a manager before you sign.

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When a License Is Required

  • A broker, under Wisconsin law, is anyone who for another person and for pay negotiates or tries to negotiate a sale, purchase or rental of real estate. Rentals are named outright.(Wis. Stat. 452.01(2))
  • Promoting the rental of real estate for someone else, for pay, is also broker activity.(Wis. Stat. 452.01(2)(c)) The Real Estate Examining Board's position statement adds advertising the rental of property.(DSPS)
  • No one may act as or advertise as a broker or salesperson without a license, and a salesperson must work under a licensed broker.(Wis. Stat. 452.03)(DSPS)
  • A court has held that an agreement to pay a commission to someone who isn't a licensed broker is void.(Wis. Stat. 452.03 annotation)
  • The statute doesn't name rent collection on its own as broker activity, and we found no official statement on collection-only services.

Who's Exempt

  • Owners: the definition covers acting for another person, so renting your own property is outside it. Officers or partners can rent their company's own real estate.(Wis. Stat. 452.03 annotation)
  • On-site staff: a custodian, janitor, employee or agent of the owner or manager of a residential building who shows units, takes lease applications and gives out rental information.(Wis. Stat. 452.01(3)(e))
  • Clerical staff at a licensed firm whose work is purely administrative or clerical.(Wis. Stat. 452.03(2))
  • Attorneys acting within their law license, plus court-appointed receivers, trustees and guardians, and banks acting within their powers.(Wis. Stat. 452.01(3))

Rents and Deposits

  • Rents, rental application deposits and security deposits a licensee receives as someone's agent are real estate trust funds.(Wis. Admin. Code REEB 18.02)
  • They go into a real estate trust account within 48 hours of receipt. The owner can instead authorize, in writing, deposits straight into the owner's own account; the manager can then pay bills from it only as the owner authorizes.(REEB 18.031)
  • A firm must tell DSPS within 10 days of opening a trust account.(DSPS) Brokers keep a cash journal and a ledger for each transaction, and may keep no more than $300 of their own money in the account.(DSPS)
  • Whoever holds the deposit, the 21-day return rule is the same.(Wis. Stat. 704.28) See security deposits in Wisconsin.

The Agreement

  • Brokerage services are provided under a written agency agreement.(Wis. Stat. 452.01(1m)) The firm must give you a written "Disclosure to Clients" no later than when you sign it. For 1-4 unit residential property, if it isn't built into the agreement, you sign an acknowledgment that you received it.(Wis. Stat. 452.135)
  • The disclosure lists duties the firm owes you, including safeguarding trust funds and other property it holds.(Wis. Stat. 452.135)
  • Licensees must follow the Real Estate Examining Board's conduct rules, which apply to rentals, including protecting the public against fraud and misrepresentation.(REEB 24)
  • Your tenants must be told in writing, at or before signing, who manages the property and can be readily contacted (not required in an owner-occupied building of 4 or fewer units).(ATCP 134.04)
  • Read the fee, term, termination and who-pays-for-repairs sections before you sign. We don't publish typical fees because no official source tracks them.

Checking a License

  1. Open DSPS's Wisconsin Credential/License Search.(DSPS)
  2. Search the person's name, the company's name or the credential number. Real estate credentials are Real Estate Broker (REB), Real Estate Business Entity (REBE) and Real Estate Salesperson (RES).(DSPS)(DSPS)
  3. Check that the credential is current. DSPS says this lookup counts as official verification.(DSPS)

Hiring the trades yourself? The contractor guide covers those licenses.

Filing a Complaint

  • File with DSPS's Division of Legal Services and Compliance, online or by mail to P.O. Box 7190, Madison, WI 53707-7190.(DSPS)
  • DSPS can act only on the license, from closing the complaint to reprimand, suspension or revocation. It can't recover money for you. Complaints opened for investigation take under 11 months on average to resolve.(DSPS)
  • Your name is usually shared with the person you complain about.(DSPS)

Managing it yourself instead? Start with the landlord rules checklist and the landlord hub.

Free Help

  • Tenant Resource Center, a Madison nonprofit with information for tenants and landlords.(Tenant Resource Center) Rental Rights Hotline: 608-257-0006. It also offers housing counseling for both sides and mediation for disputes such as security deposits and lease violations.(City of Madison)
  • Legal Action of Wisconsin: apply for free legal help at (855) 947-2529. Not everyone qualifies. Its housing work covers evictions, housing conditions and security deposits.(Legal Action of Wisconsin)
  • State Bar Lawyer Referral and Information Service: (800) 362-9082. The court doesn't appoint lawyers in eviction cases.(Dane County Circuit Court)
  • DATCP Consumer Protection, the state agency that enforces ATCP 134: (800) 422-7128 or DATCPHotline@wisconsin.gov.(DATCP)
  • City of Madison: Building Inspection takes housing code complaints at 608-266-4551,(City of Madison) and the Department of Civil Rights takes housing discrimination complaints at 608-266-4910.(City of Madison)

Questions

Does a property manager need a license in Wisconsin?

Negotiating, promoting or advertising rentals for another person for pay is broker activity under Wisconsin law, and acting as a broker without a license is prohibited. So a manager who finds and signs tenants for owners generally needs a real estate license. On-site staff who only show units, take applications and hand out the owner's terms are excluded.

How do I check a property manager's license?

Search DSPS's Wisconsin Credential/License Search by name, business name or credential number. Real estate credentials are Real Estate Broker, Real Estate Business Entity and Real Estate Salesperson. DSPS says the lookup counts as official verification.

Where should a property manager keep my rent and the tenants' deposits?

Rents, application deposits and security deposits a licensee receives for an owner are trust funds. They go into a real estate trust account within 48 hours, or straight into the owner's own account if the owner authorizes it in writing.

Do I need a license to manage my own rental?

The broker definition covers acting for another person, so renting your own property isn't broker activity. A state attorney general opinion says officers or partners can rent their company's own property without a broker's license.