An appellate ruling in Koble creates sweeping new liability for housing providers, exposing them to extreme penalties for minor or harmless lease errors.
The Koble decision requires landlords to pay tenants double all rent paid under the lease, plus attorney fees and court costs, for an illegal lease provision even when the tenant suffered no harm. This dramatically expands liability, threatens the financial stability of housing providers, and risks worsening the housing market. Although the Wisconsin Supreme Court has taken the case, legislative action is still needed to clarify the rules and ensure consistent, fair protections for both landlords and tenants.
AB 202 is that legislative solution. This bill clarifies the legal consequences when a residential lease contains an illegal provision and the tenant is not harmed.
It seeks to enhance tenant protections while establishing clear limits for landlords, preventing unfair lease terms and ensuring compliance with laws through tenant remedies for violations, limited damages for prohibited provisions, and explicitly stating that the Wisconsin Consumer Act does not apply to landlord-tenant relationships.
Act now to prevent landlord bankruptcy, strengthen tenant protections, and restore balance in Wisconsin law. Ask Gov. Evers to sign AB 202 into law today.