On Oct. 31, a bill giving landlords more leverage over tenants passed the state Assembly. The landlord bill, introduced by three Republicans, will have a “significant impact on the working relationship between landlords and tenants,” Ald. Scott Resnick, District 8, said in an interview with The Badger Herald.
The bill would remove a prior limit on security deposits so that they would no longer be limited to one month’s rent. Additionally, landlords would no longer be obligated to include photos or itemized lists for any deductions from a security deposit because of damages and would be able to deny tenants on the basis of income, among other things.
Republicans argue that the bill would give landlords protections and seem common sense. They take the typical conservative argument that the free market promotes money making, in this case, for landlords. But there are problems with the free market approach. For example, monopolies and oligopolies (markets dominated by a few companies) infringe on the well being of individuals. As reported by The Badger Herald, Resnick noted this and observed that “all the rights [that have] evolved in Madison in the last 25 years will go away.”
In addition, The Badger Herald reported that Ald. Mike Verveer, District 4, noted, “[n]ot only will it have a detrimental effect on all renters, but students will be especially affected.” We students know the trials and tribulations of being a tenant well. For starters, there is the fact that we are in a pretty unequal power relationship with our landlords. If there is something we object to in a lease, they will find another student willing to sign it. As a result, we are forced to accept whatever is put in leases.
The bill gives landlords even more power, further lessening our ability to find favorable leases. Furthermore, what would stop a landlord from raising the amount of his or her security deposit exponentially? Most landlords in Madison already charge the maximum they are allowed to, so why would they not raise it if a security deposit ceiling is removed?
Students are currently on an uneven playing field with landlords. The problem with law is that, from a Republican conception of it, we are all equals. But the reality is far different. Everyone is not treated equally in the justice system, unfortunately, and everyone does not have the same bargaining rights in contractual relationships, like that of a landlord to a tenant. We students, and most renters, do not stand on equal ground with our landlords. The law needs to recognize this.
One of the justifications for the bill is that it is important for a landlord to be able to know they are renting to good people that will take care of the property. But isn’t it also important to get a detailed reason why a landlord is taking a large portion of your security deposit (something that would no longer be required, thanks to the bill)? Tenants are being put on even lower ground relative to their landlords.
All that being said, just because landlords can take their tenants for an arm and a leg does not mean they will. If this bill ends up being enacted, this does not ensure that security deposits will suddenly skyrocket or that landlords will suddenly start taking large chunks out of your security deposit without adequate explanation.
Perhaps there is a strong norm among landlords that will cause them to never charge more than the standard security deposit. Or perhaps they will use their new power responsibly and only increase security deposit rates for the more “risky” tenants. We ought not to yell that the sky is falling before anything has begun to fall.
Reginald Young ([email protected]) is a junior majoring in legal studies and Scandinavian studies.