Navigating the legal system after receiving an eviction filing is already a difficult task. This challenge can become even more insurmountable when part of your landlord’s eviction filing consists of junk fees or charges that are not your responsibility under the rental agreement. These fees make it even more difficult for tenants to obtain and maintain stable, affordable housing. Examples of such fees include nonrefundable deposits, convenience fees, punitive charges, court costs, or excessive late fees.

EDDP And Junk Fees
Since 2023, TRC has reviewed applications for financial assistance covering 7,428 months of activity for tenants facing eviction in Dane County. Of these months, the EDDP has withheld charges from 1,645 months, or over 22% of all months reviewed. In total, these charges add up to $263,535.84 for fees that were charged by a landlord that were found to be either ineligible or unallowable under the EDDP’s program rules. At the average monthly rent, this total represents nearly 220 months of assistance that would’ve otherwise been spent on fees that are either unlawful, excessive, or unallowable under the program.

Nearly 37% ($95,129.07) of the total withheld charges were withheld rents, where the landlord either charged a rent amount that didn’t match the rental agreement, or where the landlord was charging double the daily rent amount for a tenant “holding over” after the end of their rental agreement.

Other charges withheld include court costs and attorney fees totalling $38,402.54; charges not included in the rental agreement in the amount of $30,942.87; excessive late fees charged improperly or over the program’s cap in the amount of $26,868.51; and utilities charged in a manner inconsistent with the provisions of the rental agreement totalling $25,000.57. The remaining $47,192.28 was withheld for various other reasons, such as lacking documentation.

Challenges for Tenants
Each set of charges present their own obstacles and challenges for tenants who are already in a vulnerable position facing the eviction process. Among the most frustrating for many tenants is the fact that eviction court often doesn’t involve a review of these charges; even when the eviction action was filed due to nonpayment of rents. In such cases, many tenants find themselves arguing with their landlord at court in situations where they had paid the monthly rent, but their payments were improperly applied to charges that shouldn’t have been included on their rent ledger under their rental agreement. For these tenants, they often find that the court process ignores these concerns and even if their case is resolved, the question of these charges is never addressed.

Other junk fees are less ambiguous under the law, such as court costs, service fees, and attorney fees. In eviction court, the parties typically cover their own costs for bringing the eviction action, meaning the landlord typically would be responsible for these costs unless they are awarded by a judge. Moreover, Wis. Stat. 704.44(4m) specifies that a rental agreement including provisions that require a tenant pay court costs or attorney fees is void and unenforceable. Yet many landlords as a matter of course include these charges on a tenant’s rent ledger or rent statement without any regard for whether the charge is valid under the law or the responsibility of the tenant. In these situations, many tenants are able to get the case dismissed or reach a stipulated dismissal, however the question of these charges will remain unresolved by the court and can often lead to another eviction action being filed shortly after the first case.

In other situations, these junk fees are forbidden by local laws. One such example would be pest control costs in the City of Madison. MGO 27.07(d) specifies that pest infestations are the responsibility of the owner of the property. However, many City of Madison residents find charges for pest removal or preventative treatments on their monthly rent bill.

Impacts on Rental Assistance
For tenants facing eviction, the EDDP has been able to provide a significant amount of financial assistance. However, the issue of withheld charges and junk fees remains a significant challenge for the program and tenants alike. The EDDP only covers lawful charges that are authorized by the rental agreement. In issuing payments, we notify the tenant and the landlord of any charges that were withheld, provide specific details, and ask the parties to provide additional documentation in support of charges that were withheld. Many landlords leave these charges on the rent ledger and don’t respond to seek reimbursement of previously withheld charges. At an increasing rate, we see repeat eviction filings against households that were provided financial assistance and the balances are comprised of charges that were disputed, withheld by the program, deemed unlawful by the parties, or otherwise applied improperly.

As we’ve discussed in past articles, repeat eviction filings against a household have detrimental effects on that household’s ability to remain stably housed. Each time a tenant has an eviction action filed against them, their household shows up on CCAP (Wisconsin Circuit Court Access) one more time, regardless of the merits of the filing. For more details, see “Repeat Eviction Filings and Household Impacts” in our Quarter 4 report.

Long-Term Impacts for Tenants
The challenges presented by these fees don’t stop when the tenant moves out or finds new housing. The issues surrounding these fees can often go on for years after a tenant has vacated. In some cases, when a tenant either refuses or is unable to pay these costs, the landlord will send the debt to collections. Tenants enrolled in the EDDP have reported challenges disputing these debts with both their landlord and a debt collector, leading to lower credit scores, harassing debt collection practices, and impacts in other areas of their life. These fees can also have a snowball effect, where a tenant refuses to pay a disputed charge, the landlord then applies their payments improperly, and charges late fees each month on the costs. Most of the time, these late fees are not allowable under ATCP 134, though they still are charged to the tenant.

In addressing these concerns, the EDDP continues to encourage more transparency on these charges from landlords to their tenants and rental assistance programs. Tenants also require additional resources and materials in order to understand their rights and responsibilities, along with legal services for those situations where landlords don’t address these issues with the tenant.