A verbal lease agreement in Wisconsin refers to a rental agreement that is agreed upon orally between a landlord and a tenant without a written contract. While verbal lease agreements are legal in Wisconsin, it is important to note that they come with risks and limitations for both the landlord and the tenant.

The main risk associated with a verbal lease agreement is the lack of clarity in the terms and conditions of the rental agreement. Without a written contract, it can be difficult to determine what was agreed upon in case of a dispute between the landlord and the tenant. This lack of clarity can also make it difficult for a landlord to enforce payment of rent, security deposits, or other fees associated with the lease agreement.

Another limitation of a verbal lease agreement in Wisconsin is that it cannot exceed one year. This means that if the landlord and tenant agree to a lease agreement that lasts longer than one year, it must be in writing to be legally binding.

In addition, Wisconsin law requires landlords to provide tenants with a written notice informing them of their rights and responsibilities as tenants. This notice must be provided within 5 days of the start of the lease agreement. Without a written lease agreement, it can be difficult for landlords to comply with this requirement.

Verbal lease agreements also limit the ability of landlords to protect themselves in case of damage to the property or eviction. Without a written agreement, it can be difficult for landlords to prove that the tenant was aware of the rules and expectations for living in the rental property.

In summary, while verbal lease agreements are legal in Wisconsin, it is important to note that they come with risks and limitations for both the landlord and the tenant. To protect themselves and ensure clarity in the terms and conditions of the rental agreement, landlords and tenants are encouraged to have a written lease agreement that specifies all the terms and conditions of their agreement.