Much of the discussion surrounding Wisconsin's 2027 practice changes has focused on residential sales transactions. But 2025 Wisconsin Act 69 also affects residential rentals, including how rental properties are marketed and how firms working with prospective tenants are compensated.
Beginning January 1, 2027, firms involved in residential rental transactions will need to understand these changes as well as the revised WB-37 Residential Listing Contract — Exclusive Right to Rent and WB-39 Tenant Representation Agreement.
New public marketing requirements for rentals
Under Wis. Stat. § 452.1355, firms listing residential rental properties containing one to four dwelling units generally must publicly market the property within one business day from the start date of the listing contract.
Public marketing means advertising the property on at least one internet platform or website accessible to the general public and licensees working with prospective tenants.
However, landlords retain the right to choose a different marketing approach. A landlord who does not want the property publicly marketed may complete the new WB-55 Public Marketing Opt-Out Agreement. The WB-55 documents the landlord's decision and explains the potential consequences of limiting public marketing, including reduced exposure to prospective tenants.
Importantly, opting out of public marketing does not eliminate the listing firm's other statutory obligations. The firm must still share property information with licensees working with prospective tenants, respond to their inquiries and make the property available for showings, subject to the landlord's lawful instructions.
Compensation changes affect rental transactions, too
The 2027 practice changes also modify how firms may receive compensation in rental transactions.
Beginning January 1, 2027, Wis. Stat. § 452.19(3) prohibits a firm from accepting compensation from another firm for brokerage services in a transaction involving residential property containing one to four dwelling units. This means a rental listing firm can no longer compensate another firm for brokerage services provided to a prospective tenant in a covered residential rental transaction.
The law also restricts compensation paid directly by a party who is not the firm's client. Under Wis. Stat. § 452.19(4)(b), a firm that is not the listing firm may not receive compensation from a nonclient party unless the payment agreement is documented in an executed offer to purchase or option to purchase. Unlike the firm-to-firm prohibition, this provision does not expressly limit its application to residential properties containing one to four dwelling units.
Because rental transactions involve leases rather than offers to purchase or options to purchase, this creates a significant change for firms working with prospective tenants.
For example, a firm representing a tenant under a WB-39 Tenant Representation Agreement cannot receive compensation from the landlord or rental listing firm in a transaction involving residential property containing one to four dwelling units. Instead, the tenant's firm must look to its tenant client for compensation under the WB-39.
The revised WB-39 also requires compensation to be established as an objectively ascertainable amount or rate and prohibits the firm from receiving compensation exceeding the amount or rate agreed to in the tenant representation agreement.
What about tenant customers?
The changes may be particularly significant for firms that work with prospective tenants as customers rather than clients.
A firm working with a tenant customer generally does not have a tenant representation agreement establishing the tenant's obligation to pay compensation. In the past, the firm might have received compensation from the rental listing firm or directly from the landlord.
Beginning January 1, 2027, neither arrangement is available for transactions involving residential property containing one to four dwelling units. Firms that regularly assist tenant customers should consider how these restrictions will affect their business practices.
Not every rental is treated the same
The new public marketing requirements and prohibition on firm-to-firm compensation apply to residential property containing one to four dwelling units. These restrictions do not apply to commercial transactions or residential properties containing five or more dwelling units.
Accordingly, a rental listing firm may continue to compensate another firm for brokerage services in transactions involving larger residential properties or commercial leases, subject to other applicable requirements.
However, the separate restriction on compensation paid directly by a nonclient party under Wis. Stat. § 452.19(4)(b) does not expressly contain the same one-to-four-unit limitation. Firms should distinguish compensation paid by another firm from compensation paid directly by a landlord when evaluating their compensation arrangements.
As January 1 approaches, firms involved in residential rentals should review their listing procedures, tenant representation agreements and compensation practices. Understanding the revised WB-37 and WB-39 now will help licensees explain the changes to landlords and tenants before entering into new agreements.
For more information, see the WRA’s 2027 practice changes resource webpage.
