Landmark Settlement Provides Relief for Tenants of Major Milwaukee Landlord

Feb 21, 2025 at 9:58 AM

Residents of Berrada Properties, a prominent Milwaukee-based rental company, may now be eligible for financial compensation and support services following a significant legal settlement. The agreement, reached between the Wisconsin Department of Justice (DOJ) and Berrada Properties, mandates the provision of substantial funds to assist tenants who have faced various forms of alleged misconduct. This includes improper leasing agreements, unfair billing practices, and illegal evictions. The settlement aims to provide much-needed relief to thousands of renters, many of whom are from lower-income backgrounds. The DOJ has established a dedicated webpage to guide current and former tenants through the process of accessing these resources.

Understanding the Legal Action and Its Impact

The settlement stems from a lawsuit filed in 2021 by the Wisconsin Department of Justice, alleging numerous violations of state laws by Berrada Properties. These infractions ranged from improper lease terms to fraudulent activities and unlawful eviction procedures. As part of the resolution, the company must allocate over $5 million towards restitution and tenant assistance programs. This marks a significant step toward addressing the grievances of affected individuals, particularly those with limited financial means. The case highlights the importance of consumer protection in the rental housing sector.

For years, Berrada Properties has been under scrutiny for its business practices. The investigation revealed that the company had engaged in activities such as confiscating personal property and withholding security deposits, which were deemed illegal. Despite not admitting guilt, the landlord agreed to the settlement, signaling a commitment to reform. The impact of this case extends beyond individual tenants, as it sets a precedent for accountability in the rental industry. The settlement includes provisions for eviction diversion and income-based rental programs, managed locally by Community Advocates and the Milwaukee Rental Housing Resource Center. This comprehensive approach aims to prevent future occurrences of similar issues.

Accessing Assistance and Moving Forward

Tenants of Berrada Properties can now explore various avenues for support, including financial restitution and rental assistance. The newly established webpage provides detailed information on how to apply for these benefits, ensuring transparency and accessibility. The Attorney General emphasized the significance of this settlement, encouraging eligible individuals to take advantage of the available resources. This initiative seeks to empower tenants by offering them the tools needed to regain stability in their living situations.

The settlement also introduces new programs aimed at preventing evictions and providing income-based rental options. These measures are designed to offer long-term solutions for tenants facing financial hardships. Community Advocates and the Milwaukee Rental Housing Resource Center will play crucial roles in managing these programs, ensuring that they are implemented effectively. Tenants who believe they have been wronged by Berrada Properties can also file complaints, further contributing to the ongoing efforts to hold landlords accountable. Overall, this settlement represents a positive development for renters in Milwaukee, fostering a more equitable and supportive housing environment.