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South Dakota security deposit law
Checked against the South Dakota statutes on September 24, 2026 General information, not legal advice
Key numbers
- Security deposit limit
- 1 month's rent
- more only by agreement where special conditions endanger the premises
- SDCL § 43-32-6.1
- Deposit return deadline
- 21 days
- after the tenancy ends and you have the tenant's mailing address
- SDCL § 43-32-24
Security deposit limit
A residential security deposit may not be more than one month's rent. Any money whose purpose is to secure the tenant's performance under the rental agreement counts as a security deposit, whatever it is called.
- A larger deposit is allowed only if landlord and tenant agree to it where special conditions pose a danger to maintenance of the premises. SDCL § 43-32-6.1
The Rentari South Dakota lease states the deposit amount and says it may not exceed one month's rent unless landlord and tenant agree on more where special conditions pose a danger to maintenance of the home.
Deposit return
Within 21 days after the tenancy ends and you receive the tenant's mailing address or delivery instructions, return the deposit or give the tenant a written statement of the specific reasons for keeping any part of it. You may keep only what is reasonably needed to cover unpaid rent and other money due under an agreement, and to restore the home to its condition at the start of the tenancy, ordinary wear and tear excepted.
- If the tenant asks, give an itemized accounting of any deposit withheld within 45 days after the tenancy ends. SDCL § 43-32-24
- A landlord who does not follow the section loses the right to withhold any part of the deposit. SDCL § 43-32-24
- Keeping a deposit in bad faith, or failing in bad faith to give the written statement or itemized accounting, can bring punitive damages of up to $200. SDCL § 43-32-24
- The 21-day period comes from a 2026 amendment; older guides give two weeks. SDCL § 43-32-24
The Rentari South Dakota lease prints the 21-day deadline, the mailing address condition, the allowed deductions, the 45-day itemized accounting on request and the forfeiture and $200 penalty.
Deposit account and interest
Not set by statuteSouth Dakota's landlord and tenant chapter does not require a separate deposit account or interest on a residential deposit.
- The tenant's protection is the return deadline and the forfeiture rule for a landlord who does not comply. SDCL § 43-32-24 See Deposit return on the South Dakota page
Move-in condition
Not set by statuteThe landlord and tenant chapter does not require a move-in checklist or condition report. Deductions are measured against the home's condition at the start of the tenancy, so a dated record of that condition is your evidence.
SDCL ch. 43-32 SDCL § 43-32-24
- The tenant must keep the home, appliances and other leased property in good condition and repair damage caused by the tenant's negligent, willful or malicious conduct or that of people under the tenant's control. SDCL § 43-32-10
The lease has the tenant accept the home as documented in any move-in condition report and report existing damage in writing within seven days of move-in.
Questions
How much can I charge for a security deposit in South Dakota?
No more than one month's rent. A larger deposit is allowed only if you and the tenant agree to it where special conditions pose a danger to maintenance of the home.
When do I have to return the deposit?
Within 21 days after the tenancy ends and you receive the tenant's mailing address or delivery instructions, return it or give a written statement of the specific reasons for keeping any part. If the tenant asks, give an itemized accounting within 45 days after the tenancy ends.
What happens if I keep a deposit improperly?
A landlord who does not follow the return rules forfeits the right to withhold any part of the deposit. Keeping it in bad faith, or failing in bad faith to give the statement or accounting, can add punitive damages of up to $200.