South Dakota security deposit rules
South Dakota limits security deposits to one month's rent (a larger deposit may be agreed where special conditions pose a danger to maintenance of the premises). The deposit must be returned refund or written statement of reasons for withholding within 21 days after termination of the tenancy and receipt of the tenant's mailing address or delivery instructions; itemized accounting within 45 days on request. No interest is owed on the deposit under state law.
What the law requires
One month's rent (a larger deposit may be agreed where special conditions pose a danger to maintenance of the premises). Returned Refund or written statement of reasons for withholding within 21 days after termination of the tenancy and receipt of the tenant's mailing address or delivery instructions; itemized accounting within 45 days on request. 2026 change: SL 2026 ch. 179 amended § 43-32-24 to set the return period at 21 days (previously two weeks). Failure to comply forfeits the right to withhold; bad-faith retention adds punitive damages up to $200. Read from the official SDLRC statute API (sdlegislature.gov/api/Statutes).
- Deductions: unpaid rent and damage beyond normal wear and tear, itemised in writing. Cleaning and repainting after ordinary use are normal wear in most states.
- Deadline: the 21-day clock usually starts when the tenant moves out and, in many states, when a forwarding address is provided. Missing it typically forfeits the landlord’s right to keep any of the deposit and can add statutory damages.
- Interest: none required under state law. Cities in some no-interest states have their own ordinances, so check the municipal code where you rent.
Move-out checklist
- Give written notice of the move-out date and a forwarding address; many deadlines only start when the landlord has the address.
- Photograph every room after cleaning, with a timestamp. Request a joint inspection where the state allows one.
- If the deadline passes, send a written demand citing SDCL § 43-32-6.1; § 43-32-24. Small-claims court handles deposit disputes in every state and most cap the claim well above a typical deposit.
Related South Dakota rules
- Late fees: No statutory cap or grace period for residential late fees in South Dakota; the lease controls. Late fee calculator.
- Notice to end a tenancy: Notice at least as long as the rental period, not exceeding one month (30 days for month-to-month) by either party Notice calculator.
- All rules on one page: South Dakota landlord and tenant law.
Frequently asked questions
How much can a landlord charge for a security deposit in South Dakota?
One month's rent (a larger deposit may be agreed where special conditions pose a danger to maintenance of the premises). 2026 change: SL 2026 ch. 179 amended § 43-32-24 to set the return period at 21 days (previously two weeks). Failure to comply forfeits the right to withhold; bad-faith retention adds punitive damages up to $200. Read from the official SDLRC statute API (sdlegislature.gov/api/Statutes).
How long does a landlord have to return a security deposit in South Dakota?
Refund or written statement of reasons for withholding within 21 days after termination of the tenancy and receipt of the tenant's mailing address or delivery instructions; itemized accounting within 45 days on request. The statute is SDCL § 43-32-6.1; § 43-32-24.
Does a South Dakota landlord have to pay interest on the security deposit?
No. South Dakota law does not require interest on residential security deposits.