South Dakota law limits residential security deposits to one month rent in most cases and requires landlords to return the deposit, or an itemized statement of deductions, within two weeks after the tenant moves out. Sioux Falls follows the state rule.
SDCL chapter 43-32 governs security deposits in Sioux Falls. The standard cap is one month rent, with a higher amount allowed only when special conditions warrant it. After the tenant vacates and provides a forwarding address, the landlord has two weeks to return the deposit or a written list of deductions, and a final accounting within forty-five days. Deductions are limited to unpaid rent and damage beyond ordinary wear and tear. Failure to follow the timeline can let a tenant sue for the deposit plus a statutory penalty and attorney fees in small-claims court.
Withholding a deposit without timely written itemization can expose a Sioux Falls landlord to the deposit plus a statutory bad-faith penalty and possible attorney fees.
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See how Sioux Falls's security deposit rules rules stack up against other locations.
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