South Dakota Statewide Rule

South Dakota Security Deposit Law: 1-Month Cap, 21-Day Return

Some RestrictionsApplies statewide across South Dakota (2026)

South Dakota caps a residential security deposit at one month's rent, though a larger deposit is allowed by written agreement where special conditions threaten the premises. Under SDCL 43-32-24, the landlord must return the deposit or give a written statement of reasons within 21 days after the tenancy ends and the tenant provides a mailing address.

Key Facts

Deposit cap: 1 month's rent (larger allowed by written agreement where special conditions endanger the premises)
Return deadline: 21 days after termination and receipt of tenant's mailing address (itemized accounting within 45 days on request)
Itemized statement: Written statement of reasons required within 21 days; itemized accounting within 45 days upon tenant request
Statute: SDCL 43-32-6.1 and 43-32-24
Penalty: Forfeiture of withholding rights; punitive damages up to $200 for bad faith retention

Last verified: 2026-06-27

Full Breakdown

SDCL 43-32-6.1 provides that a lessor of residential premises "may not demand or receive a security deposit, however denominated, in an amount or value in excess of one month's rent except that a larger deposit may be agreed upon between the lessor and the lessee where special conditions pose a danger to maintenance of the premises." Any money securing performance of a rental agreement counts as a deposit. Under SDCL 43-32-24, within 21 days after termination and receipt of the tenant's mailing address, the lessor must return the deposit or furnish a written statement showing the specific reason for withholding. Deductions are limited to unpaid rent and other funds due, and restoring the unit to its condition at move-in, ordinary wear and tear excepted. On the tenant's request, an itemized accounting is due within 45 days.

Violations & Penalties

Under SDCL 43-32-24, a lessor who fails to comply forfeits all rights to withhold any portion of the deposit. Bad faith retention of a deposit, or bad faith failure to provide the required written statement or itemized accounting, subjects the lessor to punitive damages not to exceed two hundred dollars.

Frequently Asked Questions

How much can a landlord charge for a security deposit in South Dakota?

No more than one month's rent. SDCL 43-32-6.1 bars a residential landlord from demanding a deposit in excess of one month's rent, except that a larger deposit may be agreed upon in writing where special conditions pose a danger to maintenance of the premises.

How long does a landlord have to return a security deposit in South Dakota?

Within 21 days after the tenancy ends and the landlord receives the tenant's mailing address, the landlord must return the deposit or provide a written statement of the specific reasons for withholding (SDCL 43-32-24). On request, an itemized accounting of any deductions is due within 45 days.

What can a landlord deduct from a security deposit in South Dakota?

Only amounts reasonably necessary to remedy the tenant's unpaid rent and other funds due under the agreement, and to restore the premises to their condition at the start of the tenancy, ordinary wear and tear excepted (SDCL 43-32-24).

Sources

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