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South Dakota security deposit law
Short answer: A South Dakota landlord has 21 days after the tenancy ends and the tenant gives a mailing address to return the deposit, or send a written statement of the specific reasons for keeping any of it. The deadline was changed by a 2026 law. Deposits are capped at one month's rent in most cases.
| Deadline to return the deposit | 21 days after the tenancy ends and the landlord receives the tenant's mailing address or delivery instructions (changed by a 2026 law). If the tenant asks, an itemized accounting is due within 45 days after the tenancy ends. |
|---|---|
| Limit on how much a landlord can charge | One month's rent, unless the landlord and tenant agree to a larger deposit because special conditions pose a danger to the premises. |
| Itemized list of deductions | Yes. A written statement giving the specific reason for anything withheld, plus a full itemized accounting within 45 days if the tenant asks. |
| Interest on the deposit | Not required by state law. |
| Penalty if the landlord breaks the rules | A landlord who doesn't comply loses the right to keep any of the deposit. Bad-faith retention, or bad-faith failure to send the statement or accounting, can add punitive damages of up to $200. |
| What the tenant has to do | Give the landlord your mailing address. Ask in writing for an itemized accounting if you want one. |
| The law | South Dakota Codified Laws Sections 43-32-6.1 and 43-32-24 |
Official law: South Dakota Codified Laws Sections 43-32-6.1 and 43-32-24. Checked against the statute on 2026-11-04.
Good to know
- Deductions are limited to unpaid rent or other money owed under an agreement, and restoring the premises to move-in condition minus ordinary wear and tear.
Tips for landlords
- Do a written move-in inspection and have the tenant sign it. Take dated photos of every room, including inside appliances and closets.
- Collect the tenant's forwarding address in writing at move-out.
- Put the itemized list and the refund in the mail well before the deadline, and keep proof of mailing.
- Normal wear and tear (faded paint, light carpet wear, small nail holes) usually can't be charged. Damage beyond that can.
Tips for tenants
- Take your own dated photos and video on move-in day and move-out day.
- Give your landlord your forwarding address in writing, and keep a copy.
- If the deadline passes, send a written demand letter that cites the law above before going to small claims court.
Common questions
How long does a landlord have to return a security deposit in South Dakota?
21 days after the tenancy ends and the landlord receives the tenant's mailing address or delivery instructions (changed by a 2026 law). If the tenant asks, an itemized accounting is due within 45 days after the tenancy ends.
Is there a limit on security deposits in South Dakota?
One month's rent, unless the landlord and tenant agree to a larger deposit because special conditions pose a danger to the premises.
Does a landlord in South Dakota have to itemize deductions?
Yes. A written statement giving the specific reason for anything withheld, plus a full itemized accounting within 45 days if the tenant asks.