Overview
South Dakota sets a general limit of one month's rent for security deposits but allows landlords to charge more under certain "special conditions." The state also features a unique two-tier return timeline that depends on whether the tenant gave proper notice before moving out.
This guide covers everything landlords and tenants need to know about security deposits in South Dakota.
Deposit Limits
South Dakota sets the following limits on security deposits:
- Standard limit: 1 month's rent
- Special conditions exception: Landlords may charge a higher deposit if they can justify "special conditions" that pose a greater risk to the property
What Are Special Conditions?
Special conditions that may justify a higher deposit include:
- The tenant has pets that could cause damage
- The tenant has a history of property damage or eviction
- The unit contains unusually expensive furnishings or finishes
- Other circumstances that reasonably increase the risk of damage
The burden is on the landlord to demonstrate that the higher deposit is justified. If challenged, the landlord must show that the special conditions existed at the time the deposit was collected.
cite: S.D. Codified Laws § 43-32-6.1
Allowable Deductions
Landlords may deduct from the security deposit for the following reasons:
- Unpaid rent: Any rent owed at the time of move-out
- Damage beyond normal wear and tear: Repairs for tenant-caused damage (not ordinary wear)
- Cleaning: Costs to restore the unit to the same level of cleanliness as at move-in
- Other lease obligations: Costs arising from specific breaches of the rental agreement
What Constitutes Normal Wear and Tear?
Normal wear and tear includes:
- Minor scuffs on walls
- Small nail holes from hanging pictures
- Worn carpet from regular use
- Faded paint due to sunlight
Damage beyond normal wear and tear includes:
- Large holes in walls
- Stained or burned carpet
- Broken windows or fixtures
- Unauthorized alterations to the unit
Return Timeline
South Dakota has a two-tier return timeline that depends on the tenant's compliance with notice requirements:
- 14 days (2 weeks): If the tenant gave proper notice before vacating and provided a forwarding address
- 45 days: If the tenant failed to give proper notice before moving out
In both cases, the return must include:
- The remaining deposit amount (if any deductions were made)
- An itemized written statement listing each deduction and the amount
If the landlord fails to return the deposit or provide the required accounting within the applicable time period, the landlord may be liable to the tenant for the full deposit amount plus penalties.
cite: S.D. Codified Laws § 43-32-24
Pre-Move-Out Inspection
South Dakota law does not require landlords to offer a pre-move-out inspection. However, it is recommended that both landlords and tenants document the condition of the unit at move-in and move-out through photographs and written checklists. This documentation can be valuable evidence in the event of a dispute over deductions.
Dispute Resolution
If a tenant believes their deposit was wrongfully withheld, they can:
- Send a demand letter to the landlord requesting the return of the deposit
- File a claim in Small Claims Court (up to $12,000 in South Dakota)
- Contact a local tenant rights organization for guidance
If the landlord intentionally fails to return the deposit or acts in bad faith, the tenant may recover the full deposit amount plus punitive damages as determined by the court. Courts will examine whether the landlord complied with the return timeline and provided proper documentation for all deductions.